Zombie, partially correct. Only it was the Martgage companies that (Countrywide, USmortgage or something like that) that were doing those loans. Most banks wont do sub prime, or at the very least they will refer to a sub prime lender. Also, banks have way too many dual checks to allow the lying. Mortgage companies didn't because the lenders and the underwriters were too close of a relationship.

What cause the issues is that theSubPrimes then repackaged all those bad loans (with good ones) worth millions and resold them to investment firms as mortgage backed securities. Then the
Investment companies sold them. When the properties went under so did the underlying securities....bringing everyone down.

What investment companies were heavily involved? Shearson Lehman, Bear Stearns, AIG. Not the Banks. the banks invested with Shearson Lehman, AIG etc.....

No one really did enough due diligence into what was really in the mortgage bundles that were being resold. that was a huge part of the problem. Add to that because of the need for profit to increase stock prices and there was never a real desire to kill the cash cow. However, many people even within AIG brought this to their bosses attention without results.

"Trippster" wrote:

Credit Cards:


Like anything else, if used properly is a very usefull tool. Here are some rules I would encourage everyone to follow.

1. Yes, you need one. Many hotels, car rentals, etc will not do business if you do not have one.

2. Own two of them. That is all. Put one in your dresser drawer in case the other one is stolen. We are talking about major cards (VISA, MC, AMEX) do not keep any store cards.

3. Use it every month. not a lot, but every month. You need to show activity.

4. Never let the ballance be over 30% of your credit limit. High than that reflects negitively on your credit report.

5. Zero balances and high credit limits also reports negitively.

6. Not having one ususally shows up on credit reports as "insufficiant credit".

Most importantly, before EACH AND EVERY PURCHASE ask your self, including this purchase, can I pay off my credit card with THIS MONTHS INCOME? If so, go ahead and use it.

High credit scores are incredibly important these days. Revolving credit (credit cards) are an intregal part of your score.

Credit cards are not bad anymore than guns are. It is all in the application.


and for those of you who do not know me, yes, this is counsel from a professional.

"Trippster" wrote:

Credit Cards:


Like anything else, if used properly is a very usefull tool. Here are some rules I would encourage everyone to follow.

6. Not having one ususally shows up on credit reports as "insufficiant credit".

"Trippster" wrote:

"Trippster" wrote:

Very insightful stuff Trippster, can I borrow your brain for a few years to repair my credit? lol

"SlickVision" wrote:

"SlickVision" wrote:

Very insightful stuff Trippster, can I borrow your brain for a few years to repair my credit? lol

"SlickVision" wrote: