Investing Thread

[The Sultan]

That's what I hear

I'm trying to get my legislator to sponsor a bill banning it from churches.

[MU82]

It's woke.

Just like that woke hippie Jesus. What's with all that hair?

[NCMUFan]

Look like you three entertain yourself pretty good.

[MUBurrow]

If the private sector did its job, purchasing, packaging, properly grading and selling mortgage-backed securities ("MBSs"), there would be no need for Freddie and Fannie and the now explicit guarantee of the federal government that come with Fannie and Freddie MBSs.

Freddie and Fannie were created in a different era, when capital was not as fungible as it is today and mortgage markets were largely local in nature. Both Fannie's and Freddie's ever-changing underwriting standards, a reaction to political pressure from Congress, were among the factors that led to the 2008 housing crisis.

I'm not following why you think there is a lower risk of MBS bullshit today than there was in the 90s and early aughts.  The 2018 Dodd-Frank rollback exempted smaller lenders from a lot of the post-recession protections, and I'm extremely skeptical that online-only lenders and mortgage companies are writing substantially safer loans to be packaged as MBSs than the garbage local banks were writing.

[dgies9156]

I'm not following why you think there is a lower risk of MBS bullshit today than there was in the 90s and early aughts.  The 2018 Dodd-Frank rollback exempted smaller lenders from a lot of the post-recession protections, and I'm extremely skeptical that online-only lenders and mortgage companies are writing substantially safer loans to be packaged as MBSs than the garbage local banks were writing.

Candidly, I don't think they are. There is need for some regulation as well as thorough due diligence in the process of packaging and selling mortgages into the secondary market.

Borrowers also need to know what on God's blue-green earth they're doing.

I question why the federal government should be the backstop for bad mortgage underwriting. With Fannie and Freddie, the government is backstopping mortgages on upper-end homes (through the maximum purchase amount) in much of the United States. The private sector can originate, package and sell these loans into the market without the benefit of a government guarantee.

We have the Veterans Administration ("VA") lending and the Government National Mortgage Association ("Ginnie Mae") to deal with veterans and low-income mortgage lending. The private sector secondary market can move mortgages effectively without implicit or explicit federal guarantees, so just let the market do its job and let Fannie and Freddie compete as private entities.   

[TSmith34, Inc.]

I'm trying to get my legislator to sponsor a bill banning it from churches.

Big mistake. Sure, I'm on board with getting rid of all the Jesusy stuff in the New Testament, but why would you want to ban all the wisdom in the Old Testament?

God sending bears to maul 42 children for making fun of a guy's bald spot? That's good stuff right there.

[Pakuni]

God sending bears to maul 42 children for making fun of a guy's bald spot? That's good stuff right there.

The original 100 kids vs a gorilla.

[dgies9156]

God sending bears to maul 42 children for making fun of a guy's bald spot? That's good stuff right there.

Teach those little whippersnappers to make fun of old bald guys!

Guess that proves the Bears are good for something -- certainly not winning football games!

[JWags85]

Big mistake. Sure, I'm on board with getting rid of all the Jesusy stuff in the New Testament, but why would you want to ban all the wisdom in the Old Testament?

God sending bears to maul 42 children for making fun of a guy's bald spot? That's good stuff right there.

"Old baldhead" is one of the sneaky funniest things to read in the Old Testament.  2000+ years later and kids taunts haven't changed a bit.

[MU Fan in Connecticut]

"Old baldhead" is one of the sneaky funniest things to read in the Old Testament.  2000+ years later and kids taunts haven't changed a bit.

Back in the 80's, my catholic high school, Notre Dame of West Haven, the Old Testament was taught kind of like a history class.  The one thing I vividly remember was one of the kings was assassinated while "covering his feet".  The teacher explained that he was going to the bathroom when stabbed.  "Covering the feet" became a perfect line for the sophomoric high schooler brain.

[tower912]

Only 37k jobs added in May.  Since big hiring numbers always roiled the market, this must be good news, right?

[Shaka Shart]

Only 37k jobs added in May.  Since big hiring numbers always roiled the market, this must be good news, right?

Nobody wants to work anymore anyway

[Uncle Rico]

Nobody wants to work anymore anyway

They're all getting those fat Covid checks and staying home

[forgetful]

Only 37k jobs added in May.  Since big hiring numbers always roiled the market, this must be good news, right?

Is that an accurate number, or simply a result of not having enough workers to accurately determine how many jobs were added?

https://www.wsj.com/economy/cpi-inflation-data-accuracy

[Jockey]

Is that an accurate number, or simply a result of not having enough workers to accurately determine how many jobs were added?

https://www.wsj.com/economy/cpi-inflation-data-accuracy

Let's just eliminate the middle man here (Labor Dept.) and just make up numbers. Seems to be a common thing anyway.

[TSmith34, Inc.]

Is that an accurate number, or simply a result of not having enough workers to accurately determine how many jobs were added?

https://www.wsj.com/economy/cpi-inflation-data-accuracy

LOL. Good job, Elmo.

And the government just held back and redacted a report on farm trade because they don't like the conclusion (bigger deficits).

I guess Goose was just ahead of his time in saying the government numbers were no more trustworthy than those out of China.

[Hards Alumni]

Apparently it's going to get higher.  The Atlantic has an article about some flesh eating fly that like kes to eat cattle flesh.  The US using radiated insects unable to breed, over several decades beat it back to the Darien Gap.  It recently broke out and is now back into Mexico already.  It's related to fund cuts and lack of not producing enough irradiated flies to keep in check.  It may take decades to re-beat back provided there is a new concentrated effort from the US Government.

[Hards Alumni]

Candidly, I don't think they are. There is need for some regulation as well as thorough due diligence in the process of packaging and selling mortgages into the secondary market.

Borrowers also need to know what on God's blue-green earth they're doing.

I question why the federal government should be the backstop for bad mortgage underwriting. With Fannie and Freddie, the government is backstopping mortgages on upper-end homes (through the maximum purchase amount) in much of the United States. The private sector can originate, package and sell these loans into the market without the benefit of a government guarantee.

We have the Veterans Administration ("VA") lending and the Government National Mortgage Association ("Ginnie Mae") to deal with veterans and low-income mortgage lending. The private sector secondary market can move mortgages effectively without implicit or explicit federal guarantees, so just let the market do its job and let Fannie and Freddie compete as private entities.   

Because we live in a society.  Libertarians expect too much from people.  There are bad actors, and there are stupid people.  To ignore that these people exist is part of the reason libertarianism sounds good, but isn't realistic.

[The Sultan]

Because we live in a society.  Libertarians expect too much from people.  There are bad actors, and there are stupid people.  To ignore that these people exist is part of the reason libertarianism sounds good, but isn't realistic.

To be honest, it doesn't sound all that good either.

[Hards Alumni]

To be honest, it doesn't sound all that good either.

Oh it sounds great to people who can't think more than one or two steps ahead. 

[The Sultan]

[Hards Alumni]

Assume this is an Elon reference. 

LMAO

[TallTitan34]

I'd sell those Telsa stocks before the 5000% tariff hits.

[Shaka Shart]

[Skatastrophy]

Oh it sounds great to people who can't think more than one or two steps ahead. 

I think it's an extremely idealistic outlook on life. It should be celebrated, being that idealistic, but governance needs to be rooted in reality sadly.