What does it mean in this article on sub-prime that TX is under a protective BUBBLE?

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“Ground Zero” Mortgage Crisis 7/14/08

CBS 7 Staff
July 14, 2008

It’s being called “Ground Zero” for the sub-prime mortgage crisis that surfaced last summer.

The savings bank called Indymac in California was overcome with roughly six billion dollars in bad loans.

Loans they made for houses to people who could not afford them.

The scandal has ruined millions of lives.

Texas is living under a protective bubble, however, and depositors here have nothing to fear.

John West, President & COO Community National Bank in Midland, said, “The housing industry in Texas is strong and good. So, I would not worry about a savings bank in Texas. I would worry about a savings bank in California or Florida.”

The FDIC warns more failures are to come, and they’re hiring more people to handle the work.

90 banks are now on their watch list, and they estimate eventual losses at over one trillion dollars worldwide.

considering their loaning to illegals?
More Information on the Role of Illegal Aliens in the Financial Crisis

The Sub-Prime Mortgage Mess and Illegal Aliens

Politically Correct loans and low interest mortgage policies(remember Freddie Mac, Fanny Mae, and anti-redlining?) helped fuel the financial crisis by making race-based loans regardless of the borrowers’ financial status or ability/desire to ever pay the mortgage. Even worse, there is evidence that the core of the problem may have been illegal aliens and the rush by business to get their government guaranteed money, the GOP desire for amnesty because these new homeowners might vote Republican (the Bush-Rove Strategy, see link below), and the Democrats seeking new voters, legal or not.

It is no accident that the bulk of the foreclosures, and thus the financial crisis, originated in California, Nevada, Arizona, Texas, and Florida; states burdened with the most illegal immigrants.
The word is Illegal not undocumented!

  1. Reply
    February 8, 2011 at 7:01 am

    It means the Texas housing market seems to be “strong and good” (to quote the next paragraph) and therefore there don’t seem to be any problems in Texas (at least not yet).

  2. Reply
    February 8, 2011 at 7:08 am

    It means that Texas is fine…The lending laws in Texas especially the ones regarding refinancing are very strict

  3. Reply
    February 8, 2011 at 7:24 am

    Texas is one of the states enjoying a stable market. Lenders were not doing bunch of speculative loans, so there is not a flood of foreclosures on the market causing a glut of inventory and driving down prices.

  4. Reply
    Aberdeen Tyke
    February 8, 2011 at 7:47 am

    What about small time savers? Do they deserve to be sucked under with the bank?

  5. Reply
    catmaninmo II
    February 8, 2011 at 8:04 am

    At best, those who ran these banks should be tried for their criminal acts, not rewarded with a bailout and handed the reins again! In true capitalist markets, failure is can, will, and should result when they are run as they have been. Purging bad business from the marketplace is exactly what capitalism is about…. besides, those running these places, personally made millions. Maybe they should pay that money back too!

  6. Reply
    February 8, 2011 at 8:30 am

    I raised five boys, who are now all constructive citizens (I hope), and the way I raised them was to try to allow them to experience the consequences of their own choices as much as possible, for the learning involved, as almost all people only learn through experience. I feel the “lesson” of a bailout will be “the government will protect me from my mistakes, no problem”, and no one will improve their performance, which will help no one, in the present or in the future.

  7. Reply
    February 8, 2011 at 8:58 am

    NOT TRUE! We are all in this, not just the illegals! If you look at the growth in NV, TX and especially AZ (Phoenix), these are some of the fastest growing cities in America. Investers started buying up new houses by the dozens to try and make a quick dollar, and the greedy banks started handing out these loans to ANYBODY regardless if they could actually make the payments. People (US Citizens) from all over the US flocked to these cities because of this housing boom in these states too. If anything, the immigration laws are causing the very few loans to default. People that have been paying their loans are being deported, how is this good for America??????

    They have found that illegal immigrants are sometimes less likely to default on loans because they buy houses they can actually afford, and they look to buy houses to live in and raise their families in, not to turn around and make a profit.

    Despite the downturn of the mortgage market, a type of home loan has remained surprisingly sturdy: one extended to illegal immigrants.

    For loans more than 90 days in arrears, ITIN mortgages have a delinquency rate of about 0.5%, according to independent estimates. That compares with 1% for prime mortgages and 9.3% for subprime mortgages extended to those with spotty credit histories.

    “Our default level is almost zero,” says Scott Hastings, director of marketing for Citizens Home Loan Inc., a Charlotte, N.C.-based lender that is active in 33 states. The bank has been originating ITIN mortgages for almost two years, and the loans now make up about 20% of the institution’s mortgage business. “It’s an absolutely promising market. These Hispanic families will pay their mortgage before anything else.”

  8. Reply
    Micky....the resurrection
    February 8, 2011 at 9:27 am

    I believe they do. We citizens didn’t make loans to illegals and create this mess, we shouldn’t have to bail them out. Let them suffer the consequences.

  9. Reply
    February 8, 2011 at 10:17 am

    Banks can’t loan to illegals (u dummy)
    This is the only excuse you wanna give for your problem (and others). For your info some illegals have decided to go back to their countries (United states has gotten worse)so might get happy for this info( but really who cares, the U.S. is going to waist more money paying a citizen than a illegal)

  10. Reply
    February 8, 2011 at 10:41 am

    Do the banks deserve to go under? Sure. Is it due to having illegal immigrants as clients? No… and I’m sure even you could admit that after reading and watching the issue on the news. Many more Americans default on their loans than do illegal immigrants.

    Furthermore, you’d have to look at how it would affect the job market if these banks went under. Thousands upon thousands of employees would be out of a job – American employees as I’m sure you well know as most illegal immigrants wouldn’t qualify for the positions at a bank.

    You know, that’s interesting too. You’re always complaining that illegals are taking the jobs in America, but then you want to close down big businesses that employ American citizens. So, which is it? You can straddle the fence for only so long before you fall.

  11. Reply
    February 8, 2011 at 11:02 am

    Leave the undocumented alone!

  12. Reply
    February 8, 2011 at 11:43 am

    No, because the Dimocrats forced banks to make these loans to minority members who were not qualified. The USA govt should get out of the mortgage business entirely! It has already cost US taxpayers $ 200 billion to bail out Freddie Mac and Fannie Mae. Let’s gradually put these two institutions out of business.

  13. Reply
    February 8, 2011 at 12:23 pm

    Yes. They created this mess not the citizens of America. If the situation was reversed I don’t think they would rescue me.

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