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Old 10-10-2008, 01:40 PM
 
1,831 posts, read 5,283,461 times
Reputation: 673

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Everybody wants to blame Wall Street but the real problem is your fellow Americans. Wall Street merely gave people what they wanted ... the ability to use their houses as cash registers and live way beyond their means.

As soon as it came time to pay the piper, people walked away ... in droves. They didn't care ... as soon as it became inconvenient ... they took the money and ran.

Now the financial system and the economy is on the brink of collapase. Not just because of the losses on home loans but because financial institutions have absolutely no faith that they will be paid back by anyone. And who can blame them?

The Fed can keep lowering interest rates and flood the system with cash as much as they want but ... as long as people keep defaulting and crapping out on their loan obligations ... the banks are going to continue to hoard that money.

Hence the credit crunch. You cut the flow of money and you basically create economic disaster.

You want to know who really caused this entire disaster? It's the American public.
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Old 10-10-2008, 01:43 PM
 
Location: Great State of Texas
86,052 posts, read 84,246,121 times
Reputation: 27718
First of all it wasn't Wall Street...Wall Street does not sell houses nor do they underwrite mortgages.
I stopped reading after the first sentence.
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Old 10-10-2008, 01:45 PM
 
Location: The Great State of Texas, Finally!
5,465 posts, read 12,208,939 times
Reputation: 2801
That's why bailouts don't work. Excusing bad behavior encourages guess what? More bad behavior. Legitimizing and legislating bad behavior is the problem.
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Old 10-10-2008, 01:51 PM
 
1,831 posts, read 5,283,461 times
Reputation: 673
Quote:
Originally Posted by HappyTexan View Post
First of all it wasn't Wall Street...Wall Street does not sell houses nor do they underwrite mortgages.
I stopped reading after the first sentence.
I'm not sure you even read the first sentence. And, apparently, you've never heard of mortgage backed securities either.

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Old 10-10-2008, 01:53 PM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,583,540 times
Reputation: 677
Quote:
Originally Posted by sheri257 View Post
Everybody wants to blame Wall Street but the real problem is your fellow Americans. Wall Street merely gave people what they wanted ... the ability to use their houses as cash registers and live way beyond their means.

As soon as it came time to pay the piper, people walked away ... in droves. They didn't care ... as soon as it became inconvenient ... they took the money and ran.

Now the financial system and the economy is on the brink of collapase. Not just because of the losses on home loans but because financial institutions have absolutely no faith that they will be paid back by anyone. And who can blame them?

The Fed can keep lowering interest rates and flood the system with cash as much as they want but ... as long as people keep defaulting and crapping out on their loan obligations ... the banks are going to continue to hoard that money.

Hence the credit crunch. You cut the flow of money and you basically create economic disaster.

You want to know who really caused this entire disaster? It's the American public.
This is the best post I've read here in days. I know there is blame to go around, but in the end, it all comes back to the exhuberant and irresponsible borrower.

The "keeping up with Joneses" mentality has driven our country into the ground!

People thought homeownership was a right. News flash: Homeownership is a privilege.
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Old 10-10-2008, 01:58 PM
 
20,599 posts, read 19,261,971 times
Reputation: 8204
Quote:
Originally Posted by sheri257 View Post
Everybody wants to blame Wall Street but the real problem is your fellow Americans. Wall Street merely gave people what they wanted ... the ability to use their houses as cash registers and live way beyond their means.

As soon as it came time to pay the piper, people walked away ... in droves. They didn't care ... as soon as it became inconvenient ... they took the money and ran.

Now the financial system and the economy is on the brink of collapase. Not just because of the losses on home loans but because financial institutions have absolutely no faith that they will be paid back by anyone. And who can blame them?

The Fed can keep lowering interest rates and flood the system with cash as much as they want but ... as long as people keep defaulting and crapping out on their loan obligations ... the banks are going to continue to hoard that money.

Hence the credit crunch. You cut the flow of money and you basically create economic disaster.

You want to know who really caused this entire disaster? It's the American public.
Hello sheri257,

I lent bananas to a monkey and he didn't pay me back. I blame the monkey too.
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Old 10-10-2008, 02:01 PM
 
Location: NW MT
1,436 posts, read 3,293,483 times
Reputation: 551
Simple answer and my opinion... the bailout doesn't help the American people who INVEST in the market in the first place. It is only going to help out a few big scum bag banks that need to go away for what they did anyway.

Everyone in foreclosure right now will still be in foreclosure after the bailout. All the junk property that can not be paid for after the bailout will still not be paid for and held by the "Gov" instead of the banks with tax dollars never to be seen again... for the most part. Any funds to be seen by the Gov for these "junk" properties they will be holding will be pennies on the dollar... because that's what they are worth and always have been worth ! The banks will make sure they come out nice and clean while the Gov puts on a charade like they don't know or understand what just happened and how the American tax payer just became the scapegoat for the banks.

The people know this and refuse to put their money in a bull**** manipulated market like this.
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Old 10-10-2008, 02:03 PM
 
Location: Chino, CA
1,458 posts, read 3,276,101 times
Reputation: 557
Quote:
Originally Posted by gwynedd1 View Post
Hello sheri257,

I lent bananas to a monkey and he didn't pay me back. I blame the monkey too.
I agree, if there wasn't any "free" credit "insured" by CDSs... maybe there wouldn't have been a banana to give the monkey in the first place.

The government should seize banks/firm assets, sell them and give it to the American taxpayers. After-all, they were the firms that ultimately enabled the rapid "fake" rise in asset prices and fooled the world in the first place.

-chuck22b
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Old 10-10-2008, 02:06 PM
 
Location: NW MT
1,436 posts, read 3,293,483 times
Reputation: 551
Quote:
Originally Posted by PotterGeek View Post
This is the best post I've read here in days. I know there is blame to go around, but in the end, it all comes back to the exhuberant and irresponsible borrower.

The "keeping up with Joneses" mentality has driven our country into the ground!

People thought homeownership was a right. News flash: Homeownership is a privilege.
People have ALWAYS been trying to keep up with the Joneses. Banks used to have some pretty tough lending practices. It was the banks that decided to loosen up and give the people what they ALWAYS wanted. And that will never change. People will always be trying to get as much as they can with what they got, it's those that give it to them under false pretenses that made this bad situation, not the people wanting it.
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Old 10-10-2008, 02:09 PM
 
1,831 posts, read 5,283,461 times
Reputation: 673
Quote:
Originally Posted by gwynedd1 View Post
Hello sheri257,

I lent bananas to a monkey and he didn't pay me back. I blame the monkey too.
The point isn't just blame. The question is why aren't the usual recessionary measures not working this time?

In 2001, the government did the same thing. People got stimulus tax refund checks, the Fed slashed interest rates, flooded the system with cash, etc. and the economy recovered fairly quickly.

This time, the Fed cash isn't doing anything because the banks aren't turning around and lending it out like they used to. Why? Because with these record numbers of defaults they're terrified that they won't be paid back. And who can blame them?

Even if you have premium credit, chances you're paying much higher interest rates because they can't trust anyone to pay them back.
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