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The nice thing about retirement is that there is always tomorrow. You do have to have a reason to get up in the morning but that is what hobbies and honey do's are for. But if you want to up and go somewhere you go.
VERY WELL SAID!! I agree that most americans have lived beyond thier means for a long time. It's too easy to buy, buy, buy on "easy payment" plans. Now it's time to PAY THE PIPER.. I will disagree with the argument that the lenders need to be sent packing.. Nobody said you (general) HAD to sign, there is a DISCLOSURE page that will tell you what you are signing up for..If you didn't read it and knew what could happen then shame on you!! anyway I am done ranting..How's retirement? I'm two weeks away from it, NOT debt free but able to breathe
Do you guys seriously think that 20 trillion has evaporated from the world economy because of a few sub-prime home loans in the United States?
This has nothing to do with the American consumer, although the media and central Banks are trying to spin it that way.
Do you guys seriously think that 20 trillion has evaporated from the world economy because of a few sub-prime home loans in the United States?
It's not a "few" bad loans. Think of it this way, you have a major problem with (let's say) only 15% of the foundation of a very tall structure. If that 15% completely fails, is the rest of the structure in jeopardy of collapsing? Of course it is.
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This has nothing to do with the American consumer, although the media and central Banks are trying to spin it that way.
Yes, it has everything to do with the American (and world) "consumer."
After all, what is an "economy" if it isn't.......... consumers....... purchasing goods made by other.........consumers?
It's not a "few" bad loans. Think of it this way, you have a major problem with (let's say) only 15% of the foundation of a very tall structure. If that 15% completely fails, is the rest of the structure in jeopardy of collapsing? Of course it is.
Yes, it has everything to do with the American (and world) "consumer."
After all, what is an "economy" if it isn't.......... consumers....... purchasing goods made by other.........consumers?
Sub-prime lending delayed this crash from happening for a couple years, it did not lead to or cause the crash.
And the second part, I'm not sure what your point was. The consumer has cut back out of fear for good reason.
Do you guys seriously think that 20 trillion has evaporated from the world economy because of a few sub-prime home loans in the United States?
This has nothing to do with the American consumer, although the media and central Banks are trying to spin it that way.
I will disagree with you. But that's what makes the good ole U.S.A. what it is, our RIGHT to disagree. For MANY years I have seen MANY people buy "on credit" to keep up with the who evers, and refinance(bet) the house. If they didn't take the time to READ so that they knew the payment could (WOULD) ADJUST, then shame on them. that was the point of my post. It became a domino effect and as one neighbor walked away from his OBLIGATION, the next door neighbor decided that the value of his house is less than he owes too and walks away too. Sacramento area had a "run" for a few months where a person would "buy" a bank repo that was larger than the house they were in and as soon as they "qualified" for the loan they would default on the house they were in. Moving UP for LESS.. fraudulent? probably but prove it..what drives the american economy...spending......by who?....the AMERICAN CONSUMER...without him/her YOUR business would fail!!!
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Obama will get in and tax those rich buggers to make up the difference and give it to all of us "middle income" folks, and all will be well, since all us middle income people will spend our new money on the stock market. Unfortunately, the rich will no longer be rich and it won't make any difference anyway. Look at the Jimmie Cater days, same deal, different day. I hope Obama wins, so America can really see what the Democrats and socialists really want out of this country, and then we will go back to the right...again.
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I and thousands of real economists (of which I am not one) disagree with you.
I'm not even sure what you mean. Maybe it would help me understand if you linked to something that gives specifics on your point.
Well, to put it another way, even if all borrowers continue to pay and no new loans are given then the market for securities and derivatives still collapses. Without new money flowing into the system, then the speculative value of the loans drops. Lots of money was borrowed based on the speculative value of the loans.
The market for home loans was drying up meaning the system was going to collapse. Allowing sub-prime people to borrow kept the party going for a couple more years.
Last edited by checkthisout; 10-12-2008 at 11:16 PM.
Obama will get in and tax those rich buggers to make up the difference and give it to all of us "middle income" folks, and all will be well, since all us middle income people will spend our new money on the stock market. Unfortunately, the rich will no longer be rich and it won't make any difference anyway. Look at the Jimmie Cater days, same deal, different day. I hope Obama wins, so America can really see what the Democrats and socialists really want out of this country, and then we will go back to the right...again.
What do you think of the fact that he is a Muslim and was personally involved in blowing up the World Trade Centers?
Well, to put it another way, even if all borrowers continue to pay and no new loans are given then the market for securities and derivatives still collapses. Without new money flowing into the system, then the speculative value of the loans drops. Lots of money was borrowed based on the speculative value of the loans. The market for home loans was drying up meaning the system was going to collapse. Allowing sub-prime people to borrow kept the party going for a couple more years.
I'm not really sure what you're trying to say here.
Even if the housing market retracts (and it does because it is cyclical), that would not lead to what we are seeing now.
Do you have a link that fleshes your theory out a bit more?
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