Fascinating Comment from Local Bank on Government's Plan


H

honda.lioness

A friend is trying to get his bank to refi his interest only loan. In
an email exchange yesterday, the bank's loan officer wrote, "I just
forwarded a similar correspondence to my boss indicating our office's
anticipated volume increase pending Barack's new socialistic
directive...:) If the government starts to hand out free money, we'll
be there to assist those in taking it. I'm concerned a little however
for someone in excellent credit situation such as yourself.
Everything that I've heard will only affect those borrowers that are
91 or more days past due, facing foreclosure. I have not read anything
intended to help those, that honor their obligations, pay their bills
and live within their means...just the deadbeats. It's a great
country/day and age in which we live:) "

This is a bank with a market cap of under 1B, now down to a tenth of
its market cap high for 2008.
 
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D

dapperdobbs

Very interesting and straight-forward comment by the bank. I am
thinking of buying a principal residence, and e-mailed my financial
person explaining I wanted a pre-distressed homeowner package - a
discount of 40% on price and a reduced rate, on closing. She told me
if I had one, she would finance through me.

Here's some interesting and colorful history I stumbled upon
(inspirational reading, and very clear-cut):

http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=aa49
 
L

Logic

A friend is trying to get his bank to refi his interest only loan. In
an email exchange yesterday, the bank's loan officer wrote, "I just
forwarded a similar correspondence to my boss indicating our office's
anticipated volume increase pending Barack's new socialistic
directive...:) If the government starts to hand out free money, we'll
be there to assist those in taking it. I'm concerned a little however
for someone in excellent credit situation such as yourself.
Everything that I've heard will only affect those borrowers that are
91 or more days past due, facing foreclosure. I have not read anything
intended to help those, that honor their obligations, pay their bills
and live within their means...just the deadbeats. It's a great
country/day and age in which we live:) "

This is a bank with a market cap of under 1B, now down to a tenth of
its market cap high for 2008.
Guess the capitalist tailspin was even more injurious than we realized.

L
 
H

HW \Skip\ Weldon

Guess the capitalist tailspin was even more injurious than we realized.
Either that, or the expansionary cycle that preceded this contraction
lead to erroneous expectations. The correct answer may turn out to be
a little of both.

My observation is that our current contraction is merely correcting
the extremes of the expansion that preceded and created it. It
follows that the depths of this contraction to-date can be explained
by the degree to which we must go to wash out those extraordinarily
overly-optimistic expectations. After all, that's the purpose of
cycles: to correct extremes.


-HW "Skip" Weldon
Columbia, SC
 
G

Gil Faver

HW "Skip" Weldon said:
Either that, or the expansionary cycle that preceded this contraction
lead to erroneous expectations. The correct answer may turn out to be
a little of both.

My observation is that our current contraction is merely correcting
the extremes of the expansion that preceded and created it. It
follows that the depths of this contraction to-date can be explained
by the degree to which we must go to wash out those extraordinarily
overly-optimistic expectations. After all, that's the purpose of
cycles: to correct extremes.
and the gov't and fed's actions to prevent the last couple of corrections
allowed the extremes to become even more pronounced, and thus the current
correction more severe.
 
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H

honda.lioness

Gil Faver said:
and the gov't and fed's actions to prevent the last couple of corrections
allowed the extremes to become even more pronounced, and thus the current
correction more severe.
With the benefit of 20/20 hindsight, I also theorize that the cutting
of interest rates--so as to respond to what, a stock market due for a
correction?-- was a mistake. But how in the future would an elected
official convince his/her fellow elected officials that corrections
are a good thing and should not be fought? One could argue history,
but I think there are too many who get drunk with the promise of
wealth that grows fairly quickly over a matter of years.

I am mentally writing off my bank positions as a total loss and moving
forward.

Poster "Logic" said it really well. I am apalled at how this bank
official spoke, as if his bank was a responsible institution and had
nothing to do with this nascent second Great Depression. As if the
banking industry had not become one of the biggest welfare clients,
hands outstretched just like any homeless person. Bad as it is for my
measly bank positions, I can now support socializing them. Screw them.
 
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