Korean Job Discussion Forums

[huffdaddy]

[Ya-ta Boy]

[Octavius Hite]

[thepeel]

Hite:

The underlining problem here is that there was too much credit in the system. No matter how you regulated the industry, loop holes would have been found and naive, dishonest or otherwise uninformed consumers would have had access to too much credit. I don't think you can regulate this away.

This is Greenspan's fault. He created too much money which lead to asset bubbles and the financing that fed off it.

I don't think that there is a regulatory fix to this beyond sanity in the Fed/BOC.

[Ya-ta Boy]

[thepeel]

How will I go on. I make spelling mistakes. Man.

[Octavius Hite]

The question Peel is how do we fix this?

Again, I agree the middle class people who wanted to look rich should lose their homes.

But

IN places like Cleveland we are seeing whole neighborhoods being abandoned. SO not only are people losing their homes but neighbors are collapsing, cities are losing their tax bases, cities are being stuck with huge demolition bills (I have heard 300 million in Cleveland alone), American banks are turning to places like Abu Dabi for financing (which are just loaning back the oil dollars we give them cause of the dependence on middle east oil), foriegn lenders are going bust (Northern Rock), and the entire global economy is on the verge of a slowdown/downturn/recession/whatever-the-f*ck you wanna call it.

A solution needs to be found for everybody's sake.

[thepeel]

I don't think that a fix is available that will not make the situation worse. A recession is needed and a shift back to manufacturing and production. Housing prices are coming down and rents with them. A long, deep recession should clear all this up and ultimately help re-industrialize places like Cleavland (unless the $ actually does collapse).

[Czarjorge]

Well, it would never happen, but the rich could be taxed appropriately, and that money could be used bail out the people who deserve to be helped.

And lets be clear, the vast majority of people were not middle class folk using equity to live as upper middle class. The majority of sub prime loans were issued to people in low income areas. These loans were the only option available to poor people who worked hard but couldn't break the cycle of poverty, and who wanted to purchase a home.

This blow up happened in Chicago while I was living there two, three years ago. Essentially lenders presented the loans as the only option available. You could drive through poorer neighborhoods and the only banking institutions were the subprime lenders. It was messed up, and in Illinois they tried to stop it, I moved before I heard anything specific about what ending up happening. You should be able to find some good stories on it in the Chicago papers online.

The real villains in this are lenders who were trying to make money while exploiting the poor. The new the loans were going to be defaulted on eventually, and the lender would end up in with the property and all the interest they had earned up to that point.

This time it blew up in their faces. Boo freaking hoo. This is more about helping the lenders than the people who might lose their homes. If someone should sacrifice it should be the nefarious bankers. The profit motive is way out of control in the US.

[Ya-ta Boy]

[Kuros]

[thepeel]

[venus]

[mindmetoo]

The government has previously bailed out Chrysler, the airlines, Savings and Loans. Oh well.

[yawarakaijin]