PRIME DEBT CANDIDATE
Someone who has great credentials (job, salary, savings, credit score etc.)

SUB PRIME CANDIDATE
Someone who has compromised credentials (job, salary, savings, credit score etc.)

COMMUNITY RIA
Government mortgage banks (Fannie Mae, Freddie Mac) were forced to issue sub prime debt.

EARLY CAUSES PART 2
Financial services firms like Lehman Bros. issued CREDIT DEFAULT SWAPS (CDS).
CDS says that I (Lehman) will insure your (Fannie Mae, Freddie Mac) debt. Essentially, this means if you (Fannie and Freddie) do not get your sub prime loans paid back, we will pay it back.

THEN CAUSES STEP 2…

MORTGAGE-BACK SECURITIES AKA SUB PRIME DEBT
Firms like Lehman turned all the pools of sub prime debt into securities by bundling them together.
So sub prime Mortgages A,B, & C were bundled together and sold to investors.

HOW WERE THEY SOLD TO INVESTORS
Security ratings firms like Moody’s took all the SUB PRIME MORTGAGES, and assigned ratings to them in order of best to worst. The catch is that they’re all “bad.” But if a sub prime candidate had a better job than another, his sub prime debt was rated better.
So now you have Triple A rated sub prime debt.
Trading was so voluminous that investors and trading firms weren’t paying attention or were just too naive or greedy.

CAUSES STEP 3
Rumors start to swirl about Lehman being on the verge of going broke. No one knew why. Then reports said that they had tremendous exposure to these MORTGAGE BACKED SECURITIES and CREDIT DEFAULT SWAPS (insurance on the toxic debt).

CAUSES STEP 4
Investors begins selling their securities in sub prime debt.
But investors can not be paid back because the number of investors asking for their money equates to more money than the holders of the issuers of the securities (banks such as fannie and freddie, lehman) have.

FINAL STAGES
More and more banks reveal they are holding sub prime debt — billions of dollars worth.

LEHMAN IS ALLOWED TO FAIL

CREDIT DRIES UP
People can not buy cars on credit (loans).
Credit cards begin capping credit lines for existing card holders.

REAL ESTATE CRASHES
No demand for houses because sub prime candidates can’t get loans.
House prices drop. (The market corrects itself).

TREASURY DEPT SUGGESTS BAILOUT OF BANKS.

Department Of Human Services
In order to be on Tenn Care you have to live the life of poverty to be placed on it.
It is like I was told when we allow the Federal Government to take care of these things what usually happens they screw it up.
Now take the mother with 14 kids she will be on welfare and who has to help her raise her kids the American Taxpayer.
Now what is Obama going to do when all the working class citizens with jobs loose them and we are out on the streets because and we can not pay his taxes. The working class citizen is what keeps the economy going. I guess he plans on bringing in people from foreign Countries in so they wont have to pay them minimum wage to take our jobs, and businesses away from us.
Did you know it is the middle man who gets hit the hardest and the small businesses.
When I get to Social Security age their may not be anything left it in for me to have on my own retirement. For I have been told that when these foreigners are sent home the money I pay through FICA goes with them. The businesses match your Social Security they take out of each of our paychecks that is way it is called quarterly taxes.
Our Government is taxing the American People to death. Our ancestors came over just to get away from the King’s Taxes and did you know that in the Constitution Of The United States we are not to be taxed. But how can you get anyone to stand together and let our Government know as American Citizens we are getting tired of this. Obama is now trying to get it where the voters of this Country has no say in how the Government treats us. If it were up to Obama and Clinton these are the Freedoms that will be taken from us.
1. Freedom of Speech
2. Freedom to bear arms and form a militia
3. Freedom of Religion
Did you know that I looked in my daughters history book and not all the Freedoms were listed.

We talk about de-regulation of various industries which sounds good from a less-government standpoint. But then you have the lenders who made loans to people who would never have made it through the normal financial qualification process…at least for the amount that they were approved for. They call it “creative financing” and talk about it as finding ways for more people to achieve the American dream of home ownership. Now we’re having to bail them out? No, I say re-finance them at a more reasonable fixed rate and extend their mortgages for an appropriate length so that they can pay off their loan in their lifetime – rather than re-possess it and never get a proper return on the loan.

The jerks who made those types of loans by inflating people’s reported incomes should lose their jobs because they showed poor judgment in the things that they were supposed to be good at – then some of the banks that got bailout money paid “incentives” to those same stupid people to RETAIN them! I’m sure that many of the people who are faced with losing their homes could do a far better job of following a standard financial review process and ensuring that banks and other mortgage holders make loans for amounts that correspond to a person’s actual income and not some pie-in-the-sky fantasy figure. That would do a lot to insure the financial stability of those businesses and create shareholder value for the stockholders – instead of profits swirling the toilet bowl.

Then you have all of those check cashing places where they essentially loan you money against your future paycheck at some ridiculously exorbitant interest rate. They can charge rates that far exceed any established lending institution and some would say exceed the legal definition of “usury.” I do not believe that short term loan rates of this kind should be allowed to exceed what is allowed in other lending institutions. It takes advantage of the poor and less educated in society. And yes, everyone knows someone who has used it properly and it saved them just in time but it’s like an iceberg: for every positive story that you see, there is another really shitty one below the surface where people continue to borrow until finally the entire check is used up by the interest paid. One might be far better off borrowing from a loan shark or the mob.

When you see this kind of business popping up, it’s just another sign of so-called “creative financing” under the guise of capitalism that is nothing more than screwing less financially sophisticated people. It is extending credit to people who can not afford the usual path to establishing credit. It’s a part of the climate of instant gratification that requires that we will get what we want right now, no matter what.

Well, here’s the result: financial failures galore, people first losing their homes and then their jobs, but Bernie Madoff is still walking around on house arrest? Three people have already committed suicide over the losses that their funds incurred with him, no doubt with more to follow. Then federal investigators say that they have found NO record that the guy ever bought ANY stocks with their money and they have gone back as far as 1993! Even the Simon Wiesenthal Foundation invested with that prick and came up with a big fat zero. Incorporation laws protect personal assets but fraud-meisters and “ponzi” schemers should have all of their personal assets forfeited to the people that they screwed, including their offshore and Swiss bank accounts. We can not continue to reward people like that by not jailing them. If it were you or me, we’d be doing hard time without a cent to our names.

Also David it is the children that I am concerned about more so. Especially the ones who can not defend themselves. You may say it is the mother in me.

It is hard on a woman when she gets an abortion did you know that some women died of this procedure or the doctor did something wrong and caused her where she could not have children anymore. It effects some women mentally some cases some women heard their baby crying and wonder what it would be like if they let the child live.