You know host... I clearly don't know as much as some do about this. I, like many, are trying to understand this the best they can. You may have something to teach me but as long as you continue to take this sort of tone with the people you are trying to engage with, you will not meet with much success, "If you still see this as a "subprime" loan problem, you have a lot of reading to do. I cannot believe you posted so adamantly. It borders on insulting."
You have essentially called me stupid and insulting. Instead of me hearing what you are saying, I just get upset. I have said it before, you have done a lot research and I can see that you really want to share what you know with people. Time and again, I see you are passionate and instead of trying to win people over you toss up stat after stat after article after stat. I have been watching your frustration grow of the years.
I will say it again, your methods are not working. You are not reaching an audience the way you intend. All of your research, your passion is lost and it makes me sad. Please take what I am saying to heart.
All of that aside for the moment...
You appear to be talking about two different (but related things). You start off by talking about people who have entered into mortgages they couldn't afford (or could a few years ago but now can't) and then shift to the Global Credit crisis.
One is micro and the other is macro.
To look at the sup-prime issue as the OP suggests, is to look at it in the micro. To look at it in the level of how this is going to effect the average person. The average person really doesn't care about the Global Credit Crisis. What they care about is do they have a roof over their heads and food in their belly.
Yes, I understand that the two are related but so are the US and Chinese economies but the average person does care as long as they have the necessities of life.
The housing bubble hits people where they live... literally.
I admit, that I don't know exactly how this came about. How did so many bad debts get written? Did nobody at these lending agencies see that giving mortgages to people with shaky credit was a bad idea? Especially en masse? It's one thing to issue credit cards to this type of consumer and have them on the hook for $50,000 but many of these people are on the hook for hundreds of thousands of dollars in mortages on houses that now have less value than the loan.
Where is the risk management? I don't get it.
I still say that Bush is saving BOTH the people trouble and the corporations... though, given the scale, it is the corporations that will benefit the greatest as they have a lot more to lose.
What would you have had the government do?
Let the banks and lenders go bankrupt? Let the foreclosures happen in greater number than they already are? Let the US economy deteriorate further?
This is what a neoliberal would do. Leave it to the market.
__________________
"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
Last edited by Charlatan; 12-06-2007 at 04:21 AM..
Reason: Automerged Doublepost
|