Author Topic: #Wikileaks- 2007/08 Housing Crisis- Podesta and Company Figure Out Spin  (Read 587 times)

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Offline ABX

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I just discovered a gem of an email in the Podesta leaks. From 2008, the conversation started out about a SNL skit on the housing crisis that implicated Herb Sandler, and the conversation went on to discuss that they knew the real reason behind the housing crisis. Hint, it wasn't Bush.

::snip::

Quote
...From what I've seen generally reported, it was the option ARMs that all went bad as property values tanked b/c the option to choose the payment disappears once you hit an LTV of 105. In general, they were structured so that you had several years with the option of minimal payment, with the interest shortfall added to the loan balance. When values fell, however, the higher payments kicked in sooner than expected. I think for a lot of those borrowers, it wasn't an interest-rate adjustment generated payment shock but rather hitting the full payment period much sooner than anticipated. To the extent things are getting reported as subprime, it's probably because the media isn't distinguishing between non-traditional loan products and "subprimes." It's sort of just another piece of the misnomer that all subprimes are predatory or that all ARMs are bad.......

https://wikileaks.org/podesta-emails/emailid/33883