Fixing the Economy-What's your thinking? (China: foreclosures, loans, lawyers) - Maine (ME) - City-Data Forum

Siobjuan · 10-14-2008, 10:39 AM

I am the first to admit that I have only begun to follow politics closely only the past 8 or so years, but wouldn't the first act to bail out our economy be to start calling in our loans to other countries?

Haven't we bailed out France a few times and financed their wars? Aren't we, at this moment, still paying US dollars to other countries that have never paid us back?

Please, educate me!

mollysmiles · 10-14-2008, 10:44 AM

I'm in the same boat with you.... I haven't paid attention nearly as much as I should have, and even now, with all this going on, I'm not attentive as I should be. That being said though, I'm really worried about the government having such a heavy hand in the banking system... I hope that I'm just misunderstanding, and that this is an entirely necessary thing

BUT, even if it is, I still don't like!

Bideshi · 10-14-2008, 10:50 AM

Step one is to restore confidence in our society by prosecuting and imprisoning the criminals responsible for this collossal scam. We need to see CEOs, CFOs, heading into hard time in hand cuffs. Without that there is no fixing this mess and it will get much worse.

Submariner · 10-14-2008, 11:12 AM

Quote:

Originally Posted by Siobjuan

I am the first to admit that I have only begun to follow politics closely only the past 8 or so years, but wouldn't the first act to bail out our economy be to start calling in our loans to other countries?

Haven't we bailed out France a few times and financed their wars? Aren't we, at this moment, still paying US dollars to other countries that have never paid us back?

Please, educate me!

Nations all around the planet followed us into this mess.

Nobody has the cash to pay off their loans.

Stock markets everywhere are falling apart.

Submariner · 10-14-2008, 11:16 AM

Quote:

Originally Posted by mollysmiles

I'm in the same boat with you.... I haven't paid attention nearly as much as I should have, and even now, with all this going on, I'm not attentive as I should be. That being said though, I'm really worried about the government having such a heavy hand in the banking system... I hope that I'm just misunderstanding, and that this is an entirely necessary thing

BUT, even if it is, I still don't like!

Woodrow Wilson handed banking into private hands. European hands. Soon afterward he repented, and later he dedicated a lot of time in the attempt of warning the nation about the evil that he had done.

I am not entirely sure that banks should be private.

Nor am I convinced that 'fiat' money is wise.

A 20:1 ratio between cash on deposit and loans issued seems out of line IMHO

Submariner · 10-14-2008, 11:17 AM

Quote:

Originally Posted by Bideshi

Step one is to restore confidence in our society by prosecuting and imprisoning the criminals responsible for this collossal scam. We need to see CEOs, CFOs, heading into hard time in hand cuffs. Without that there is no fixing this mess and it will get much worse.

Lawyers, Politicians, and Corporate Executives.

RANGER.101ST · 10-14-2008, 11:30 AM

the economy cant be fixd it can be patchd up but not fixd.untill the american public steps up and says no more.

flycessna · 10-14-2008, 11:43 AM

this is mostly about fanni mae and freddie mac.....Sociolists economics, and greedy politicians, and CEO's

The most obvious is that banks have no collateral to lend money.....

easy loans made it easier for anyone to buy a home......even an investor...I remember thinking that you could go to Florida and buy a home 100% loaned out and sell it 6 months later and make a profit....all of this demand was hollow and now the bottom has fallen out.

So forget about the foreclosures!!.......banks are reeling because of their overall portfolio has crashed. If you have 100 million in loans and the homes are the collateral that guarantee those loans. Well you now have 70 million in collateral (the new deflated value of the homes) guaranteeing 100 million in loans and banks are forced to find more collateral so that they can continue to do business. Whether or not people foreclose the banks cannot lend money everything is frozen. The economy comes to a halt, people lose their jobs and the cycle worsens

The reality is that most people WILL NOT foreclose on their home, and the loans will be repaid. the government that buys this bad debt will probably eventually make money on the deal. I doubt though we will never see it the form of a benefit. It will all be swallowed up by our ever increasing government spending and corruption. But with that said, and not being much of an economist myself, I don't know how else the problem could be solved. And it still may not be

island mermaid · 10-14-2008, 12:33 PM

Cessna,

People down here are letting their homes go into foreclosure. At least in my area. You're right, they loaned amazing sums of money to people that could never in a million years have afforded to pay it back. There are so many people here that have just packed up their homes and walked away. Empty vacant million dollar homes everywhere. Of course we know that the million or more dollar price tag was an over inflated price to begin with.

The high rise I live in down here has 256 units - small in comparison to most - now has 34 units in foreclosure. Units that originally had a price tag of $425k-$750k two years ago are now listed at $325k - $450k. Everyone is upside down. Some are now homeless. Stupidity is a terrible choice. Glad I didn't make it.

BacktoNE · 10-14-2008, 12:45 PM

Unfortunately, calling in loans won't net us a thing. Most countries are in the same condition as the U.S. and are busy bailing out their own banks, etc. And lets not forget that the U.S. owes China something to the tune of $500 billion dollars. We don't want China calling in that debt anytime soon.

While I would love to see the CEO's & CFO's behind some of this mess prosecuted and sent to jail, it isn't going to solve the problem. It would, however, be enormously satisfying.

The housing mess is a problem that I really haven't heard a good solution to. There are so many people upside down on their houses due to paying an inflated price. When those houses go into foreclosure, the banks cannot hope to recoup that money because no buyer in their right mind is going to pay $100K or more than the house is now worth. (I'm thinking of CA, FL, NV & AZ specifically) So the banks ends up losing even more money. I'm just not sure how to fix this piece of the problem. I listen to the economists and other financial "experts" on TV, all tossing out their idea of a solution but none of them work in reality. Either the banks lose out big time, or the homeowners get screwed.