Thanks Dodd-Frank. You Got Us Again!
A few thoughts and other musings from the finance world. As one who has been in finance for 29 years and has paid close attention to the happenings of the industry and those who presumably have oversight on same, I suppose a tell all book would be in order as there is much to be told. But you would likely be bored so just a few points and you decide. Besides there are plenty of these books out there but unfortunately most come from those who know not what actually happened and have a preconceived agenda.
Briefly the subprime era began in the late 90's at the behest of the Clinton administration and with the blessings of Dodd and Frank as well as many in Congress, Fed Chairman Greenspan and of course Attorney General Janet Reno. FNMA and Freddie Mac were stacked with political operatives with a mandate. Perhaps an admirable mandate but surely not one that works in the real world.
You know the rest if you could breath you received the loan for your mansion and who cares about fundamental underwriting criteria. We will stamp AAA by Uncle Sam on all this paper and who will know? Today everyone knows as the unraveling has been going on for five years and very similar to that of Japan's post 1989 bubble which made ours look tame.
So here we are today and the names Dodd-Frank sit atop the so called legislation designed to solve the financial ills. Let us see, those who helped get this mess off the ground are presumably now going to fix it. Have you noticed neither ran for reelection?
Most telling wouldn't you agree?
As one in the mortgage game for so long I once was proud to so state. Today I feel shame at what these hucksters and pack rats which entered the industry have done to us and have no sense of pride and barely hang on to a dose of professionalism.
Dodd-Frank among other changes have wrought a nightmare in lending of all types. If you do not believe me go and apply for .5 cents at your local bank. Or better still attempt to get a mortgage. This will be an eye opener you can't even imagine.
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