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Your ENTIRE last paragraph is a product of government action/inaction. Why are we forcing banks to lend to people who can't afford homes to begin with? Again, ideologically driven bureaucrats with badges who face no consequences for THEIR FAILURES regulating industries they don't understand. How many of the bureaucrats that forced banks to lend to unqualified borrowers got fired? Exactly.
Either way, it's a government failure. End of Story. There is no way around it.
Quote from article:
"In other words, the poor did not represent a higher fraction of the mortgage loans originated over the period. In addition, borrowers in the middle and top of the distribution are the ones that contributed most significantly to the increase in mortgages in default after 2007."
So tell me what act was it that forced banks to loan to middle class, and upper class people?
Quote from article:
"The repeal allowed banks to use deposits to invest in derivatives. Bank lobbyists said they needed this change to compete with foreign firms. They promised to only invest in low-risk securities to protect their customers. The following year, the Commodity Futures Modernization Act exempted credit default swaps and other derivatives from regulations.3 This federal legislation overruled the state laws that had formerly prohibited this form of gambling."
Govt only guilty of cronyism, and corruption. Banks knew what they can get away with.
Quote from article:
"The financial sector lobbied long and hard for deregulation in recent decades, and spent a great deal of time and money persuading politicians that it constituted the safe and modern approach to banking. According to this view, government policies did not fail; on the contrary, they operated exactly as intended – and as bought and paid for."
it is the type of work that creates the shortages. Not everyone wants to be a worker monkey in some mom and pop shop where everyone can tell you what to do. If these places only hire part time, those wages will cut people off from state insurance plans and there is no getting ahead. The poor monkey is getting paid more, but now can't even afford to buy a banana.
Clue:
These types of jobs are not meant to be careers.
That's why they generally don't pay high wages.
People work these jobs as teenagers or students.
If you've been flipping burgers for five years, it's not the job or the pay that's the problem.
The Seattle area is very expensive. Dick's has always paid higher wages and had perks (and their food is fricken good), but while $19/hr is great in some areas, it isn't in that area. It's "eh....ok".
I left Seattle in 2001. Except for housing in CA, 2001 Seattle is still more expensive than 2021 Texas (Dallas, Plano, Houston), 2021 Florida (Miami), 2021 Maine, 2021 NC, and everything in 2021 CA except the aforementioned housing and car registration.
It seems like a lot, until you live in Seattle.
So..... don't live in Seattle seems like the best solution.
I did the same thing when I left Upstate NY back in the 90's.
Better yet, quit voting for Democrats who turn places like Seattle into high tax, high COL areas.
Yeh I am sure the mgmt, major shareholders, bankers, and profiteers have no say in anything. They just at the right place and right time, and abracadabra all that money and influence landed on their lap.
They deregulated Wall Street, and viola the GFC.
The devil is in the details. Regulations can be good or bad depending on exactly what it is specifically.
No just the opposite. A managed market vs a free market. The lending industry was regulated and forced to make loans to people who never qualified for a loan in the past and haven't qualified since then.
So sick of this talking point, especially because you righties never follow it through. If all the lower skill workers move to flyover country, then you really have a labor crisis on your hands in the big cities.
And if grandma had balls she'd be grandpa. Your point is silly and has no substance.
Quote:
Originally Posted by FirebirdCamaro1220
Unless the people left over will just do that work themselves on top of the jobs they already have (which they won't). And that would make COL even worse in the cheap places because the price of labor would be driven down by an influx of low skill workers and a sudden shortage of housing would cause rents and prices to increase
Like what happens when illegals are allowed to stay?
It depresses me when I see people as brainwashed by right wing propaganda as you. You think you're a winner, but you aren't winning. Elon Musk, Jeff Bezos and Bill Gates are winning, and they're laughing at people like you who are making it possible for them to stack the deck even more in their favor
It depresses me when I see people make things up like you do because one is uneducated about the free market.
If you've been flipping burgers for five years, it's not the job or the pay that's the problem.
I guess there are not enough kids in Seattle for the folks there to buy a burger. Folks who live there will have to spend and ever increasing percentage of their own time doing yard work and fixing bag lunches for themselves. In the end you have a building but can't enjoy.
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