Well said, but what does that have to do with snowesters liking crappy loans?
unregulation or poor regulation = crappy loans I thought that connection was pretty clear?
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What? No gloom and doom about Wall St.
- Thread starter rynokron
- Start date
unregulation or poor regulation = crappy loans I thought that connection was pretty clear?
correct, I didn't mean to state we are in pure capitalism, just that it seems many tend to argue we need to head closer to that direction, then the other direction, which is communism/socialism.
Yep, greed is a powerful tool, sometimes too powerful..... only way to get rid of greed is to get rid of stuff/ personal belongings....
Might want to ask the people of Japan that one.... they went through this 10 years ago.... and still haven't gotten back to their prior levels.
unregulation = crappy loans I thought that connection was pretty clear?
Freddy & fanny were and are regulated. The problem was the regulations were set up to make crappy lones to people who couldn't afford a house.
Sorry I should of said "poor regulation" instead of unregulated then...
Here is the burn.
This country Privatizes Profit but socializes losses.
WTF??
This country Privatizes Profit but socializes losses.
WTF??
M
modsledr
Well-known member
The problem with pure capitalism AND pure communism are the same...human nature (greed) condemns both to failure...but capitalism can be regulated.
The bailout question is an interesting one...for example, the bailout of AIG came with something like 60% ownership in the company and a healthy interest rate (this bailout will be VERY profitable for the lender...ie...the gov't...ie...the taxpayers).
The plan for the financial markets is a little more sketchy and filled with too many potential pitfalls. IF it were to be structured like the AIG deal, then I'm all for it.
This point in history is an UNPRECEDENTED opportunity, if you are in a position to take advantage of it.
If I lend my neighbours money and they dont pay me back does the government swoop in and buy their debt from me ? Hell no ! Screw the banks, they shouldn't even have the gull for asking for help after doing something so stupid. Funny how the banks up here in Canada don't pull **** like that but were gonna end up paying for it too. Just like gas when there is a hurricane forecasted and everything else. Open market is profiteering, gouging or whatever you wanna call it. Those greasy bastards on wall streent and in toronto are a bunch of slimy greedy pricks who are making their livings off of the misfortune of others.
I now know why they took are handguns and assault rifles away up here.
Maybe someone can explain this for my simple mind. From what I hear they are basically bailing out the lenders by buying their "bad" or default mortgages. They are saying they will do this with taxpayer money. They are also saying they will then sell off the collateral and in the end they will break even or even make money. ?????
If I understand this correctly, then will they then reimburse the taxpayer or give them (us) the profits? (ya right).
Why can't the banks that currently hold the mortgages simple sell the collateral as the govt. claims they will do??...and as it states in the contract the buyer SIGNED!! Who will be buying this collateral?? Where will the millions of people live if their homes are sold??
Why not simple bail out the homeowner if they must bail out anyone?
If I understand this correctly, then will they then reimburse the taxpayer or give them (us) the profits? (ya right
). Why can't the banks that currently hold the mortgages simple sell the collateral as the govt. claims they will do??...and as it states in the contract the buyer SIGNED!! Who will be buying this collateral?? Where will the millions of people live if their homes are sold??
Why not simple bail out the homeowner if they must bail out anyone?
M
modsledr
Well-known member
Maybe someone can explain this for my simple mind. From what I hear they are basically bailing out the lenders by buying their "bad" or default mortgages. They are saying they will do this with taxpayer money. They are also saying they will then sell off the collateral and in the end they will break even or even make money. ?????
If I understand this correctly, then will they then reimburse the taxpayer or give them (us) the profits? (ya right
Why can't the banks that currently hold the mortgages simple sell the collateral as the govt. claims they will do??...and as it states in the contract the buyer SIGNED!! Who will be buying this collateral?? Where will the millions of people live if their homes are sold??
Why not simple bail out the homeowner if they must bail out anyone?
The simple answer is this:
With the banks holding all of the undervalued debt, their balance sheets are upside down and they have stopped lending to each other, which in turn keeps them from lending to businesses and to the general public. This is a HUGE driver of the economy. The gov't is not planning on just buying the debt and then turning around and selling it (there's nobody to buy it). From what little I've read about it, they will spend the time to sort it out and will re-finance the bad loans and then sell it all at a later date when the economy and home prices are back on the upswing.
This is SUPER simplified, but hits on a couple of high points as I understand them.
So all the A holes who created this mess walk away with a free pass and learned that no matter how bad they do business that Uncle Sam will bail them out. What happens when all the forclosures start piling up and we are back at square one? The govt. credit card will be maxed out by then.
Not trashing you, modsledr. Just throwing in my .02.
Is it time for me to run around doing my best Chicken Little impression?
Is it time for me to run around doing my best Chicken Little impression?
wait a year or so...
Dude I'm watching the sky now!
I think we are on the very brink, arms are already flapping trying to not fall over the cliff.
I think we are on the very brink, arms are already flapping trying to not fall over the cliff.
Is it time for me to run around doing my best Chicken Little impression?
anybody listen to glen beck?? he makes it sound like the sky is falling.
Ok, I think we all agree this stinks on many many levels.
We are here, it's the past and there is no going back.
To Bail out or not to bail out? This is not a simple answer. It is so complex it's way over my head.
My gut says heck no, my brain says probably yes!!
For me it's an issue of perspective. My next comment is only for a point of referrence not a political position.
In the past 5 year in Iraq we have spent 500+ Billion and over 4000 U.S. lives alone. Not to mention all deaths. We value lives very highly, so what is the true cost???
My point is; We can do something that might be able to stablelize our economy and even the world economy to a large degree.
Just because no one died or thousands of peoples lives are not taken away doesn't mean we shouldn't do what we can.
Again, I'm confused
We are here, it's the past and there is no going back.
To Bail out or not to bail out? This is not a simple answer. It is so complex it's way over my head.
My gut says heck no, my brain says probably yes!!
For me it's an issue of perspective. My next comment is only for a point of referrence not a political position.
In the past 5 year in Iraq we have spent 500+ Billion and over 4000 U.S. lives alone. Not to mention all deaths. We value lives very highly, so what is the true cost???
My point is; We can do something that might be able to stablelize our economy and even the world economy to a large degree.
Just because no one died or thousands of peoples lives are not taken away doesn't mean we shouldn't do what we can.
Again, I'm confused
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