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Yes, bankers worked hard to dismantle Glass-Steagall. You can thank both Democrats and Republications who are both empty stooges of the Bankers.
Yup sadly true. Glass-Steagall was fully dismantled in 1999. Prior to repeal of Glass-Steagal, real estate prices only appreciated at the rate of inflation in most major metro areas if the home was well kept and cared for which is only how it should have been and always was from like the 1940s to 1995. Same with new construction and in fact new home construction costs were flat or even went down from 1991 to 1997 in most metros except metro Detroit really at least based on research I have done.
Then in the mid 1990s, parts of Glass-Steagal started to get picked apart and home prices started to appreciate far more than inflationary rate in Metro Detroit and a few other metros. Then in 1999 it was repealed completely and almost all other metros followed sadly leading to the housing bubble of the early to mid 2000s before it crashed in 2008-2009.
By appealing to collective greed and bucket lists, the bankers have once again, as they have for eons, blown up the economy (in this case the world economy, which is a first for the bankers). Yes, this self-induced panic creates enormous difficulties, but wouldn't it have been better if:
1) Corporations didn't take on enormous debt to buy-back their self-indulgent debt?
2) Households didn't take on huge credit debts so that they can enjoy vacations, cars, and smartphones they couldn't afford?
3) Students weren't forced into a bidding war and an abyss of loans for a college v seat?
4) Pharmaceuticals and hospitals weren't allow to use fear to hollow out the c savings of the elderly.
Yes, I know people are fundamentally filled with desires that they must have, but is it worth it if you are selling one's soul to the bankers.
Sixteen tons
And what do you get
Another day older and deeper in debt
St. Peter don't you call me because I can't go
I sold my soul to the company store.
DSJ.. Give. It. A. Rest.
A rant on Aliens and The Mystery of Crop Circles would be more productive.. and entertaining..
I would not put the blame all on banks, at least not traditional banks. Maybe the greedy invesment banks who hoard real estate and make us beleive our economy is dependent on a strong housing market as in price appreciation which is a complete bullsh*t and only steals from future generations.
Thus the blame lies in government policy allowing cheap and easy credit and little to no money down loans even after 2008-2009 crisis and the whole trying to inflate home prices to outrageous levels of $220K or more for starter bungalows in most major metro areas when such homes should only be costing $100K to $140K.
The government need to go back to the rules to encourage more construction and tax breaks for home builders to make it profitable to build nice starter homes 1000 to 1400 square feet for reasonable selling price of $130K to $170K instead of the outrageous $200K or more selling price for tiny condos in all metros or even worse homes minimum of only 1400 square feet costing well north of $250K and often north of $300K to build which has caused this mess.
They also need to make a minimum of 20% down payment required and normal 6-8% interest rates on mortgages no exceptions. And outlaw and get rid of home equity loans to do improvements or buy cars and such and start looking as a home as a place to live while striving to own it free and clear not a flippin ATM machine.
Also they should tax the heck out of real estate hoarders or ones who own second homes hoping to sell for a profit later on with super high property taxes while making them super low at both millage and assessment level for one's primary residence they actually live in. For example California Prop 13 and Proposal A in Michigan or other states with similar property tax laws protection should be eliminated for those holding real estate they do not live in or have vacation homes and should be permanent for even new home buyers as long as it is their residence they live in. Now businesses should also get protection as well. But those who actually hoard real estate for vacation homes should have to pay taxes based on home value and get no property tax assessment protection at all. Maybe except multi family apartment unit landlord so rents can be reasonable. But not secondary homes regardless unless it is used for business purposes other than hoping to sell for profit later on because of stupid high price appreciation,
Basically the government and many have brainwashed us to believe that high level of home price appreciation is good when in reality it is very bad for future generations and not sustainable which is why we were in this mess before 2008 and appear to be headed into it again and now the virus once in a century thing is icing on the cake to exploit the cracks in the economy and it hyper debt band aid policies that are not sustainable.
You don't have a real grasp of economics, do you? My 1400 sq ft house in Central Houston is worth about $400k. Most of that value is in my 11,000 sq ft lot. No way this house should be worth only $140k. Construction prices are about $180 per sq ft in this area, so it would cost $250k to build, without the land. That's due to raw material cost and labor.
My house was built in 1952. In 2015, we remodeled the kitchen and den, because the original 1952 cabinets were starting to fall apart. Not from abuse, but because of the way they were built. We had to refinance the house to pay for the kitchen work, which included new plumbing, new electrical, new cabinets, appliances, etc. We also had to replace the cedar siding, which was starting to rot, and the roof. Total was about $100k. No way we could get that out of savings, so the refinance was a godsend. Why do you want to destroy home ownership with your bizarre suggestions?
I would not put the blame all on banks, at least not traditional banks. Maybe the greedy invesment banks who hoard real estate and make us beleive our economy is dependent on a strong housing market as in price appreciation which is a complete bullsh*t and only steals from future generations.
Thus the blame lies in government policy allowing cheap and easy credit and little to no money down loans even after 2008-2009 crisis and the whole trying to inflate home prices to outrageous levels of $220K or more for starter bungalows in most major metro areas when such homes should only be costing $100K to $140K.
The government need to go back to the rules to encourage more construction and tax breaks for home builders to make it profitable to build nice starter homes 1000 to 1400 square feet for reasonable selling price of $130K to $170K instead of the outrageous $200K or more selling price for tiny condos in all metros or even worse homes minimum of only 1400 square feet costing well north of $250K and often north of $300K to build which has caused this mess.
They also need to make a minimum of 20% down payment required and normal 6-8% interest rates on mortgages no exceptions. And outlaw and get rid of home equity loans to do improvements or buy cars and such and start looking as a home as a place to live while striving to own it free and clear not a flippin ATM machine.
Also they should tax the heck out of real estate hoarders or ones who own second homes hoping to sell for a profit later on with super high property taxes while making them super low at both millage and assessment level for one's primary residence they actually live in. For example California Prop 13 and Proposal A in Michigan or other states with similar property tax laws protection should be eliminated for those holding real estate they do not live in or have vacation homes and should be permanent for even new home buyers as long as it is their residence they live in. Now businesses should also get protection as well. But those who actually hoard real estate for vacation homes should have to pay taxes based on home value and get no property tax assessment protection at all. Maybe except multi family apartment unit landlord so rents can be reasonable. But not secondary homes regardless unless it is used for business purposes other than hoping to sell for profit later on because of stupid high price appreciation,
Basically the government and many have brainwashed us to believe that high level of home price appreciation is good when in reality it is very bad for future generations and not sustainable which is why we were in this mess before 2008 and appear to be headed into it again and now the virus once in a century thing is icing on the cake to exploit the cracks in the economy and it hyper debt band aid policies that are not sustainable.
You don't have a real grasp of economics, do you? My 1400 sq ft house in Central Houston is worth about $400k. Most of that value is in my 11,000 sq ft lot. No way this house should be worth only $140k. Construction prices are about $180 per sq ft in this area, so it would cost $250k to build, without the land. That's due to raw material cost and labor.
My house was built in 1952. In 2015, we remodeled the kitchen and den, because the original 1952 cabinets were starting to fall apart. Not from abuse, but because of the way they were built. We had to refinance the house to pay for the kitchen work, which included new plumbing, new electrical, new cabinets, appliances, etc. We also had to replace the cedar siding, which was starting to rot, and the roof. Total was about $100k. No way we could get that out of savings, so the refinance was a godsend. Why do you want to destroy home ownership with your bizarre suggestions?
Your house is worth what someone else will pay for it, if anything. All you have that is real is a huge debt. The rest is fantasy until you sell it. I thought you might have learned something from the housing bubble. Trillions up trillions of fantasy wealth disappeared in a matter of days. Debt is not so easy to get rid of.
Again, this is not the state of affairs as of Dodd-Frank. Should there be a similar collapse as there was previously, the rules have changed limiting the resources available to the FDIC.
Sure. They made their money by taking on debt courtesy of the bankers so that they can issue stock buybacks. They get the money and the company gets there debt. Let's call it for what it is: a Neo-Parasitical Economy.
They also used their tax windfall to buy back stocks. Not to expand or raise wages or have cash reserves.
But they won’t roll them back instead they stand in line, hand out, for more money from Daddy. Then we will pay when they gut SS and Medicare to pay for it.
Amusing little diatribe OP. Banks put guns to people's heads to take out home equity loans, overpay for worthless college degrees, and be generally financially irresponsible.
I and millions of others just lost my job and banks had nothing to do with it. It was the governments rightful response to try to quell an epidemic from a novel virus that has caused the closure of millions of businesses. You dont think that will have an effect on the stock market?
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