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Author
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Topic: Mortgage based finance crisis growing and getting worse
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Mr. Fun
IE # 63
Member # 352
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posted
It's pretty darn bad, and the worse is yet to come.
I've been pulling money out of the market since last year. I've just about loss faith in this corrupt system.
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Thomas
IE # 19
Member # 101
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posted
Mr. Fun, in all seriousness. Could you explain how is the stock market is corrupt?
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-Tom
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Thomas
IE # 19
Member # 101
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posted
Don't get me wrong I do think there is corruption. But I would like to hear where you might think it is and why.
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-Tom
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Animation Co-op
IE # 295
Member # 3421
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posted
Unfortunately, this entire situation has been brought about by basic human greed, and we're ALL culpable components of "the system".
Homeowners want MORE, so banks (only too happy for MORE themselves) write a flood of shaky mortgages. Shareholders was MORE, so financial institutions offer ironically-termed "securities" that are leveraged on this house of cards.
This is what we get, folks, when we spend money we don't have and when we borrow funds that we can't cover. "WE" are responsible for this.
And guess who ultimately has to bail "US" out (in the form of massive corporate welfare subsidies to imploding institutions whose CEOs take great big golden parachutes on the way out)?
YOU! ![[Big Grin]](biggrin.gif)
KG
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Charles
Administrator
Member # 7
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posted
I listened to it Jennifer. Really get's down to ground level of how this all emerged and worked out. The dynamics that fueled it was the enormous global wealth that amassed from the developing world, effectively doubling the world money supply in just a few years, from what had taken centuries of capital accumulation to build up.
So we've lost a good part of the global money on this, kind of back where we started, and the economy will settle into a 1970s malais for a few years as opposed to the Great Depression. Lending criteria will be enforced like it should've been all along, and we shall live to see another day.
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Animation Co-op
IE # 295
Member # 3421
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posted
An excerpt from today's L.A. Times business section editorial by David Lazarus:
I've never understood why some people consider "government" a dirty word. In a perfect world, free markets may indeed be sufficient to reward corporate excellence and safeguard consumers. But this isn't a perfect world.
Businesses aren't moral, they aren't ethical. They aren't supposed to be. They exist to make money and enrich shareholders. Regulation is necessary to define acceptable standards of conduct in an amoral world and to ensure that those standards are upheld.
Regulation, it's now abundantly clear, also is needed to protect people from themselves. I'm thinking of all those would-be homeowners who took out mortgages they had no prayer of affording.
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