Why Even Cheaper Oil Is Grim News

Sep 16, 2008 Full story: www.businessweek.com 46
The sharp drop in crude prices is further fallout from the Wall Street crisis and evidence of economic weakness. Full Story
First Prev
of 3
Next Last

“The Voice of Reason”

Since: Mar 07

www.legconsol.com

#41 Oct 18, 2008
YOOPER wrote:
<quoted text>
Banks were not even required to verify in many cases. Blaming it all on the banks is so rediculous. People that take out loans, knowing they can't afford them, is at the heart of the problem. "Responsibility". ACORN contributed to this by suing Citicorp to force them to loan to people that couldn't afford it. How did the banks rake in the money? A lot of these loans were with no down payment. If they were raking in the money, we wouldn't be bailing them out.
Are you serious???!!! Banks aren't required to verify??

Doesn't your employer verify your previous employment before hiring you? And that's to make money.

If they don't have to verify, why ask???
Telmark

Paradise, CA

#42 Oct 19, 2008
Young Thunda writes;
"Are you serious???!!! Banks aren't required to verify??"

How do you think illegals buy homes? The answer is a lack of verification.

Quote"
"Doesn't your employer verify your previous employment before hiring you?"

How do you think illegals get jobs? The answer is a lack of verification.

The same goes when they rent housing, collect free healthcare, enroll their undocumented children in our public schools, etc.

Since: Feb 08

Cany

#43 Oct 19, 2008
Well I think the article is a little superficial for sure, but it's not like everything the article tries to imply is wrong. The inflation is positively related to GDP growth and that in the US, the inflation is highly correlated to the oil price so natrually, when oil price is coming down, it lowers the inflation but on the other hand, gives the economy a worse outlook for the future. But on the other hand, it's not really that directly related, and the lower oil price doesn't directly lead to a economy slow down. The thing is quite simple, the oil price is up simply because of the credit bubble over the last few years and not really because of the much higher demand of oil than supply so what I think of the current situation is, that as long as US government is able to settle down all the bad debts, the economy will recover, the oil price won't drop further lower but won't rise steeply either until a bigger credit bubble bursts out and destroy the US economy as a whole.

“The Voice of Reason”

Since: Mar 07

www.legconsol.com

#44 Oct 19, 2008
Telmark wrote:
Young Thunda writes;
"Are you serious???!!! Banks aren't required to verify??"
How do you think illegals buy homes? The answer is a lack of verification.
Quote"
"Doesn't your employer verify your previous employment before hiring you?"
How do you think illegals get jobs? The answer is a lack of verification.
The same goes when they rent housing, collect free healthcare, enroll their undocumented children in our public schools, etc.
You're twisting the issue. Apples and oranges.

If I was planning to lend you 200,000 and I didn't know you, would I take your word for it that you could afford to pay me back, or would I verify it???

That's the heart of the matter. Banks have a system called underwriting that is suppose to examine if an applicant can AFFORD to pay a loan back.

Crying foul and saying the applicant lied on an approved loan after the fact doesn't negate the fact that the banks were suppose to verify the information.

Not because it is required by law, but because it is good BUSINESS sense.
Telmark

Redding, CA

#45 Oct 20, 2008
Young Thunda writes;
"Not because it is required by law, but because it is good BUSINESS sense."

The issue is that a lack of verification was and still is a big part of the problem.

Quote;
"You're twisting the issue. Apples and oranges.

I only answered your questions with the truth. BTW, I'm against any and all "non verification" when it comes to loans, jobs, rentals, healthcare, public schooling, etc. Everyone, without exception, must pass the same verification process.
Say the Truth

Wallingford, PA

#46 Oct 20, 2008
Young Thunda wrote:
<quoted text>
You're twisting the issue. Apples and oranges.
If I was planning to lend you 200,000 and I didn't know you, would I take your word for it that you could afford to pay me back, or would I verify it???
That's the heart of the matter. Banks have a system called underwriting that is suppose to examine if an applicant can AFFORD to pay a loan back.
Crying foul and saying the applicant lied on an approved loan after the fact doesn't negate the fact that the banks were suppose to verify the information.
Not because it is required by law, but because it is good BUSINESS sense.
No documentation have been around for a long time, but they were secured by high down payments, good appraisals. and high interest rates. These were "non-conforming" which means Fannie or other bans wouldn't buy the loan from the bank. With the relaxation of the rules, Fannie could buy all of the "creative" financing that came about around 5 years ago, so the brokers and smaller banks wouldn't be caught with potentially bad loans since they could rapidly pass the hot potato.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 3
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Financial Markets Discussions

Title Updated Last By Comments
Mutual Funds exposure to bank stocks drops to R... Wed onemilliondollarman 1
Stocks open lower after poor news from Europe Oct 28 shanorie 1
Muni market full of buried treasures (Mar '08) Oct 23 Northside Neuman 3
5 Hated Earnings Stocks You Should Love Oct 21 Onemilliondollarman 2
Study: Mortgage Rates have Domino Effect on Eco... Oct 20 creditrepairhouston 1
Obama: 'Revving' economy calls for higher wages Oct 20 Batch 37 Pain Is ... 131
Wall Street extends moody spell Oct 17 theidiotsareunited 1

Financial Markets People Search

Addresses and phone numbers for FREE