Showing posts with label VA. Show all posts
Showing posts with label VA. Show all posts

Monday, February 29, 2016

Uncle wants to revive Mortgage Backed Securities.

Mortgage backed securities used to be a $ trillion dollar a year market, up until 2007 that is.  Since 2007 nobody will touch them.  The Journal shows a bar graph of sales over the years and zero sales in any year after 2007. 
   Many people think that mortgage backed securities caused Great Depression 2.0  In the go-go real estate bubble back in the aughts, banks and mortgage lenders needed more money to do mortgages with.  Someone had the bright idea of creating a security, essentially a company IOU, which was "backed" by mortgages held by the bank. These IOU's were sold to gullible investors, by promises of high yield,  and the proceeds used to write more mortgages.  Trouble was, the "backing" didn't mean anything, the IOU holders did not get the right to repossess the properties when the borrowers stopped paying.  And when the borrowers stopped paying, the investors stopped getting paid too.  Investors wised up in 2007 and no more mortgage backed securities have been sold. 
   So banks can do mortgages using their own money, of which they never have enough, or by getting FHA or Fanny Mae or Freddy Mac or VA to put up the money.  But, these government agencies, still suffering huge losses from 2007, all have pretty stiff rules about what kind of mortgage they will accept.  Unless the borrower has a real clean credit record, no deal, no mortgage.
  Now we have Monique Rollins,  deputy assistant secretary in Obama's Treasury Dept saying "We do believe that a reformed asset class could responsibly broaden access for qualified buyers who are not being served today."   Translation: Let's do mortgage backed securities to give the banks money to do any kind of mortgage they like."   Which is what caused Great Depression 2.0.  Not good.  But the Obama administration is in favor.
  Of course, Monique has not explained what she would do to get investors to touch the new model mortgage backed securities.  
  I wonder what a Trump administration would do?

Tuesday, July 1, 2014

We need some scalps

Great Depression 2.0 started six years ago.  I know there was some malfeasance, skullduggery, and just plain stupidity in the big banks.  That crashed the world economy and threw millions out of work. But nobody has gone on trial let alone gone to jail. 
The IRS scandal.  Lois Lerner got retired, she keeps her pension.  Nobody else has been prosecuted or gone to jail.
The VA scandal.  The head of VA retired.  Nobody else has even got their name in the papers, let alone prosecuted or jailed. 
   I say Obama is going easy on this slime.  The banks, the IRS and the VA would work a lot better after jailing their top three levels of management.
   Even GM canned 8 people over the ignition switch disaster.  Are we saying that GM is more hard core than DOJ?

Friday, May 30, 2014


Obama was just on TV.  He started out eulogizing Eric Shinseki, and right then I knew that Shinseki was toast.  Obama finally got around to mentioning that Oh By the Way, Shinseki is gone, but I'd figured that out already. 

Wednesday, November 6, 2013

Women's vote beats Cuccinelli in VA

The VA government election was close, closer than the polls were predicting.  McAuliffe only won by a couple of percent over all. 
  But, according to the TV news today, McAuliffe won the women's vote by 10% over Cuccinelli.  That's margin of victory right there.  If Cuccinelli had carried the women's vote, he would be governor right now. 
Same thing happened to Romney last year.  He lost the women's vote by 10% to Obama. Romney would be president today if he have carried the woman's vote.
    What is it with us Republicans that we turn off the chicks? 
    Is it time to get off the anti abortion thing?  Most chicks remember a scary time when they were single, in school, and feared they were pregnant, and feared not being able to find a safe and confidential abortion.  This memory is unlikely to make them vote for Republicans who campaign on anti abortion platforms.