That is incorrect. People not connected with the loans enjoyed an undeserved positive externality effect when the market was pumped up with bad loans. The negative externalities you mentioned are just restoring the economy, and everyone affected by it, to the status quo ante.

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Blade: "more educated and literate people than Justabubba"

Justabubba: "that would include everyone"

http://politicalforum.com/showthread.php?t=27847

Thats just an incorrect assessment of the economy. This boom and bust has left us worse off then we would have been if the loan industry and debtors would have stayed away from risky loans. People ending up on the streets because they can't afford their ritzy home is a lot worse than people living in a cheap home that they can afford even when interest rates go up. At the very least you have to admit the bankruptcies that have arisen from this bust have left the economy worse off.

Proof?

That some people do foolish things with their money is hardly a valid criticism of capitalism. Bankruptcy proceedings are an artifact of the welfare state, not capitalism.

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Blade: "more educated and literate people than Justabubba"

Justabubba: "that would include everyone"

http://politicalforum.com/showthread.php?t=27847

Coming title revisions:

2007: "Why the Real Estate Boom Will Not Bust and How Foreclosures are Technically Part of the Continuing Real Estate Boom, In a Way."

2008: "Why the Real Estate Boom in Distressed Properties Will Not Bust (except in certain local markets) and How You Can Use Leverage to Profit From It."

2009: "Why the Phrase "Real Estate Boom" is Often Misunderstood to Mean Higher Prices and How You Can Pray for Them."

2010: "Why the Real Estate Boom Will Soon Bounce Back and How to Eventually Profit From It."

2011: "Why Did I Have to Write "The Real Estate Boom Will Not Bust Through the End of the Decade" and How Did I Not Realize How Long A Decade Really Is?"

2012: "Oh, Dear God, Please, Please Let the Real Estate Boom Bounce Back... and How You Can Profit From It."

2013: "Please, Please, Just Let the Real Estate Boom Come Back This One Time for This One House and How You Can Break Even From It."

2014: "Why I Am Willing to Accept a Small Loss of 35% On the Real Estate Boom and No Longer Care About How to Profit From It."

2015: "Why Can I Maybe Borrow a Couple Dollars Off You Until the Real Estate Bust is Over?"

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Quote:

"I like to watch the news, because I don't like people very much and when you watch the news ... if you ever had an idea that people were really terrible, you could watch the news and know that you're right."

Frank Zappa

The real estate market does not function to necessarily make you or anyone else money. It functions to correctly price homes. That the market corrects from a frenzied buying spree and price appreciation doesn't mean there's anything wrong with the real estate market or capitalism. I believe it was J. P. Morgan who said "the market goes up, and it goes down." Problem? No problem.

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Blade: "more educated and literate people than Justabubba"

Justabubba: "that would include everyone"

http://politicalforum.com/showthread.php?t=27847

well congratulations on the insight captain obvious

__________________

Quote:

"I like to watch the news, because I don't like people very much and when you watch the news ... if you ever had an idea that people were really terrible, you could watch the news and know that you're right."

Frank Zappa

Hey, come on now, J-B, this is a major step forward for Blade! You gotta give him some credit -

I mean, look what's happened here - this guy's a "conservative", right? And look, he's managed to shelve his sense of "entitlement" in favor of an "external model" -

I mean, this is huge, right?

If only the rest of those conservative clowns would "get it" this way, IMHO we'd all be a lot better off.

So, you know, hats off and a thumbs-up to Blade, right?

We shouldn't be mean to these conservatives, we gotta help 'em get back on their feet again, 'cause I mean, you know, "everyone" falls, right? 'Tain't no big deal. These guys mean well, they're always reminding us about good stuff like national defense and all that, and I mean, you know, if they fall off the horse let's just help 'em back up, 'cause that way we both get to our destination before sundown. Yes?

So what is your point? That you don't think Sachs' employees should make $350K a year? That it should be illegal to sell financial services?

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All you need to know about the energy crisis:
ANWR Exploration Republicans: 91% Supported. Democrats: 86% Opposed.
Coal-to-liquid R's: 90% YES. D's: 78% NO.
Oil Shale Exploration R's: 90% YES. D's: 86% NO.
Outer Continental Shelf Exploration R's: 81% YES. D's: 83% NO.
Increased Refinery Capacity R's: 97% YES. D's: 96% NO

SUMMARY: 91% of House Republicans have historically voted to increase the production of America’s own oil and gas. 86% of House Democrats have historically voted against.

If it's obvious, then quite whining about the real estate market.

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Blade: "more educated and literate people than Justabubba"

Justabubba: "that would include everyone"

http://politicalforum.com/showthread.php?t=27847

this is the best explanation i have found of the housing bubble
martenson really takes a strong, documented shot at the federal reserve
and the implications are ominous beyond the delay in real property values returning. the forecast of tight credit and its implications are scary (that be afraid line sounded very republican, didn't it?)

http://chrismartenson.com/bubbles

__________________

Quote:

"I like to watch the news, because I don't like people very much and when you watch the news ... if you ever had an idea that people were really terrible, you could watch the news and know that you're right."

Frank Zappa