Goldman Sachs Seizing Homes Subprime Mortgages Bought

McClatchy:

Goldman spent years buying hundreds of thousands of subprime mortgages, many of them from some of the more unsavory lenders in the business, and packaging them into high-yield bonds. Now that the bottom has fallen out of that market, Goldman finds itself in a different role: as the big banker that takes homes away from folks such as the Beckers.

Read the whole story: McClatchy

Comments

[JScott]

Hmmm now I know why some folks trash their houses when they get foreclosed, in a way it's giving their (corrupt) lender the index finger (aka f**k you).

[StickMarket]

Why is education & health care still so expensive for so many, especially in the 'most prosperous nation on earth'? WHy are there no jobs? Why no unemployment extension?
good articles; http://financeopinionss.blogspot.com

[jalowe1957]

I closed my Citibank accounts and moved them to a credit union. How's that for flipping the American Eagle?

[CDCtrading]

Economic policy needs to change. For the past 30 years only the top 1% of earners have been the major beneficiaries of economic recoveries while everyone else lags. We need policies and programs that will hlpe low and middle income people. More shovel ready projects. Universal health care

good articles; http://financeopinionss.blogspot.com

[sloreader]

Bear with me while I break their business plan down just a bit........ 1. originate loans which should never have been originated... take unjustified bonuses; 2. Shred and sell what should be categorized as junk bonds to their own clientele as high value secured mortgages... take exhorbitant bonuses; 3. Secure billions in government bail-out money for being too big to fail and turn a blind eye toward Main Street.... take outlandish bonuses; and 4. Foreclose on the very same properties they knowingly put into distress and, big surprise.... take more bonuses!

I could go on but I think most people see a recurring theme in all this, i.e., it's not enough to hold the American people up for their hard-earned money, these heartless bloodsuckers think they should be turned upside down and their pockets emptied out while they pat themselves on the back.

[loki]

Sooner or later Wall street and the banks will own much of the properties in the major cities in the US. And just think of the monthly reoccurring profits from rental units. Especially when you get to own title to millions of units that were paid for through payments or paid off for the banks by the Bail Out programs.
Free steady income generating units thanks to the tax payer. Gotta love the Ivy Greed Commie Capitalist. If you didnt, there would be a revolution.
but we are a country of masochists and sadist.
We love to be screwed over and beat like the red headed step child, over and over and over again.

[Oxonian2001]

Unfortunately, America is a country that loves glamour. "We" love our handsome politicians with degrees from OVERRATED universities and their wives in OVERPRICED clothes (notwithstanding an occasional "inexpensive" outfit to say--"hey, we're sometimes like you plebes and proles!"). "We" think Ivy is great even tho' it's pretty much a joke abroad just like we think 4" h00ker heels by Blahnik are wonderful even tho' they're not fit to wear.

Somehow, we're learning that designer schools and designer clothes don't add up: it's just the emperor's new clothes. (Yeah, how's that for transparency?) That's why we're getting so little real change. So long as we vote for the same would-be elites who go to the same schools, belong to the same clubs, shop at the same boutiques, live in the same places with the same overly large house, pat each other on the back, etc. WE AIN'T GONNA HAVE CHANGE!

And we wonder why we're getting a recovery that only LOOKS good. As they say, style over substance don't mean nothin', baby!

[TJCole]

Nationalize Goldman Sachs and break it up...!

That would be Change, I Can Believe in..!

[loki]

Problem is that Geithner and Bernakie would probably break it up appoint the same ivy greed people who caused the problems, to lead all the baby Golden Sachs. Then we would have dozens of minnie Me Golden Sach screwing people every single day all around the world. The would probably do more damage and steal billions more than then under on large Golden Phat Sach.

[dfranz]

This is only step 2 in the pillaging of America. Step 3 is lowering the averge salary of working people.

I don't know about you, but I'm moving my money to a local credit union.

[yemaya]

Our country has been sold to effen vultures.

[martiniandabotoxchaser]

Obama needs to go through his Administration and get rid of all people who have worked for Goldman or Morgan, as does Congress. After doing this there needs to be an independent counsel to look at all elected officials that took money from these firms or employees of these firms. These officials need to be publicly scolded and kept off all financed related committees. Then there needs to be a major investigation into the books of both firms with irregularities prosecuted to the limit of the law.

[holeybuybull]

Why don't you hold the person responsible for putting these people in his administration? Obama has become the teflon don, in your opinion.

[martiniandabotoxchaser]

The most important thing we can now do is get connected people out of the government and prosecute the firms for their illegal actions.

[yankee222]

It's time for Obama to step down. He is afraid to make decisions for fear of continued failure, yet his stunning lack of leadership hurts more than his numerous mistakes.

[research]

"The Greatest Heist"

That's what happened right in front of us.

The very Banksters who planned and caused the crash,

Extorted 27T$ in loans and guarantees from the taxpayers. 1/3 of the WORLD GDP.

The Banksters now control where that money goes.

Banksters would rather invest in leveraged derivatives bets backed by taxpayer backed Fraudulent Credit Default Swaps investment insurance without reserve, CDS.

Bankster don't like to invest in Main Street.

Give more stimulus to MAIN STREET.

Even if you just gave the money to every citizen, it would still end up in the banks!

But it would do great good on the way there.

[WhyAreThingsThe]

The only winners form this recession recovery are Goldman ...great country we live in
hat tip to http://financeopinionss.blogspot.com

get the know

[Vinkaye]

Oh I don't know, I think Jamie Dimon's done quite well too.

[austinro]

This is the company to which we are going to let run the carbon trading market? And you said the republicans hated the middle class....

[research]

Really, Cap and Trade is a banksters paradise.

A 1$ per ton carbon equivalent pollution tax is what we needs, and shift the subsides away from fossils and nukes to 3 cent rooftop solar biochar biofuels, and green tech.

[Rmath]

Off topic a bit there?

LOL

[sixyfivepercentwater]

The nature of these mortgages is that they should never have been allowed in the first place. They wouldn't have been given out if the banks didn't know they could repackage them and sell them on immediately, which is again something that should not be legal. But the flip side of these loans is that the people who were signing up for them had every reason to know they really could not afford them.

So when it all hits the fan, of course the banks are going to take their property back. To call it "seizing" is just inflammatory. The houses actually belong to the banks.

[Tiggy]

Some of your comment is simply not true! Many many people could in fact afford the initial loans, what they could not afford were the increases from the ARMS. In fact, many persons were told their increase would be no more than $50.00 per year. Some of these buyers were totally mislead. And yes, some flat could not afford the home but were told they could with teaser rates that were not explained as teaser rates.

Some of these people thought they were living the American Dream, never realizing they were being scammed by builders and predatory lenders. And to those who hung on until they lost their jobs through no fault of their own...they do not deserve the blame you casts their way.

[sixyfivepercentwater]

You insist on living the victim fantasy, despite the facts. No matter what the loan officers might or might not have said, the truth was spelled out in the loan documents. Anyone who signed for a loan without making sure they understood what they were signing was irresponsible. That includes understanding the nature and scope of the ARM they agreed on, and the reason they were such poor credit risks that they couldn't get a fixed rate loan. Whether the rates were explained as "teasers" is neither here nor there. The truth was in the paperwork, and the homeowners signed the papers.

I'm not "casting blame." I'm trying to point out that adults are responsible for their own actions. This desire to find someone else to blame is infantile.

[yemaya]

exactly, blaming the victim is so easy.

[sloreader]

They repackaged and sold the sub-prime mortgages immediately because they knew they were bad from the get go. I agree they should have to own 'em if they want to originate 'em (at least for several years).

[dnpvd51]

Sounds good to me.

The house goes into foreclosure, the price comes down and then the next buyer can buy the house at a realistic price.

[sixyfivepercentwater]

That's not how it works. Too many houses in a neighborhood go into foreclosure, which lowers the values of the entire neighborhood, ensuring that no one can afford to sell. People who cannot sell their house cannot buy another one, and the entire housing market grinds to a halt.

[dnpvd51]

When the house goes into foreclosure someone is selling, and when the price is realistic there are buyers.