Privatize profits socialize losses. -Increased spreads for lenders not being passed on to buyers -Inflate the currency to preserve bank-owned assets This is reality. Deal with it and try your best to profit from it.
raise rates Ceasar? http://www.philly.com/philly/busine...la__Fed_chief_hints_interest_rate_is_low.html
meanwhile the FDIC has all of $52billion available to secure depositors money when these banks start to fail.
tons of homeowners made a killing during this time and banked/invested the money. most seem to forget this fact. surf
Hell NO... up until half a generation ago, that's how business was done. A bank made a loan with the intention of making a profit on the repayment (and underwrote the loan risk accordingly).. and usually held the mortgage for many years, if not for the full term.
And now they can't afford to make their payments on the loans they took out to "bank" their money so they want help from the Gummint, meanwhile they get to keep all the money they took out and invested or whatever "assets" they bought with "their" equity.
Geeeez. If I had known that they would just write off half of the principal I owed in a few years, *I* would have gone out during the bubble and got a huge loan I couldn't afford, too! If they do this, they should also send a "For Not Being An Idiot" reward check out to me and all the other people who DIDN'T take on large debts we couldn't possibly pay back, just because "I really, really wanted that nice big house that cost more than I make in 20 years, and this friendly mortgage broker told me that with an ARM, I could have it." This just rewards 1) financial ignorance and stupidity on the part of the borrowers, and 2) financial rapaciousness and unbridled greed on the part of the lenders who issued them predatory loans and then securitized their liability away, and 3) financial ignorance, stupidity, AND greed on the part of the people who traded those securities.
They get charged back when they foreclose on you . Fuck the banks. I hope Citi and BofA go bankrupt. John