i've never said we should bail them out. in fact if you read some of my other posts you'll find i think it's imperative to let people go bankrupt to bring housing and all other assets in line with wages but to say that all other parties had no blame or less blame in this pyramid. That it couldn't happen without dumb home buyers so it's all their fault is a ridicules augment. the same could be said for banks If banks could only loan money they had (take away fractional reserve lending) and the bubble doesn't happen either
Sure, they did not do it knowingly but they were IGNORANT as hell. And I mean the whole industry with Bernake and the FED. I watched John Mack (CEO of Morgan Stanley) yesterday on PBS. The guy kept saying that it's a confidence problem!! He is still clearly in a total denial about what they in the banking sector managed to do for the rest of us. I only wish they did not fuck up on such a grand scale so that we could actually let most of them fail.
and bowers didn't know that houses wouldn't appreciate 10% a year forever either what is your point here you can't blame one person for ignorance and defend another's well, rational people can't anyway
Wow, did everyone get a trophy when you were a child? Banks aren't breaking the millions of legal mortgage contracts, borrowers are. Everyone had a role but look at who's not living up to their end. Are gun manufacturers equally responsible for murders too? If it was committed with a gun they had a role but that doesn't make them equally responsible. On top of buying more house than they could afford, consumers used their houses as ATMs to such excess that without the money they borrowed through refinancing, economic growth from 2000 to 2006 would have been down 3 years and up less than 1% the other 3. I don't know about you but I'm the best judge of what I can and can not afford. I don't want or need someone to protect me from myself but I seem to be in the minority here.
This is my point. http://www.elitetrader.com/vb/showthread.php?s=&threadid=154993&perpage=6&pagenumber=10
as usual, a CNN's sensational piece crap. It didn't say her husband's income and location of her house. I could be on TV says I am homeless and owe a 800k house. Anyway, My house is under a corp. name.
would you like to answer my previous posts. I answered you're question about lying on mortgages and no the gun maker is not responsible the banks run off a different set of accounting rules. Most banks would have to declare bankruptcy if they were a normal business, but if they get to leveraged they just change the rules. it's easy to live up to your end when you can change it. can I assume that you're against bank bailout, The FED, and fractional reserve banking. good for you that you know how much you can afford to borrow. just like me and 90% of the population. I don't know if it's worthy a mention in a post though
Yeah, that house is worth $200K in most parts of the country, less than that if you factor in the neighborhood. I didn't catch the location. I'm assuming it's in L.A. where the housing market was too high before the bubble even started. You could move to Maricopa AZ and buy that house for under $100K easy. I live 30 minutes from the area. Some of the houses are extremely nice, probably worth a million or two if they were located in Scottsdale, but everyone owes twice the value of the house and have no choice but to walk away. http://online.wsj.com/article/SB123543721679054667.html
The only reason these people are getting help is because the banks will drop if the don't. If the banks, with some of the most experienced and highly compensated employees in the world, would have kept their financial house in order, help for those unable to pay their mortgage would have NEVER came. It wouldn't even be considered. But, since greedy executives were using huge publicly traded companies as ATMs, the rest of us have to jump in the quicksand and try to pull them out.