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UncleNasty -> RE: Commercials that stretch the truth!!! (2/8/2009 1:15:01 PM)
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quote:
ORIGINAL: housesub4you What about all the Di-tech ads for home loans....They are owned by GM, if they have money to lend for home loans, why do they need a bailout. I just love how 1 paper towel can clean your whole kitchen and not even rip, it's the quicker picker upper....yea...and I have a bridge I need to sell You're under the erroneous assumption that banks are lending their own assets. That is far from the truth. Banks typically lend only their credit, actually borrowing the money from another source and passing it onto the consumer under terms more favorable to themselves. Or they have the loans sold before they are even made - pre planned securitization if you will - and merely "borrow" from a very temporary "warehouse" lender until the sale of the loan into the MBS pool can take place, a period as short as a day or two, and rarely over 30 days. An understanding of what is, and is not, would also be a good idea. Mostly we're talking about paper that is printed at a whim, or digital entries. Uncle Nasty
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