Rates may have not yet bottomed??
#91
11-01-2009, 01:12 AM
The secondary market is where the mortgage originators sell their assets.
Banks and private mortgage companies provide the funding for the great majority of all mortgages. However, they usually prefer not to keep those assets on their books. They sell the mortgages on the secondary market to companies that securitize them by packaging them into MBS's which in turn are sold to investors. The government is a huge player in the secondary market through Ginnie Mae, Fannie and Freddie. None of those companies actually make loans to borrowers. They buy already existing mortgages in order to maintain liquidity in the market. No, they only own those who do lend... Federal Reserve is the lender of the first choice. American Express became a deposit holding company just so that they can borrow from the Fed, so did GMAC, JP Morgan and all other commercial banks who shouldnt be.Banks are borrowing at .25% right now and people wonder why their stock is up. They borrow capital which is not real from the agency who can create it out of thin air......but for how long? Our bubble economy just keeps getting bigger. Last edited by Dejanh; 11-01-2009 at 01:23 AM. 
#92
11-02-2009, 11:52 AM
CIT Group became a bank holding company and received 2.3 Billion from the TARP program.
Now they are bankrupt. Perhaps the fourth largest bankrupcy in American history (so far). AIG, Citigroup (different from CIT Group), and Bank of America have received 100 Billion from the TARP program. Yikes.
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#93
11-06-2009, 06:51 AM
Board Regular
Join Date: Jan 2008
Location: In the back of your mind
Posts: 421
[QUOTE=
Our bubble economy just keeps getting bigger.[/QUOTE] And we now know what happens to bubbles.
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#94
11-06-2009, 06:51 AM
Board Regular
Join Date: Jan 2008
Location: In the back of your mind
Posts: 421
[QUOTE=Our bubble economy just keeps getting bigger.[/QUOTE]
And we now know what happens to bubbles.
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The Big Engines In the Night- The Diesel on the Pass -Jack Kerouac, "Mexico City Blues"
#96
12-01-2009, 03:52 AM
Just got off the phone with my financial adviser, Mr. Mel Scheister, with the financial consulting firm of Wheecan, Lyon, Steelwell, LLP.
Looks like 2010 is shaping up as a promising year for chain letters and pyramid schemes!! :smokin: |
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