Was most of this planned out?

Discussion in 'Economics' started by thesharpone, Mar 17, 2008.

Was this credit crisis on purpose?

  1. Yes

    12 vote(s)
  2. No

    2 vote(s)
  3. WTF

    2 vote(s)
  1. I'm talking about the credit crisis.

    Is this a well thought out plan (for the profit of few and loss of many)? or are banks really that stupid, I mean how could they not know it would end like this?
  2. When something looks too perfectly WRONG, what do you think the answer is. :)
  3. I think they really were/are that stupid. I was able to take a loan against a townhouse purchased one year earlier for up to 90% of its value (which exceeded the purchase price) and use that money as a down payment to buy a couple more. When we did that, I told my wife that the bank was stupid to lend us the money so easily on equity that was just created and that this window of opportunity would close. Got all we could during the mania, with sensible fixed notes and I'm happy about it. But I seriously couldn't believe that the banks allowed that and I know the mantra back then was to buy properties on ARMs. We didn't, but many did.

    Yep, they were that stupid.

  4. does this plan also serve to screw china's currency?

    or is that just a possible side effect?
  5. The fed being overly dovish while the ECB being overly hawkish does seem a bit random. In concert they are pushing things the opposite direction of what would be to stabilize.
  6. Greed ALWAYS trumps intelligence. So yes, stupidity.