Quote (thesnipa @ Sep 29 2023 01:41pm)
i dont disagree on the banks, it could have easily been a bank by bank issue if they werent repackaged. that was gas on the fire and caused the crash. i just still think the bunk loans were the basis, a lack of due diligence there was the killer. and in small amounts it wouldnt have been an issue, banks would have just gotten houses for them to resell. but when its common practice and those shit loans make up a large amount of the market its game over.
as to the dog whistles i just think thats hogwash. u cant talk about institutions like blackrock or others buying up the american real estate market without sounding like an antisemite because "they own everything" has such a negative connotation. but its a real issue, and thats the only way to describe it. they are buying everything, they'll own america eventually.
:rofl:
If you make a bunch of bad mortgages that does not kill the system. The thing that kills the system is when they are valued and sold at a higher appraised value than is warranted. People start relying on the value of those mortgages to make loans, to predict future income, to do any number of things. But their mere existence is not detrimental since you balance risk and return.
That's why the ratings agencies were the most important part. They were the only ones doing fraud, and in doing so increased the values of the mortgages beyond what they should have been, which is the part that incentivized those bad loans and made.