The Rolling Jubilee

[Hasbinlulz]

The working man is a sucker.

[dredge]

Originally Posted by Hasbinlulz [You must be logged in to view images. Log in or Register.]

The working man is a sucker.

Toil is stupid
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[Black Jesus]

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[HeallunRumblebelly]

Originally Posted by pasi [You must be logged in to view images. Log in or Register.]

Curious, do you believe the financial system deserved a bail out?

Most of the bailing out included governments honoring debts. Most of these banks and financial institutions were FDIC insured and eligible for such bailing out, though the fact that it happened on such a large scale was the issue this time.

The obvious answer is to put risk back in the banking world. You can lend money out at lower rates with government backing, but when your loans go to shit (as in this case they were intended to go to shit, so they could throw out as many loans as possible, because in large part the government forced them into risky lending) sometimes you gotta suck it up and take the loss. That is one of the primary purposes of a credit rating: the likelihood of this person fucking you and hurting your business. As it stands it's just an excuse to charge people more on loans of all kinds.

[HeallunRumblebelly]

Originally Posted by Ephirith [You must be logged in to view images. Log in or Register.]

If you lost your home, in what universe is it not your fault? Why do they get to blame external circumstances for a decision which, ultimately, was made by them? When you buy a home on borrowed money, you are assuming risk, nobody is responsible for helping you out if the decision blows up in your face.

Some people managed that risk better than others by exercising fiscal responsibility-- saving their money and investing. Overwhelmingly, these were the people who made it through the crash with their homes.

Predatory lending? Nobody showed up at their door and forced them at gunpoint to take a low money down, high interest rate loan. By that logic Coca-Cola is engaging in predatory vending because their machines sell sugary drinks that damage your health and people buy them anyway.

This isn't lovely stuff to hear, but it's one of the fundamental principles of capitalism-- personal responsibility.

Sorta right, but you have to look at a lot of these loans in context. The housing bubble was causing inflation of home prices. If they didn't buy then, under market projections of the time, they'd pay vastly more in just a few years buying the same home. On the same token, real estate speculators were doing the same thing for many years prior. It's hard to only blame the rats that were hit by the trap, rather than the one's who escaped with the cheese.

[HeallunRumblebelly]

Originally Posted by HeallunRumblebelly [You must be logged in to view images. Log in or Register.]

Sorta right, but you have to look at a lot of these loans in context. The housing bubble was causing inflation of home prices. If they didn't buy then, under market projections of the time, they'd pay vastly more in just a few years buying the same home. On the same token, real estate speculators were doing the same thing for many years prior. It's hard to only blame the rats that were hit by the trap, rather than the one's who escaped with the cheese.

I should also point out that what happened in the housing bubble (overvaluation of a product, rising cost, loans being given out with no interest to the one receiving the loan's ability to repay) is currently happening in higher education and healthcare and they make the housing bubble look tiny. This time, however, it's the general populace who bear the load and will most likely continue to suffer as fixing these problems would impact two very large and very profitable sectors of our economy. As I look around Fort Wayne I notice that the only places building are places receiving government money (hospitals and universities).

[Tasslehofp99]

If you were dumb enough to buy a house you can't afford, then you don't deserve to keep it.

[dredge]

Originally Posted by Tasslehofp99 [You must be logged in to view images. Log in or Register.]

If you were dumb enough to buy a house you can't afford, then you don't deserve to keep it.

did you pay cash for your house, Fuck Face?

[vaylorie]

Originally Posted by dredge [You must be logged in to view images. Log in or Register.]

did you pay cash for your house, Fuck Face?

I didn't pay cash for a house but I bought one that I can afford. There is a difference between what the bank approves you for and what you can afford. The bank told me I can 'afford' to take out a loan for about $600K but instead I took out a loan for a $250K house because thats what I can really 'afford' comfortably.

The banks were wrong to give people credit when they didn't deserve it (as seems like the case from your earlier post), but at the same time, if I'm signing on a line for a $250K debt, I'm going to be sure that I know what it is and that I can pay it. The vast majority of people that got 'taken advantage of' were blinded by the "I want it now" mentality and assumed debt that they had no realistic way to pay back. No matter who is telling you that it's going to be ok you still have a basic responsibility to understand what you are agreeing to.

It's not exactly correct to say that greedy lenders made someone lose their house. It would be correct to say that in some cases greedy lenders convinced stupid people to take on debt they couldn't afford. It would probably also be correct to say that in many cases, greedy people took on more debt than they can afford because they 'wanted' a bigger house than they could actually afford and were looking for excuses to be able to do it.

[dredge]

ok, Smart guy.
How much can you "afford" if you lose your job and health insurance and get hospitalized for 3 weeks?

Good thing you got that $250k buried in the back yard