america; the land of the free and the broke
09-30-2008, 12:32 PM
#16
If you look at the root cause of the mortgage crisis, you will find out that it stemmed from the Clinton administration. How?
Clinton signed in a bill at the end of his second term that basically told banks: either you meet this quota of approving loans to certain ethnic groups in this country, or we will impose higher taxes and penalize you for not meeting the annual quota enacted within this bill.
So how can banks approve loans, when knowingly, most of those people could not afford loans period? You start playing with adjustable loans and play with figures to allow them to get into the loan for the home in hopes that they will flip the house and get a better home with the equity they made from the previous.
Well, some of them did this which of course jacked up the prices causing over inflation of the mortgage values. Others just bought the homes thinking "I can buy a $500,000 home for $1700 a MONTH! I CAN AFFORD THIS!!!!!!!!!!!!!!!!"
Then you start to see people not being able to make payments, small part because of what Dave pointed out, out sourcing of vital jobs that kept our country moving. Others just couldnt keep up with their adjustables once the Feds raised the interest rates. Not to mention home builders kept blowing off signs of a slowing housing market (creating an inventory of unsold homes on the market)
In comes the waves of people who are applying for another home while their current home begins to go under. Thus causing foreclosure rates to skyrocket. And now Wall Street feels the pinch and are now crying fowl over their screw up. The housing market was created to "stem" off the IT stock failure from the late 90's, which again was government stepping in. Had they left this alone back then, we would be fine today. The economy is "healthy" when the market goes up and down. Prevent the economy from going down, market keeps going up. Eventually, the market will have to come back down and I dont know about you, but I rather like to see a small drop, then a drop from where we are now. Granted many "fear" this will cause a depression... that line just sounds like bs to me. Monday's "stock drop" of nearly 800 points is NOTHING. it equates to 9%. In order for us to go into a depression, you would have to see the market drop 3 times more in one day to see a depression begin.
This market will hurt us overall in the beginning, but we need it to happen badly to help the market weed out the bad people and bad investments. The low market will bring out entreprenures (spelling?) and help this economy get back on its feet with new inventions, technology etc. Letting the government do this will only prevent us from moving forward and keep the idiots of Wall Street happy. As mentioned above, it will only burden us as tax payers.
My ranting is done for now... LOL
Clinton signed in a bill at the end of his second term that basically told banks: either you meet this quota of approving loans to certain ethnic groups in this country, or we will impose higher taxes and penalize you for not meeting the annual quota enacted within this bill.
So how can banks approve loans, when knowingly, most of those people could not afford loans period? You start playing with adjustable loans and play with figures to allow them to get into the loan for the home in hopes that they will flip the house and get a better home with the equity they made from the previous.
Well, some of them did this which of course jacked up the prices causing over inflation of the mortgage values. Others just bought the homes thinking "I can buy a $500,000 home for $1700 a MONTH! I CAN AFFORD THIS!!!!!!!!!!!!!!!!"
Then you start to see people not being able to make payments, small part because of what Dave pointed out, out sourcing of vital jobs that kept our country moving. Others just couldnt keep up with their adjustables once the Feds raised the interest rates. Not to mention home builders kept blowing off signs of a slowing housing market (creating an inventory of unsold homes on the market)
In comes the waves of people who are applying for another home while their current home begins to go under. Thus causing foreclosure rates to skyrocket. And now Wall Street feels the pinch and are now crying fowl over their screw up. The housing market was created to "stem" off the IT stock failure from the late 90's, which again was government stepping in. Had they left this alone back then, we would be fine today. The economy is "healthy" when the market goes up and down. Prevent the economy from going down, market keeps going up. Eventually, the market will have to come back down and I dont know about you, but I rather like to see a small drop, then a drop from where we are now. Granted many "fear" this will cause a depression... that line just sounds like bs to me. Monday's "stock drop" of nearly 800 points is NOTHING. it equates to 9%. In order for us to go into a depression, you would have to see the market drop 3 times more in one day to see a depression begin.
This market will hurt us overall in the beginning, but we need it to happen badly to help the market weed out the bad people and bad investments. The low market will bring out entreprenures (spelling?) and help this economy get back on its feet with new inventions, technology etc. Letting the government do this will only prevent us from moving forward and keep the idiots of Wall Street happy. As mentioned above, it will only burden us as tax payers.
My ranting is done for now... LOL
09-30-2008, 12:53 PM
#17
Registered User
Join Date: Dec 2006
Location: VA
Posts: 434
What I'm saying is that in order to get money back into the country you have to first put money IN the country. It's almost the same as me saying "Taking trucks with more than 6 wheels off the road will improve traffic flow." I'm not relating to anything else, other than traffic flow. But I digress.
What I feel and from what I've seen, outsourcing is double edge sword that's cutting deeper into us than into anything else every time we swing it. I mean, on the one hand it's cheaper for business to run if they pay WhosYourDaddy from Mumbai whatever he makes instead of paying us. But at the same time, it's putting a huge cut into others spending. Outsourcing has been responsible for a LOT of layoffs recently, and (as I've stated) while it may be beneficial to the company, the employees are now left to front the difference. Not everyone can just turn around, pick up pay and start replenishing their funds right away. This happens to a lot of people. I lost a job to out sourcing . . .more than once . . .because your boy from Mumbai can answer phones and tell someone to reset their modem for a lot less than I can.
I laughed . . .
What I feel and from what I've seen, outsourcing is double edge sword that's cutting deeper into us than into anything else every time we swing it. I mean, on the one hand it's cheaper for business to run if they pay WhosYourDaddy from Mumbai whatever he makes instead of paying us. But at the same time, it's putting a huge cut into others spending. Outsourcing has been responsible for a LOT of layoffs recently, and (as I've stated) while it may be beneficial to the company, the employees are now left to front the difference. Not everyone can just turn around, pick up pay and start replenishing their funds right away. This happens to a lot of people. I lost a job to out sourcing . . .more than once . . .because your boy from Mumbai can answer phones and tell someone to reset their modem for a lot less than I can.
I laughed . . .
This isn't about Americans not having money to purchase goods or services, it's about bad business from large companies and people over extending themselves on home loans.
09-30-2008, 01:03 PM
#18
Registered User
Join Date: Dec 2006
Location: VA
Posts: 434
If you look at the root cause of the mortgage crisis, you will find out that it stemmed from the Clinton administration. How?
Clinton signed in a bill at the end of his second term that basically told banks: either you meet this quota of approving loans to certain ethnic groups in this country, or we will impose higher taxes and penalize you for not meeting the annual quota enacted within this bill.
So how can banks approve loans, when knowingly, most of those people could not afford loans period? You start playing with adjustable loans and play with figures to allow them to get into the loan for the home in hopes that they will flip the house and get a better home with the equity they made from the previous.
Well, some of them did this which of course jacked up the prices causing over inflation of the mortgage values. Others just bought the homes thinking "I can buy a $500,000 home for $1700 a MONTH! I CAN AFFORD THIS!!!!!!!!!!!!!!!!"
Then you start to see people not being able to make payments, small part because of what Dave pointed out, out sourcing of vital jobs that kept our country moving. Others just couldnt keep up with their adjustables once the Feds raised the interest rates. Not to mention home builders kept blowing off signs of a slowing housing market (creating an inventory of unsold homes on the market)
In comes the waves of people who are applying for another home while their current home begins to go under. Thus causing foreclosure rates to skyrocket. And now Wall Street feels the pinch and are now crying fowl over their screw up. The housing market was created to "stem" off the IT stock failure from the late 90's, which again was government stepping in. Had they left this alone back then, we would be fine today. The economy is "healthy" when the market goes up and down. Prevent the economy from going down, market keeps going up. Eventually, the market will have to come back down and I dont know about you, but I rather like to see a small drop, then a drop from where we are now. Granted many "fear" this will cause a depression... that line just sounds like bs to me. Monday's "stock drop" of nearly 800 points is NOTHING. it equates to 9%. In order for us to go into a depression, you would have to see the market drop 3 times more in one day to see a depression begin.
This market will hurt us overall in the beginning, but we need it to happen badly to help the market weed out the bad people and bad investments. The low market will bring out entreprenures (spelling?) and help this economy get back on its feet with new inventions, technology etc. Letting the government do this will only prevent us from moving forward and keep the idiots of Wall Street happy. As mentioned above, it will only burden us as tax payers.
My ranting is done for now... LOL
Clinton signed in a bill at the end of his second term that basically told banks: either you meet this quota of approving loans to certain ethnic groups in this country, or we will impose higher taxes and penalize you for not meeting the annual quota enacted within this bill.
So how can banks approve loans, when knowingly, most of those people could not afford loans period? You start playing with adjustable loans and play with figures to allow them to get into the loan for the home in hopes that they will flip the house and get a better home with the equity they made from the previous.
Well, some of them did this which of course jacked up the prices causing over inflation of the mortgage values. Others just bought the homes thinking "I can buy a $500,000 home for $1700 a MONTH! I CAN AFFORD THIS!!!!!!!!!!!!!!!!"
Then you start to see people not being able to make payments, small part because of what Dave pointed out, out sourcing of vital jobs that kept our country moving. Others just couldnt keep up with their adjustables once the Feds raised the interest rates. Not to mention home builders kept blowing off signs of a slowing housing market (creating an inventory of unsold homes on the market)
In comes the waves of people who are applying for another home while their current home begins to go under. Thus causing foreclosure rates to skyrocket. And now Wall Street feels the pinch and are now crying fowl over their screw up. The housing market was created to "stem" off the IT stock failure from the late 90's, which again was government stepping in. Had they left this alone back then, we would be fine today. The economy is "healthy" when the market goes up and down. Prevent the economy from going down, market keeps going up. Eventually, the market will have to come back down and I dont know about you, but I rather like to see a small drop, then a drop from where we are now. Granted many "fear" this will cause a depression... that line just sounds like bs to me. Monday's "stock drop" of nearly 800 points is NOTHING. it equates to 9%. In order for us to go into a depression, you would have to see the market drop 3 times more in one day to see a depression begin.
This market will hurt us overall in the beginning, but we need it to happen badly to help the market weed out the bad people and bad investments. The low market will bring out entreprenures (spelling?) and help this economy get back on its feet with new inventions, technology etc. Letting the government do this will only prevent us from moving forward and keep the idiots of Wall Street happy. As mentioned above, it will only burden us as tax payers.
My ranting is done for now... LOL
One day I'm for Government regulations, the next day I'm not. I don't think either way is correct.
What we need are smart leaders, and not greedy politicians. I mean we have failing leadership in every sector of our economy starting at the very top, the weak and lying George Bush. I mean his word is worth so little, it may of been the reason no one wants this bail out. Everyone (including me) believes he's crying wolf, and trying to save his fat cat friends.
Why can't we loan the money to these banks and force them to pay us, the US citizen back? Why don't we the American citizen get a piece of the company since we're spending the money to save it?
09-30-2008, 03:18 PM
#19
Because in that case, they would no longer have "free enterprise" they would have to pay us back in the long run.
But the government giving them money is perfectly fine under "free enterprise" because they are entitled to it.
Fear is one thing, but trying to indirectly tell people you ****ed up and expect them to flip the bill? Im sorry, but I dont have the patience to hear a grown man cry about how he mismanaged millions, let alone BILLIONS of dollars and is now asking me to fork my own tax monies out to let him stay sittin' pretty.
But the government giving them money is perfectly fine under "free enterprise" because they are entitled to it.
Fear is one thing, but trying to indirectly tell people you ****ed up and expect them to flip the bill? Im sorry, but I dont have the patience to hear a grown man cry about how he mismanaged millions, let alone BILLIONS of dollars and is now asking me to fork my own tax monies out to let him stay sittin' pretty.
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