Oh lord, lets bail out the sub-primes.... - Page 3

Quicksilver · #21 12-08-2007, 09:36 PM

The demise of civilization as we know it will not involve moving to a more socialist system, or moving towards a more fascist system or Using tax money to give corporate welfare to the failing banks. We're talking total anarchy. That's what the demise of civilization means to me. When the bottom falls out this time it will effect the entire world and where it might end i don't think any of us have a clue.

Quote:

Originally Posted by Eric5273

Yes...this has been predicted for some time....

http://www.amazon.com/Communist-Mani.../dp/0451527100

So the choice of "what do we do when the system breaks?" is between moving to a more socialist system, or moving towards a more fascist system. Using our tax money to give corporate welfare to the failing banks is certainly a move towards fascism.

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Wagner · #22 12-08-2007, 09:37 PM

Quote:

Originally Posted by Eric5273

If you mean what is best for the wealthy elite who control most of the wealth in the US economy, then you have no argument from me.

But if you're asking what is best for the common masses, then the answer is to take the money that would be used to prop up the failing banks and use it to help the people who would be affected when the banks fail. At least then 100% of the money is being used to help the people.

When they give corporate welfare to the banks, you can bet that a fair share of that money goes to profit as is always the case with a corporation. Our tax money will ensure that the CEO gets his $100 million next year.

Alternatively, maybe the government should step in before the bank goes under and nationalize the bank, and then save it. I would have no objection to that. But to give the bank money so that they can continue to pay their top execs millions of dollars per year -- yes I have a BIG problem with that. That is nothing more than welfare for the upper class -- or I'll use that word again "FASCISM"

Ahh, you're in the group that requires the Citigroups as am I and I'd say probably the majority of people on this board (if not all).

Eric5273 · #23 12-08-2007, 10:01 PM

Quote:

Originally Posted by Wagner

Ahh, you're in the group that requires the Citigroups as am I and I'd say probably the majority of people on this board (if not all).

Yes, but I know that what's best for me is not necessarily what's best for most people. I'm also in the group that has a party when the dollar drops in value. I'm certainly in the minority with a lot of these issues.

Wagner · #24 12-08-2007, 10:55 PM

Quote:

Originally Posted by Eric5273

Yes, but I know that what's best for me is not necessarily what's best for most people. I'm also in the group that has a party when the dollar drops in value. I'm certainly in the minority with a lot of these issues.

Um, the majority needs Citigroups and such, not the other way around. How do you think all these WalMarts popped up to give people with 25K gross incomes per year plasma screens......

Eric5273 · #25 12-09-2007, 01:03 AM

Quote:

Originally Posted by Wagner

Um, the majority needs Citigroups and such, not the other way around. How do you think all these WalMarts popped up to give people with 25K gross incomes per year plasma screens......

Yes, one can only imagine how awful the world would be without WalMart.

(BTW, WalMart only sells those cheap plasma screens. They are made by Asian companies and their cost is not affected one way or the other by WalMart

)

Wagner · #26 12-09-2007, 08:55 AM

Quote:

Originally Posted by Eric5273

Yes, one can only imagine how awful the world would be without WalMart.

(BTW, WalMart only sells those cheap plasma screens. They are made by Asian companies and their cost is not affected one way or the other by WalMart

)

Ask a person making 30G's a year how they feel about WalMart. Easy to preach from a pedestal.

Meiac09 · #27 12-09-2007, 09:11 AM

I can understand saving the banks, but at the same moment, this is just the entire the whole "karma's a bitch" mechanism is kicking in. Its just too bad so many people were gullable enough to sign up for the SP loans.

Wagner · #28 12-09-2007, 09:16 AM

Quote:

Originally Posted by Meiac09

I can understand saving the banks, but at the same moment, this is just the entire the whole "karma's a bitch" mechanism is kicking in. Its just too bad so many people were gullable enough to sign up for the SP loans.

SP loans are/were fine if you knew what you were doing. Basically using a quick turn around of 4-6 months on a SP to simply get you in the door and converting the loan shortly after. That was great for 100% financing deals where a regular loan would have required down-payment. However, as with many good things, they were taken advantage of by people with no understanding of the concept of a ARM or negative amortization(possibly the most dangerous loan ever!)

People in the process took advantage of people who didn't have a concept of what they were getting into. As Alan Greenspan said years ago, adjustable SP loans are a great method for new buyers to get into a home as long as they know the ramifications of keeping it.

Meiac09 · #29 12-09-2007, 11:41 AM

Quote:

Originally Posted by Wagner

adjustable SP loans are a great method for new buyers to get into a home as long as they know the ramifications of keeping it.

Something the Billboards along Route 1 in Danvers don't do a good job of advertising until the commissioned loan agents have already sealed the deal.

B-Line · #30 12-09-2007, 03:12 PM

I have an idea.

Instead of the gov't giving money to the banks or the private home owners who did not bother to recognize the potential issues of a five year, interest only, adjustable rate mortgage....

The Gov't should instead give that earmarked money to homeowners who opted to go with a traditional 30 yr. fixed mortgage and who continue to pay their mortgages on time.
Then those people, can go out with the money the gov't gives them. They can buy the foreclosed, adjustable fixed rate homes at wholesale prices. Those homes can than be rented out as an income property, managed by people who have rational investment ideas and whatever profits come from renting these homes can than be taxed as income and money given back to the gov't..

B

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