Nigeria Seeks to Step Their Game Up to a Much Higher Level w/ a Worldclass Coach

Well my long lost uncle who just happens to live in Nigeria emailed me saying that if I send him $500 he will explain the whole thing to me.

If I were looking for a way to steal billions of whatever the local currency is, with absolutely no risk at all, there's no better model than Fannie and Freddie.

Here in our country they pocket ALL profits and the taxpayers pay for ALL loses.

The odds are better than Las Vegas, or prostitution, and the work is more pleasant for the thieves.

'....and the work is more pleasant for the thieves.....'

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I think this is an important consideration, but 'pleasant' is pretty subjective, especially if there is no experience for comparison. This makes the assessment unreliable. It is important enough that it demands a more reliable basis for comparison.

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How about a law that requires those at FNMA to work a week each month as a Las Vegas prostitute....but not any prostitute, something really special, say as partner in a team to bring the elusive 'donkey show' to well scheduled reality?

From what I understand of the average income level in Nigeria, if the government decides to completely use our model, and pressures banks into writing loans to people that can't pay it back, this looks like a nonstarter.

They first must get the hard working people of the country to drive their currency into the primary global currency; then they can steal $100s of billions.

If the rest of the world didn't come to rely on the US dollar, we would have crashed and burned long ago. We're running out of rope on our tricky accounting methods and penchant for creating new money out of thin air.

As I have explained to you before, our government did not "pressure banks into writing loans to people that can't pay it back".

That was done, as I have explained before, by unscrupulous bankers, lobbyists and attorneys, following the repeal of laws separating the types of banks that could swindle write lucrative consumer home loans.

The only pressure applied here was pressure applied by paid lobbyists hired by the bankers to allow them to screw the public.

The loan writers and criminal appraisal vultures defrauded the public and perverted the American dream of home ownership.

You are pretty spot on saying unscrupulous bankers, lobbyists, and attorneys have a good portion of the responsibility.

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To be fair though, some aspects of the enforcement of the CRA and ECOA did pressure depository institutions, specifically those who had alt-a and nonprime operations to extend to extend loan flexibility that was available (and generally affordable) to higher income borrowers (who have more disposable as % of income) to nearby lower income borrowers who ended up being less able to keep current. That is clearly an example of government forcing banks to make loans that some will not be able to repay. In the grand scheme though, that is fairly minor, so your assertion is valid even if not exactly correct.

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Also, although there were some unscrupulous loan originators, those were pretty few and far between and really pretty stupid. There was no reason to cheat the system, the guidelines were so loose and getting looser over time.

It is also important to realize that the loan originators were not creating the programs. The programs were being created essentially by securitizers. Loan originators get a lot of the flack, but they didn't expand LTV available on programs that assured the borrower would not be asked for income documents and that the number they stated would be taken as fact, nor the later programs which required no entry on the 1003 for income or occupation. At the height there were loans to 100% value on investor properties that insisted no statement or documentation of employment or income or assets be in the file. If you are a loan originator paid commission and the wholesale or correspondent reps make this available to you, it doesn't make you dishonest if you arrange loans for those investors and make hay while the sun shines.

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The real culprit for both the run up and subsequent crash was the getting everyone to accept the idea that because the various unratable most risky tranches pooled to create CDOs would be sufficiently uncorrelated to allow large swaths of rated credit tranches carved out. This is really an amazing trick because it is no secret that even completely uncorrelated asset classes will move in a highly correlated way when there is a crash ....which is exactly one of the things that shouldn't be overlooked in evaluating credit worthiness.

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Without CDO's there probably wouldn't have been a crash....or at least it wouldn't have happened for another decade or so.

You didn't read my links, did you?

http://cr4.globalspec.com/thread/87162/Former-Fed-Official-Apologizes-For-QE#comment980631

Sorry Lyn. The facts are out.

Yes, what the banks did was unscrupulous...but the entire scheme was dreamed up by your government.

Well........................................yeah, I did.

The problem is the "analysis" was done by the:

American Enterprise Institute - Wikipedia, the free encyclopedia.
There's no bias there, right?

No. I think your blinders keep getting in the way. Sites that end with .gov, are government websites. Here's the one where the government came up with the idea for the banks to start selling mortgage backed securities. Do you know why?

It was the government's idea, as a way for banks to be able to absorb the losses from loaning to people that couldn't pay....just bundle them, and the defaults will just get blended with everything else. Brilliant!

http://cr4.globalspec.com/comment/980613/Re-Former-Fed-Official-Apologizes-For-QE

When a bank can sell mortgage loans that are underwater for a profit..... there is something wrong here.

There's a lot wrong here. The problem is who has to assume the ultimate risk? Not the banks. Not Fannie, Freddie or the banks. Not Congress. Not...................................

You did. I did.

Where THE BUCK really STOPS at.

They wouldn't really need to supplant the dollar at the world reserve. Investors would of course be needed.

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As long as they could repeat the neat trick of convincing everyone to agree that it is not a Ponzi scheme to pool the most risky un-rateable tranches of FNMA/FHLMC CMOs along with the most risky tranches of private securitizations and cut out through a new resecuritization (CDOs)huge portions much of which is claimed to be prime and most is rateable, then you can bilk as much as people are willing to invest.

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If you have CDOs, you've got tulip bulbs. CDOs really were central to the entire bubble and crash. Those re-imagined collections of the most risky (and relatively unsellable without being transformed in CDOs) portions of the original loan securitizations were what took the brakes off the funding. Without having to find investors for the most risky portions, and only having to continue blending those most risky portions then claiming most was AAA and just stuffing whatever risky part didn't sell into yet another endless series of new CDOs, it was off to the races.....you could get anything funded....and eventually that is exactly what happened.

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Just before the market started to correct in 2007 the CDOs (which remeber are the collections of all the riskiest unrateable tip portions of the repayment) totaled well over a trillion dollars in value. Something like 1.3 or 1.4 trillion dollars in originally unsellable bits that couldn't even attain a 'D" credit rating that were passed off as much better when blended with other similarly risky assets and resliced sold as highly rated credit. Crazy.

I don't get the joke. http://cia-world-fact-book.findthedata.org/l/941/Nigeria look for yourself, its a 3rd world country and everyone there is broke except the people in the government that steal oil revenue from the citizens its suppose to serve. GDP/capita recently was $2600, these people aren't mortgage holders. no one will buy bonds to support real estate there!

All valid points, except the very last....

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'....no one will buy bonds to support real estate there!....'

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Each minute a future replacement for just such an investor is brought into the world.

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In truth, the funding will probably start as foreign aid, IFC loans, and the like. Then some investors will be sold on the idea that the original seed money will create jobs and demand for more houses.....off to the races.. maybe.

The person who coined BRIC - Brazel, Russia, India and China, and then BRICS with the inclusion of South Africa is now suggesting MINT. Mexico, Indonesia, NIGERIA and Turkey.

"According to a paper published in 2005, Mexico and South Korea were the only other countries comparable to the BRICs, but their economies were excluded initially because they were considered already more developed, as they were already members of the OECD.The same creator of the term "BRIC" coined the term MIKT, that includes Mexico, Indonesia, South Korea and Turkey; more recently, in 2013, he endorsed the term MINT, which replaces South Korea (now regarded as already developed) with the growing economy of Nigeria". (Wikipedia - BRIC explanation)

I personally use the delete button when it comes to the deals to end all deals, but somewhere in there, there maybe a changeover point even for Nigeria.

Programs are only as good as the people administering them!

If you have people of character, integrity, humility, honesty and the motivation to SERVE their constituents the program has a good chance of being effective.

If you don't have those kind of people in place .... The results are clearly evident here in this country. Here we have, for the most part, on both side of the political aisle, and especially in the administration of bho, liars, cheats, self-serving white-collar thieves who should be enjoying tax funded accomodations at Sheriff Arrapyo's jail in Arizona; sandwiches, cots, no a/c, no TV.

don't sugarcoat your feelings, tell us your true opinion

'....Programs are only as good as the people administering them!....'

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So, Buddha, Mohammad, and Jesus are administering an ethnic cleansing program.....

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(sounds like the lead in to a good joke. anyone know the punchline?)

But they were all turned back at the border with Canada. No green cards.

Luckily for most off us in the US since we don't share their ethnicity.

Yes and it's under the new Boko Haram Bank.

Looks like the well known former web scums of Nigeria were upgrated right to government level. Greetings, Nigeria, welcome to the developed countries world. S.M.