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I agree, only thing is. I don't think it is a republican or democrat issue. This is a rich and greedy versus the common good of the society at large issue.
For the last 30 years the US economy has been based on a boom & bust cycle in which the connected have ridden the booms and bailed before the bust. This is called Reaganomics etc.
Financiers are addicted to borrowing your money, my money and the Fed’s printing press. They are not willing to use their own money. They gain and we loose is a proper business model if you are a financier. Many people have learned the hard way that you cannot trust Republicans with your money. They will borrow and borrow and spend and spend without any intention to ever paying anything back with their own money. That is our problem.
A huge part of the recent financial problem is that people were living WAY beyond their means by taking out HELOC's and speculating on homes, or stupidly buying too much home and not having done even the basic amount of learning. (What do you mean my mortgage adjusts?).
You also have US credit card debt if you need another example....prior to that you have dot coms, silver speculators....the list goes on and on.
Where is the personal responsibility? You realize that if you restrict loans to people that are poor or have spotty credit you will be accused of holding down the poor (or racism...Jesse Jackson led a big push to loosen lending standards a while back, what could possibly go wrong?)
P.S. Dot Com and credit cards were under Clinton, the current real estate bubble under Bush...there was a smaller real estate bubble under Reagan\Bush I, etc etc etc.
yeah I agree, great point. Only thing I would say that this has less to do with who is in office as opposed to who is running the FED along with other in industry and in Washington who all work together to ease regulation during all these run ups. I mean if people start looking closely right now they can see where the next bubble will be. I know I see it clear as day.
I agree, only thing is. I don't think it is a republican or democrat issue. This is a rich and greedy versus the common good of the society at large issue.
I read a story about an immigrant family of 4 that all got jobs and managed to buy a home (west coast so very expensive). They ate sack lunches and worked long hours...no cable, no vacations, no nice car...and they made their housing payments and aren't being foreclosed upon.
I'd read about another person that bought their house for 150k years ago but now couldn't afford the 400k mortgage as it adjusted. No, thats not a typo....they kept refinancing to pull out the equity to spend on other stuff. (I read another story that the couple ran up 60k in credit card debt...combined income 6-figures and so now they can't make the house payment)
Why not let personal responsibilty and effort determine the winners and losers? Oh wait, common good of society...that's code word for I spend like crazy while you live frugally and save....then you bail me out.
Don't get me wrong, there are definitely hard-luck stories...illness, loan fraud, just plain bad luck....but the vast majority were self-inflicted.
yeah I agree, great point. Only thing I would say that this has less to do with who is in office as opposed to who is running the FED along with other in industry and in Washington who all work together to ease regulation during all these run ups. I mean if people start looking closely right now they can see where the next bubble will be. I know I see it clear as day.
Agreed. My opinion is that the next bubble is in commodities, especially gold. When you see the ads in the papers telling you, "Buy gold now, it's gone up so much...you are missing out!"....its hillarious. Yeah, buy my gold shares...I have made so much money that I want you to share in the wealth.
Something gets hot, gets overpriced...then the uninformed, lured by greed and the promise of easy money blunder in at the end and get to hold the bag.
I read a story about an immigrant family of 4 that all got jobs and managed to buy a home (west coast so very expensive). They ate sack lunches and worked long hours...no cable, no vacations, no nice car...and they made their housing payments and aren't being foreclosed upon.
I'd read about another person that bought their house for 150k years ago but now couldn't afford the 400k mortgage as it adjusted. No, thats not a typo....they kept refinancing to pull out the equity to spend on other stuff. (I read another story that the couple ran up 60k in credit card debt...combined income 6-figures and so now they can't make the house payment)
Why not let personal responsibilty and effort determine the winners and losers? Oh wait, common good of society...that's code word for I spend like crazy while you live frugally and save....then you bail me out.
Don't get me wrong, there are definitely hard-luck stories...illness, loan fraud, just plain bad luck....but the vast majority were self-inflicted.
My God,
I agree with you on everything you said. Those who made bad decisions, need to deal with that. I already bust my hump to pay my bills and be responsible, shouldn't have to pay for some goofy person who made a extremely poor and silly decision. When I say common good, I mean do not allow the govt and corporate scum bags to make decisions that hurt the society at large.
Quote:
Originally Posted by Mathguy
Agreed. My opinion is that the next bubble is in commodities, especially gold. When you see the ads in the papers telling you, "Buy gold now, it's gone up so much...you are missing out!"....its hillarious. Yeah, buy my gold shares...I have made so much money that I want you to share in the wealth.
Something gets hot, gets overpriced...then the uninformed, lured by greed and the promise of easy money blunder in at the end and get to hold the bag.
also look at regulations. What is the govt easing regulations on that will pave the way for another bubble? Renewable energy? Infrustructure? Mass Transit? That is where I think the next bubble to pull us out of the current mess will be.
IMHO - current bubble is oil and commodity prices. They will collapse as word wide demand collapse following the collapse of the interlocking worldwide financial industry. There is way too much funny money floating around the world to keep the myth from being exposed and having finance effectively shut down until the real values of things are rediscovered.
IMHO - If a person borrowed $300,000 to buy a $325,000 house then they owe $300,000 no matter what the value of the house. If the house drops below the outstanding value of the mortgage the owner still owes the entire mortgage. That is what he signed for. Why is this so darn complicated? If the owner cannot make the payments they loose the house and the bank looses some collateral value when they try to sell in a depressed market.
IMHO - current bubble is oil and commodity prices. They will collapse as word wide demand collapse following the collapse of the interlocking worldwide financial industry. There is way too much funny money floating around the world to keep the myth from being exposed and having finance effectively shut down until the real values of things are rediscovered.
It appears to me that the: "interlocking worldwide financial industry" is growing bigger.
Some politicians are now trying to form an economic union connecting North / Central / South America into a single entity to equal the European Union. My SIL is in DC and she is big in going to rallies and whatnot in support of forming such an American Economic Union.
How you do foresee this "interlocking worldwide financial industry" collapsing?
For the last 30 years the US economy has been based on a boom & bust cycle in which the connected have ridden the booms and bailed before the bust. This is called Reaganomics etc.
Financiers are addicted to borrowing your money, my money and the Fed’s printing press. They are not willing to use their own money. They gain and we loose is a proper business model if you are a financier. Many people have learned the hard way that you cannot trust Republicans with your money. They will borrow and borrow and spend and spend without any intention to ever paying anything back with their own money. That is our problem.
The economy has ALWAYS been boom and bust. It's nonsensical for you to equate it with Reaganomics.
In fact, I would argue exactly the opposite point. By implementing deregulation and lower corporate taxation, bust cycles are far less severe than they were through the fifty years of Keynsian economics instituted by FDR.
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