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Author Topic: Home Ownership and Wealth Building  (Read 116577 times)

A.

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Re: Home Ownership and Wealth Building
« Reply #1290 on: August 15, 2007, 08:52:25 PM »
Lol the day an outsider owns the largest bank in America will be the day we are no longer a hyperpower.

A.

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Re: Home Ownership and Wealth Building
« Reply #1291 on: August 15, 2007, 08:55:48 PM »
Besides, we prolly only have 20-25 years left.

 :-\ fukkin Bush

Denny Crane

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Re: Home Ownership and Wealth Building
« Reply #1292 on: August 15, 2007, 09:02:47 PM »
Lol the day an outsider owns the largest bank in America will be the day we are no longer a hyperpower.

I thought CitiGroup was the largest by assets.
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Denny Crane

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Re: Home Ownership and Wealth Building
« Reply #1293 on: August 15, 2007, 09:04:05 PM »
Lol the day an outsider owns the largest bank in America will be the day we are no longer a hyperpower.

That day is not far away.  Chinese sovereign funds are huge and they need a home. 

Besides, we prolly only have 20-25 years left.

You mean 20-25 years left in our dominance?

I don't think so.  China's still growing so fast because it still has room to grow fast.  Also, there are too many domestic problems in China that will prevent it from overtaking the US.  It will be a very challenging rival, no doubt, but won't overtake us.

ETA: Actually, I think you meant that China will have the largest bank, right?  I think international bank penetration into China will be extensive enough for this not to happen either, though in total China may have the most assets (though this won't be for a long time since it's still such an impoverished country).
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A.

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Re: Home Ownership and Wealth Building
« Reply #1294 on: August 15, 2007, 09:06:09 PM »
Lol the day an outsider owns the largest bank in America will be the day we are no longer a hyperpower.

I thought CitiGroup was the largest by assets.

By assets, yes.  By deposits and coverage, no.

Denny Crane

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Re: Home Ownership and Wealth Building
« Reply #1295 on: August 15, 2007, 09:25:11 PM »
Lol the day an outsider owns the largest bank in America will be the day we are no longer a hyperpower.

That day is not far away.  Chinese sovereign funds are huge and they need a home. 

Besides, we prolly only have 20-25 years left.

You mean 20-25 years left in our dominance?

I don't think so.  China's still growing so fast because it still has room to grow fast.  Also, there are too many domestic problems in China that will prevent it from overtaking the US.  It will be a very challenging rival, no doubt, but won't overtake us.

ETA: Actually, I think you meant that China will have the largest bank, right?  I think international bank penetration into China will be extensive enough for this not to happen either, though in total China may have the most assets (though this won't be for a long time since it's still such an impoverished country).

20-25 years left in our dominance.  No doubt in my mind about it. The change in their international influence in the last 5 years alone is unbelievable.  No country has ever, in the history of the world, grown so fast -- economically and in terms of intl influence. Ever.  And they haven't even started yet.

As for their so-called domestic problems, they only have one -- the problem of internal migration from country to city.  The rest of it -- democracy, etc -- is just a bunch of hooey hyped by american cable news. 

I wasn't even thinking about politics or culture when I was talking about their domestic problems.  I was more focused on population size and environmental degradation, not to mention ever-increasing competition between them and India for resources, and the three-way fight between China, India, and Japan for regional supremacy, with Russia as the wild-card. 

The US has and always will have the blessing of geographic isolation and regional stability.  China will never have that.

Also, China doesn't even come close to reaching the productivity and innovation of the US, and the products they do produce are of questionable (even deadly) quality. 

And while their influence is spreading, it's nowhere near what the influence of the US is.  I very much think the power of China is incredibly overstated.  Even China realizes its own limits, which is why its long-term military strategy is not to develop a military that can defeat the US, but rather one that can cause heavy damage to the US in the case of a US-led invasion on the Chinese mainland.  That's a far cry from the military strategy of a true global power.
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Re: Home Ownership and Wealth Building
« Reply #1296 on: August 16, 2007, 09:26:16 AM »
Maryland Halts Firm's No-Pay Mortgage Offers

By Allan Lengel
Washington Post Staff Writer
Thursday, August 16, 2007; D01

The Maryland attorney general took legal action yesterday against a Laurel company that offered homeowners mortgage-free living through a complex investment program.

POS Dream Home, which also operated as Metropolitan Grapevine, along with its officers, was ordered to stop soliciting new business and to halt operation of its investment program pending a hearing.

"In the meantime, this company will no longer be able to unlawfully solicit investors and risk the potential loss of their money," Attorney General Douglas F. Gansler said in a statement.

However, it can continue to run "legitimate operations," said Raquel Guillory, a spokeswoman for Gansler.

Gansler said the company failed to register with the state Securities Division, in violation of state law, and operated a program that potentially posed serious risks for investors.

Reports about the Dream Home operation appeared in The Washington Post over the past two weeks.

It was the second time in six years the state attorney general had ordered one of the key players, Andrew H. Williams, chief executive of the two companies, to cease operating a securities business in the state.

Williams could not be reached for comment yesterday. Neither could Laveda Whitfield, an agent for the company.

However, Williams defended his operation in an interview earlier this month with The Post. "If everybody knew about our program, everybody in the world would be running in to get this great deal," he said at the time.

Last year, Williams's new company began inviting investors to seminars for "reduced-time mortgage payments," according to the attorney general's cease-and-desist order.

Home buyers agreed to take out loans, then turn over 10 to 15 percent of the money to the company, according to that order. Additionally, the buyers gave the company another $5,000.

In exchange, the company agreed to invest the money in automated teller machines, credit card readers and other "revenue generating devices," and use profits to pay off the mortgage in five to seven years, as well as donate money to charities.

Then at the end of that period, the homeowner agreed to give the company 50 percent of the total equity in the home.

The attorney general's office said the company failed to disclose to investors financial statements, operating expenses or proof of investments, leading to concerns it may not have ever invested the money to create profits to pay off mortgages.

Instead, it left open the possibility that the company used payments from one investor to pay mortgages of others, a practice known as a Ponzi scheme that can end up burning investors further down the chain.

"There is a great risk of loss of investors' money where there is no demonstrated source of income except other investors," Gansler said. "In a climate of rapid change in home values, a program like this can increase risks to lenders and home owners."

Guillory said it is unclear how many investors were involved and what will happen to them. However, the company has claimed that 700 houses are in its program.

In 2001, Williams and others operated a company, BGI, that solicited as much as $3 million in investments for ATMs in what then-attorney general J. Joseph Curran Jr. characterized as a possible Ponzi scheme.

In that case, Williams's company never used investors' money to invest in the machines, Curran's office said at the time. Instead, investor money went to pay off other investors. Williams, his company and another executive consented to the order without admitting or denying wrongdoing.

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/15/AR2007081502336.html?hpid=sec-business

One Step Ahead

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Re: Home Ownership and Wealth Building
« Reply #1297 on: August 16, 2007, 09:27:25 AM »
playa hatas

smujd2007

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Re: Home Ownership and Wealth Building
« Reply #1298 on: August 16, 2007, 09:52:48 AM »
Dang.  That's some complicated stuff that I never would have thought of . . . sounds like it would have been a good option for some, though.
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A.

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Re: Home Ownership and Wealth Building
« Reply #1299 on: August 16, 2007, 09:53:53 AM »
Dang.  That's some complicated stuff that I never would have thought of . . . sounds like it would have been a good option for some, though.

I don't think it would have been a good option for anyone.