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Reply #3: I've looked at life from both sides now, from win and lose and still somehow... [View All]

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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-15-13 11:51 AM
Response to Reply #2
3. I've looked at life from both sides now, from win and lose and still somehow...
I had a relative working for a law firm that was indirectly involved in the mortgage backed securities cesspool. Got paid very well (but lose his job early in 2008, as this stuff was falling apart.) Told his boss there was something very wrong with these deals. Boss replied, "If we don't do it, some other firm will."

Same exact thing that was said at an investment bank when one of their people who went public later raised the issue with them. That guy refused to have his division participate, but he didn't blow the whistle at the time, either. So, he had a little bit of a Pontius Pilate thing going on. Still, he was treated like a saint later because he would not let his division participate.

Everyone knew something was very wrong, from the original lenders to the appraisers who were over-valuing the homes to the lawyers to the accounting firms to the investment bankers who were offering the crap bundled mortgage backed securities to the public. In their way, they were a half step removed from Bernie Madoff, the only difference being he finally got prosecuted and they never will because the bullshit D of J said they broke no laws. Since when is failure to disclose degree of investment risk legal? That has not been the case since Joe Kennedy helped FDR and FDR's Congress write the nation's first securities laws.

On the other side, I had another relative who lost his job right around 2008--coincidence: his employer died--and, due to the economy, could not find work for a year. Has a wife and a young kid in grade school, who was maybe 7 in 2008. Used up all his savings trying not to lose his house because his wife threatened to leave him if he did, and take the kid with her. (She comes from another country and was threatening to take the kid and go live with her family there. My relative could not have even paid for a plane ticket to visit his kid.)

He got two part time jobs. He makes now a litte more than he used to make before his boss died, but is considered an independent contractor now, so no fringes whatever--no health insurance, no sick pay, no vacation pay, etc. Nada, zip.

His wife finally had to get a job, too, but because of language issues, she could only get one at a laundromat. And she is being paid under the table.

Even though interest rates are laughably low now, he is paying pre-2008 rates. He cannot get refinanced because standards are higher and because his wife can't prove income. Yet, in the life of the mortgage, he was late on only one payment--the one just before he got the two jobs. Still, the fuckers will not refinance him, even though he is making more than when he took the loan.

Caught every which way and threatened with losing his kid if he failed. He had a small stroke last year, which I am sure was from the stress. He has health insurance, but the only kind he could afford was lousy. The deductible and co pay are so high, he ended up paying for all the expenses of the stroke himself.

So, I've looked at it from both sides.

As for DU3, only a few days ago, I mentioned that I had used to learn so much here in my early years here, but that level of knowledge and thinking ability is rarely seen anymore. Still, it would be very disappointing if no one lashed into your source's framing of the issues.
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