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Originally Posted by Zoe";p="
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Originally Posted by Blade";p="
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If you google that phrase, you'll find all kinds of chowder heads saying this proves "capitalism doesn't work". Actually, it proves how well it works. What we're seeing now (except for the ill-conceived government bailout) is capitalism efficiently removing from the market lenders who make very risky loans, and borrowers who take out loans they can't pay. Problem? No problem.
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There are no "final words" on this mess. But I don't know of anyone who says that "capitalism doesn't work". Capitalism works just fine as long as it's corruption and enthusiasms are contained- hence regulation.
It did not need to happen. Greenspan could have exerted restrictions on lending institutions in advance of a crisis. He was warned. Instead Bernanke must regulate/ offer assistance by shutting the stall door after the horse is gone. It proves, once again, that people are greedy b*st*rds and regulation IS necessary. If you think that the only people who will suffer from the subprime debacle are banks and foolish borrowers, then all I can say is, enjoy your delusions while you can. You are already poorer, guess you have not noticed yet.? I will point out the error of your ways in the months to come. |
Let's see if I can scope this down for you.....
You appear to be saying that the fallout from the "mortgage crisis" affects people who weren't involved. The economy was stimulated by an illegitimate housing boom that shouldn't have taken place. Now the market is restoring the economy back to where it should be. The american economy can grow, if that's what is desired, by living within our means, cutting bureaucracy and regulation, rewarding merit, lowering taxes, stopping illegal immigration, and in general letting lose the productive forces of society. And you should note that the TITANIC greedy b*st*rds in our society are certainly government, at all levels. |
I am saying that "bubbles" are extremely dangerous and should not be allowed to develop. But things won't go "back to where it should be". Housing prices are not gently rising; they are going down! No one wants to lend, people ar scared to buy. People are going bankrupt. The credit card industry is next. Greenspan kept interest rates SO low, for so long and failed to oversee the lending industry, that demand for housing churned into another example of irrational exuberance. The hangover is going to affect all of us. It is influencing confidence in the stock market, it is altering confidence in the value of the dollar, it is changing people's perception about their economic well-being and what they can afford. We are, all of us, a much poorer country. Better get used to it. Foreigners are buying our assets. Internationally, people don't want to price things in dollars any longer. It is no time to be smug about your particular circumstance. |
what you are expecting is absurd.
shortly before the sub prime bubble burst the major banks in my community were being accused of not fulfilling their Community Reinvestment Act responsibilities locally because there were many poor/minorities who were found to have been declined for a home loan. the lenders properly declined those applicants because they were unworthy credit risks despite the lenient attitude to mortgage lending that was so recently prevalent. you can imagine the spokesmodels for the minority community came out in force accusing the banks of red-lining (would that not be black-lining) minority communities into which those denied applicants had hoped to buy.
now the media is running articles critical of those same lenders because they made too many loans in those communities, using relaxed standards, and now those real estate values are plummeting, in large degree because of the concentrations of foreclosures of sub prime borrowers.
your schizoid argument reminds me of the media. what really pisses me off is that i am forced to agree with jake - even while he is wearing that God-awful pink tutu. but your argument is that of one who does her quarterbacking on monday morning, knowing what the outcome has been. if you are so smart, at least as smart as you think bernake/greenspan should have been, then why did you not sell your home at the top of the market and then hoard your cash so that you can buy an equivalent property cheaply when the market soon bottoms?
the last thing we need is government intervention in the marketplace, beyond its protecting us from fraud and abuses of monopolies. just watch. if the market is left alone it will correct itself. yes, those who invested unwisely will suffer. you complain that this affects the present market value of your home. my guess is you were not complaining when the appreciation of value was experienced before the bubble popped. here is a definition of Fair Market Value - i encourage you to memorize it:
the price at which a willing buyer would purchase a property and a willing seller would sell the same property, when neither party is under any compulsion to buy or sell, and each party has full knowledge of all pertinent facts relating to the sale. don't expect uncle sugar to protect your property value; invest wisely ... take personal responsibility to do that for that for yourself. i promise you that the outcome will far exceed what the government would do instead
12-19-2007, 03:22 PM
One last comment about the "mortgage crisis"
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