View Full Version : Banking Reform

June 26, 2010, 08:02
Rant on.

I sat down and actually read the recently issued "banking reforms" being put forth by Barney Fag, Chris Dud and Dear Leader Obongo. I'm sorry guys, but, I almost puked. The great social experiment needs to end now. You don't lend to people who can't/won't pay it back. It's just that simple. The definition of idiocy is doing the same thing again and again and expecting different results.

I guess Dud is moving on. He's seen the handwriting on the wall. We need to get the other 2 foxes out of the hen house ASAP.

Rant off.

Have a nice weekend.


P.S. I almost wish old dumbass Bill was still around. Surely, this post would garner a thought provoking and insightful rebuttal. Nah..... just a diatribe. Anyway, I found his smug infantile rants amusing at times. He was kind of like a mean version of Otis from the old Andy Griffith Show.

June 26, 2010, 09:32
You read almost 2K pages of text?? The bill does end no documentation loans...

June 26, 2010, 12:32
Admittedly, I read an executive summary. I actually am a wage slave and don't have the time to read 2000 pages of bill. What I am amazed by is that the perpertrators (Frank & Dodd) of the last meltdown have positioned themselves as bystanders and heroic saviors.

Fannie and Freddie are still not under control.

It still lets people in the door with no money down and deems a mortagage at 36% of gross income to be reasonable.....

The question of securitization still bothers me. If you underwrite with the intent of immediately selling off your risk, what will change?

If you underwrite and have to hold the paper for 5 years before any sale is permitted, you'll better vet the applicants.

My opinion.


L Haney
June 26, 2010, 13:39
Originally posted by Kevin

If you underwrite and have to hold the paper for 5 years before any sale is permitted, you'll better vet the applicants.

My opinion.


Good one, Kev. That'd put a stop to a whole bunch of shenanigans. Or, you (a bank) underwrites a long term note, you gotta' hold it forever. Use it for collateral if it's performing, discount the amount if it's not. Put some sanity back into this mess.

June 27, 2010, 00:47
The bank reform bill does not address the problems that caused the giant sh1t storm, namely securitization of loans, Allowing the insurance contract on a loan or security defaulting to be seperated from a loan so that the owner of the note or security does not receive benefit from it. Fractional reserve lending needs to go away as well. The only thing that we are getting is extra fees for the government and more paper work for the banks all of the costs of which will be pushed on to the consumer, widows, orphans, and those hoping to save for retirement.


June 27, 2010, 11:46
I see that as well. More toothless oversight. More fees that add no value and detract from the ability to personally profit from YOUR money.

The tick is going to end up being bigger than the dog.....

I think I'll go mow the yard......