Matt Padilla's book Chain of Blame.

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graphrix_IHB

graphrix_IHB

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I have a blog post coming out on Monday on <a href="http://www.amazon.com/gp/product/0470292776/">Matt's book Chain of Blame.</a> I was curious to what people are thinking on this book. And, this can be the thread where it can be discussed. I hope many IHBers buy it and read it, because it is great book on the historical perspective of the subprime world. I also think there needs to be an intelligent local based discussion about it, that unfortunately the nutter posters over at the OCR are incapable of.



Let me know what you think. And, yes... I know this is the Irvine RE thread, but so much of the book focuses on how Irvine was the mecca of subprime, I thought it deserved to be here.
 
I'll probably read it about 2017 when I can look back and laugh about it.



It's kind of like reading Liar's Poker. If you were one of the people screwed over, Liar's Poker wouldn't have been a good read.



IMHO, the bubble players have screwed us all.



BTW, I read the little excerpt on the blog today, frankly, Ms Bayer makes my blood boil. All I can think of is dereliction of duty. Meanwhile, back at the ranch, the Fannie & Freddie rescue plan swings into action, on the fly, off the cuff, things this administration does so well. </sarcasm>. Maybe they'll send FEMA in.



It's like on Jim the Realtor's blog (which I love), talking about if they can actually get the mortgage bail out streamlined many homeowners will stay in the home if they get their loan reduced and the payment down to what they can afford. GRrr. I don't understand why that is even a discussion point, if I get a BS loan for a Ferrari 599, nobody is going to think I should get to keep it for what I can afford to pay. </rant>
 
[quote author="No_Such_Reality" date=1216073630]GRrr. I don't understand why that is even a discussion point, if I get a BS loan for a Ferrari 599, nobody is going to think I should get to keep it for what I can afford to pay. </rant></blockquote>


See... what you should have done is bought a house a long time ago, HELOC'd it to the max, and bought two Ferraris with the proceeds. Then just mail the keys (to the house) back to the bank. In a year you would have two cars worth more than the house you walked away from. Only in America I tell you.



<blockquote>Maybe they?ll send FEMA in.</blockquote>


Hank "no longer contained" Paulson is on it. Not sure which is worse...
 
[quote author="No_Such_Reality" date=1216073630]



BTW, I read the little excerpt on the blog today, frankly, Ms Bayer makes my blood boil. All I can think of is dereliction of duty. </blockquote>


I kinda felt that way also. In my jobs, I try to not cut corners and deliver the best product. In some cases that product HAD to work each and every single time. I've left jobs before that were FORCING me to half-ass the products. Especially ones were an incomplete product would cause harm to the end user.

[shakes head]

Oh well

-bix
 
Me too Bix, and I've also gone along to get along until I can get out. Frankly though I'm discourage by the mainblog, it seems like majority opinion is like the Family Circle Children saying "not me", I was powerless, I just had to go along.



I'll say it again, when you go along, you condone, and you are a contributing part of the problem.



Yes it sucks, but grow some. At least a mugger has to guts to openly rob you.
 
Well Ms Bayer did grow some and did speak out... However, if you've never worked in the financial services sector, then you wouldn't know that compliance officers are not consulted on what brings in the money or what sells or for that matter, which products should be offered.



At the time these "exotic loans" were being offered in mass, there were no regulations that prohibited them. Oh BTW, the likes of First Fed and Downey had been offering them for at least 10 years prior, not to mention World Savings from many years ago. Where have you been???



One compliance officer in a company of 55,000 employees is not likely to change the tide no matter how outspoken... as she was! I worked with her!!!



Grow up folks, we are all suffering the major hangover associated with too much drinkin!!! Too many people drank the jungle juice at the party that was full of Everclear.



People making less than $100k per year were buying homes at $1.0MM and making mortgage payments that didn't even cover the interest. It doesn't take a rocket scientist or a compliance officer to figure out that's a recipe for disaster.
 
Matt's co-author Paul, asked a similar question in his weekly column at National Mortgage News. The replies were all over the map, from what I have been able to determine, is that it all depends on the extent of your experience in the residential real estate mortgage lending industry; and how far up the food chain you've grown.



There's been a direct relationship between experienced vs. inexperienced from all I have seen ... I happen to know many dozens of the people in the book personally, I'm in the book ... and now after two full reads ... <strong>I LOVED the book.</strong> Especially since neither Matt nor Paul were in any of this history nor any of the battles. As observers and not eye-witnesses like many of us, I think they're both great story tellers! I say <em>YOU NEED IT IN YOUR LIBRARY!</em>
 
[quote author="Ms Bayer Speaks" date=1218255144]...

People making less than $100k per year were buying homes at $1.0MM and making mortgage payments that didn't even cover the interest. It doesn't take a rocket scientist or a compliance officer to figure out that's a recipe for disaster.</blockquote>


Yet they did it and she rode along...



'Not me.'



[quote author="Ms Bayer Speaks" date=1218255144]...

Grow up folks, we are all suffering the major hangover associated with too much drinkin!!! Too many people drank the jungle juice at the party that was full of Everclear. </blockquote>


Nice pass of the blame, you guys told them it was just apple juice and gave them all alcohol poisoning.
 
I was going to post this .jpg of Matt...



http://img107.mytextgraphics.com/photolava/2008/08/16/padillabook-fjy1i2oi.jpeg



But then I realized the one posted on his blog is totally goofy...



http://mortgage.freedomblogging.com/files/2008/08/matt-and-book-on-koce.jpg



Anyway, <a href="http://mortgage.freedomblogging.com/2008/08/15/blogger-discusses-housing-market-and-new-book-on-tv/">check out the blog post and the video</a>, as goofy as that .jpg looks, he has come a long way in the blogging world and is respected by many.
 
Matt must be a regular member on this site. Just like most of us, he needs to state his opinion.



OK, Matt - what's your screenname? :-P
 
[quote author="Ms Bayer Speaks" date=1218255144]Well Ms Bayer did grow some and did speak out... However, if you've never worked in the financial services sector, then you wouldn't know that compliance officers are not consulted on what brings in the money or what sells or for that matter, which products should be offered.



At the time these "exotic loans" were being offered in mass, there were no regulations that prohibited them. Oh BTW, the likes of First Fed and Downey had been offering them for at least 10 years prior, not to mention World Savings from many years ago. Where have you been???



One compliance officer in a company of 55,000 employees is not likely to change the tide no matter how outspoken... as she was! I worked with her!!!



Grow up folks, we are all suffering the major hangover associated with too much drinkin!!! Too many people drank the jungle juice at the party that was full of Everclear.



People making less than $100k per year were buying homes at $1.0MM and making mortgage payments that didn't even cover the interest. It doesn't take a rocket scientist or a compliance officer to figure out that's a recipe for disaster.</blockquote>


Every now and then one of my daughters likes to explain her behavior with, "But Lauren did it", or "Amanda's mom let's her". It sounds only a little less stupid when one of my daughters says it.
 
On Calculated risk, there was a poster who compared tort law

to the toxic products offered by the greedy stupid lenders.



He has a point. Toxic tomatoes (actually, they weren't) were

hustled off the shelves in no time. Defective or toxic products

are successfully sued about all the time.



I guess this would be a hopeless mismash of contract and tort

law, but the guy had a point.
 
[quote author="lawyerliz" date=1218950501]On Calculated risk, there was a poster who compared tort law

to the toxic products offered by the greedy stupid lenders.



He has a point. Toxic tomatoes (actually, they weren't) were

hustled off the shelves in no time. Defective or toxic products

are successfully sued about all the time.



I guess this would be a hopeless mismash of contract and tort

law, but the guy had a point.</blockquote>


A ferrari is a wonderful machine. Give it to an idiot that doesn't shift it out of first and eventually they'll blow the engine.
 
[quote author="No_Such_Reality" date=1218975263][quote author="lawyerliz" date=1218950501]On Calculated risk, there was a poster who compared tort law

to the toxic products offered by the greedy stupid lenders.



He has a point. Toxic tomatoes (actually, they weren't) were

hustled off the shelves in no time. Defective or toxic products

are successfully sued about all the time.



I guess this would be a hopeless mismash of contract and tort

law, but the guy had a point.</blockquote>


A ferrari is a wonderful machine. Give it to an idiot that doesn't shift it out of first and eventually they'll blow the engine.</blockquote>


[rant]OMG! They give them to idiots more than those who know how to drive. I live near a street that leads to where Ferrari owners would live. I hear the noise of the high RPMs as they are cruising up the street, and it's like nails on a chalkboard to me. I think... shift you freaking moron, how the hell did let you buy the car when they didn't teach you to shift? You don't deserve the car if you don't know how to drive it. I wonder do they like the loud noise or are they too f'ing lazy to tap the paddle to up shift?[/rant]



Back on topic, anyone buy, check out the book at the library, or illegally download it and read it?
 
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