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how is the economy effecting you?
danny_galaga:
--- Quote from: Endaar on August 13, 2010, 10:44:53 pm ---
--- Quote ---The value of the defaulted mortgages is worth more than the value of the houses the banks suddenly have a bucketload of...
--- End quote ---
True, but let's not forget something...IF someone bought a house they could afford, it wouldn't matter to them if it was upside-down.
--- End quote ---
Very obviously. A simpler example is getting a loan for a car. The moment you buy it it's losing value, approximately 50%/5 years. That doesn't stop a person from continuing to pay for it. I was pointing out the problem the BANKS now have, not the problem the borrower has. Which was probably not worth pointing out, since everyone knows this. I was just being glib...
Endaar:
--- Quote ---Which was probably not worth pointing out, since everyone knows this. I was just being glib...
--- End quote ---
Sorry, I wasn't trying to jump on you. I just wanted to explicitly point out the buyers' role in this mess. I actually think a lot of people don't understand or don't want to acknowledge that it takes two to tango. It's easier just to blame the banks.
Endaar
saint:
--- Quote from: Endaar on August 14, 2010, 10:39:33 am ---
--- Quote ---Which was probably not worth pointing out, since everyone knows this. I was just being glib...
--- End quote ---
Sorry, I wasn't trying to jump on you. I just wanted to explicitly point out the buyers' role in this mess. I actually think a lot of people don't understand or don't want to acknowledge that it takes two to tango. It's easier just to blame the banks.
Endaar
--- End quote ---
The banks deserve a much bigger share of the blame from a societal perspective. When I make a bad financial decisions, I affect me (and my family).
When the bank makes bad financial decisions, they effect... well, the entire economy as we saw.
I have whatever financial skills I have gained and use those to the best of my ability. If I screw up, well that's as likely to be me just screwing up as it is deliberately doing something stupid.
The banks are supposed to be professionals at financial matters with expert skills and decisions making standards. When they screw that up, there's a higher level of responsibility than "oops my bad" imho. Banks making one or two mistakes is an "oops." Banks systematically making a series of unwise loans sufficient to cause an economic crisis is at best a demonstration that the decision makers were unqualified, and at worst a demonstration that their decisions were just short of criminal.
If I'm drunk, a competent bartender will cut me off. If I have a bad driving record, a competent judge will take away my license. If I'm a bad credit risk, a competent banker will.... give me a loan?
I don't believe the end-consumers deserve a pass by any means, we certainly live in a society of "I want it now and will pay for it later" but the banks deserve to be beaten with a much bigger stick.
divemaster127:
The 1.1 trillion dollars stimulus was a flop I was listening to Hanitty & he stated if the government had just split this money up to all Americans it would have come to $55,000.00 this would have been a far better stimulus than the joke we had
dm
saint:
--- Quote from: divemaster127 on August 14, 2010, 11:50:46 am ---The 1.1 trillion dollars stimulus was a flop I was listening to Hanitty & he stated if the government had just split this money up to all Americans it would have come to $55,000.00 this would have been a far better stimulus than the joke we had
dm
--- End quote ---
Don't believe everything anything much of what you hear from Hannity.
1.1 trillion, divided by 305 million (http://politics.usnews.com/opinion/articles/2008/12/31/us-population-2009-305-million-and-counting.html), works out to about $3600 per person. Near as I can tell from searching online, actual amount spent from the stimulus is $800 billion, making the per person amount roughly $2600 per person.
So, would we have been better off giving $2600 to each American? Dunno. Debate that if you will, but $2600 sure isn't as sensational as $55,000 per person. Factor in on top of that that much of the stimulus is expected to be repaid and not just given away. Now how much is left per American?
Whether or not the stimulus is effective, and if there are shennanigans going on in the repayments, and so forth are excellent and important topics of debate. They were good topics of debate when Bush put out the first stimulus as well. Depicting Obama as burning $55,000 per American is questionable, at best.
(Yes, it's a given that liberal spin jockies aren't immune from this either)
--- saint
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