BANKS : Not learned their lesson?
@redyellowblackdog (10629)
United States
October 18, 2007 7:21am CST
The title of this article, "Lenders still play fast and loose.", sums it up. Think the sub prime crises is on its way to being over? Maybe not.
http://www.latimes.com/news/opinion/la-ed-mortgage17oct17,0,1205078.story?coll=la-opinion-leftrail
If banks really are pushing the envelope of what they can get away with, what do you think will be the result?
Will the government close some of these banks down? Will the stock market crash? Will an economic slow down be the result? Does it all not even matter?
What do you think?
1 person likes this
3 responses
@Aussies2007 (5336)
• Australia
19 Oct 07
Yes... it is a sad state of affair.
I guess this is permitted in America under the flag of freedom that Americans like so much to be proud of. The freedom to do whatever you like.
While some people lose their home in Australia... it is usually their fault... not their bank. The banks here will not lend you more than you can afford. But some people try to cheat the system by getting two separate loans.
However... it is a different story with the credit card companies who never stop to offer more credit to their client... without doing any checking of their financial situation.
Most Australians are in debt up to their neck on credit cards. And the ones with the biggest debt are those who have the least possibility of repaying it.
It would make my day to see all those people going bankrupt... so that the credit companies never get their money back. And I reckon it will happen eventually to a certain extent. People cannot afford to repay their credit card... but they keep getting more credit. It is common these days for people to have a debt of between $30.000 and $50.000 on Mastercard. They barely manage to pay the interests on that every month.
2 people like this
@redyellowblackdog (10629)
• United States
19 Oct 07
Through out history, usury has substituted for chains to bind people into slavery. Perhaps, they should start teaching this lesson from history.
1 person likes this
@redyellowblackdog (10629)
• United States
20 Oct 07
Politicians are what use to be called the "house slaves". These were the more intelligent favored slaves of the master. They dressed nicer, had more privilages, and were often involved in the management of the "field slaves".
What I favor about our system is that if one is disciplined enough, you can get out of debt, move to a rural area, and live a simple life.
1 person likes this
@Aussies2007 (5336)
• Australia
19 Oct 07
Nice to meet a wise person with an understanding of life and the system we live under.
While a perfect system has not yet been invented (because they don't want to)... Capitalism only favorize a minority of people who have been taught how to exploit the poor to gain wealth and power.
It is nothing more than slavery. Politically correct slavery... because it is done with the blessing of politicians.
1 person likes this
@Destiny007 (5805)
• United States
18 Oct 07
I think it does matter.
The banks will lose money which will drive everyone's interest rates up, and the people who default will have a black mark on their credit rating which will haunt them for eternity.
Higher interest means that money will get tighter which will only slow the economy, and the monied investors will win big.
Not knowing enough about the stock market, I will venture to say that I don't think it will crash, but it could dip in some financial areas.
Banking stock may drop for a while but think it would be a temporary thing.
"This too shall pass"
Either that or the market will crash, and people will be flying off of tall buildings.
There, either way I am correct.... :)
2 people like this
@redyellowblackdog (10629)
• United States
18 Oct 07
The funny thing about interest rates is that it makes almost no sense that they aren't going up.
Inflation is actually ridiculously high.
I base this on the exploding money supply. More money means it is worth less, no matter what government figures say.
So, if inflation is high, how are banks going to have any real profit corrected for inflation if interest rates are lower than the rate of inflation?
Something is definitely going on that ain't covered in the normal text books on economics.
This whole thing is corn-fusin' to me.
1 person likes this
@Destiny007 (5805)
• United States
18 Oct 07
Shoot, I completely overlooked that bit about inflation.
Yes you are correct.
Common sense tells me that there is going to be a payday sometime, and there will be a major correction.
You can't just keeping printing more money and have it retain it's value, and you can't keep providing cheap loans at a loss.
Eventually something is going to have to give.
I think the market may crash at that.
Are they doing this deliberately, I mean these people are surely a lot smarter then I am concerning financial matters, so what is the deal here?
2 people like this
@redyellowblackdog (10629)
• United States
19 Oct 07
"So what is the deal here?"
Pondering this question too long turns one into a paranoid loonie.
My advice is too keep a low profile, live in a rural area, be semi-independent as much as possible, and get your financial house in order as no one knows what will be the result.
1 person likes this
@theprogamer (10534)
• United States
21 Oct 07
Its like a rubber band. There is no way all of this tension (i.e. the lending situation) can go on forever. Eventually there will be a snapback and the recoil will be devastating. Combine that with product recalls, poor earnings from some companies, skyrocketing oil prices, concerns over energy futures and you really get a bleak picture. Despite what some flapping heads want others to think. -_-
1 person likes this
@redyellowblackdog (10629)
• United States
21 Oct 07
Yes, it is time to:
1) Get out of debt
2) Make yourself essential at your place of work
3) Consider a second part time job
