Quote:I agree. What I think it proves is that he is not a "financial guru" as some of his supporters claim. There were many experts at the time telling us that housing was in a bubble and when it popped, the result would be a financial disaster. Trump ignored those warnings. He started Trump Mortgage, he said housing was going to strong for a long time, and within a few months, the housing market started its collapse, taking Trump Mortgage with it.


That's why I'm saying, it's wrong to call him a financial guru.

No its not. If you go through an intersection and the light is green then how is it ur fault id the light was malfunctioning.


U had the fed chair and the head of fannie and freddie testifying under oath that loan persistency wasnt an issue and the secondary market was so flooded with capital looking for paper that u almost had to get a piece of that action.


And there was still relatively little risk in starting a mortgage company to oroginate loans. Most of the paper would be off your books woth the way the market was sucking them up and the problem woth ltv made it harder to write loans once the secondary market collapsed but that just meant that the new business entity might not generate profit.


The real loosers were the hedge fund guys stuck with worthless mortgage backed securities or worse facing infinite exposure to insurance contracts they had written on mbs. Something like that would have wiped out trumps entire empire and thats not what happened.


There are tons of financial companies that rolled back loan origination post the collapse because the business model just isnt as profitable. Thats a wholly different deal than risking your entire market capitalization with mbs and derivatives.

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