Jump to content

Anybody interested in current economics??


Recommended Posts

right, but people are sheep, really stupid sheep and paid more they than could actually afford for houses that were worth less than they paid for them. just because a bank tells you that they will lend you a million dollars, when you only have $5k in cash, so that you can buy a house worth only $500k doesn't mean you have to do it.

Absolutely Splink. But the temptation of keeping up with the Joneses and possibly doing them one better was too much to resist. And let's not forget, these people were listening to and being advised by "expert" mortgage lenders and underwriters.

when you say

"expert" mortgage lenders and underwriters
you mean people who stood to profit from the stupidity of the sheep? the three card monte guy on the corner promises me each and everyday that if i just take the time to stop and play, i will absolutely win. he's an expert on the game. do you think i should stop and play? should i bet my whole pay check? the guy who owns the table says it's a sure thing that i will win. i should totally believe him, right? i mean, why would he lie to me?
  • Like 1
Link to post
Share on other sites
  • Replies 141
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

An economist's take on Fed's August 27, 2010 speech on economic conditions and monetary policy...     Leeds on Finance, the August 30 column

exactly.

because this is america and biting off more than one can chew through reliance on other people's willingness to also bite off more than they can chew, in order to facilitate your greed, is the america

right, but people are sheep, really stupid sheep and paid more they than could actually afford for houses that were worth less than they paid for them. just because a bank tells you that they will lend you a million dollars, when you only have $5k in cash, so that you can buy a house worth only $500k doesn't mean you have to do it.

Absolutely Splink. But the temptation of keeping up with the Joneses and possibly doing them one better was too much to resist. And let's not forget, these people were listening to and being advised by "expert" mortgage lenders and underwriters.

when you say

"expert" mortgage lenders and underwriters
you mean people who stood to profit from the stupidity of the sheep? the three card monte guy on the corner promises me each and everyday that if i just take the time to stop and play, i will absolutely win. he's an expert on the game. do you think i should stop and play? should i bet my whole pay check? the guy who owns the table says it's a sure thing that i will win. i should totally believe him, right? i mean, why would he lie to me?

Rich can defend himself - but I'd point you towards those quote marks.

Link to post
Share on other sites

right, but people are sheep, really stupid sheep and paid more they than could actually afford for houses that were worth less than they paid for them. just because a bank tells you that they will lend you a million dollars, when you only have $5k in cash, so that you can buy a house worth only $500k doesn't mean you have to do it.

Absolutely Splink. But the temptation of keeping up with the Joneses and possibly doing them one better was too much to resist. And let's not forget, these people were listening to and being advised by "expert" mortgage lenders and underwriters.

when you say

"expert" mortgage lenders and underwriters
you mean people who stood to profit from the stupidity of the sheep? the three card monte guy on the corner promises me each and everyday that if i just take the time to stop and play, i will absolutely win. he's an expert on the game. do you think i should stop and play? should i bet my whole pay check? the guy who owns the table says it's a sure thing that i will win. i should totally believe him, right? i mean, why would he lie to me?

Rich can defend himself - but I'd point you towards those quote marks.

i saw them bonner, but thanks

Link to post
Share on other sites

right, but people are sheep, really stupid sheep and paid more they than could actually afford for houses that were worth less than they paid for them. just because a bank tells you that they will lend you a million dollars, when you only have $5k in cash, so that you can buy a house worth only $500k doesn't mean you have to do it.

Absolutely Splink. But the temptation of keeping up with the Joneses and possibly doing them one better was too much to resist. And let's not forget, these people were listening to and being advised by "expert" mortgage lenders and underwriters.

when you say

"expert" mortgage lenders and underwriters
you mean people who stood to profit from the stupidity of the sheep? the three card monte guy on the corner promises me each and everyday that if i just take the time to stop and play, i will absolutely win. he's an expert on the game. do you think i should stop and play? should i bet my whole pay check? the guy who owns the table says it's a sure thing that i will win. i should totally believe him, right? i mean, why would he lie to me?

Mr. Bonner answered. But to add - they were sold a bill of goods by professionals, not by street corner hustlers. Now, as it turned out, those professionals were wolves in sheep's clothing - and worse than the obvious hustlers.

 

There were enough mistakes to go around. The issue is to move forward and get out of this as smoothly as possible and learn from mistakes made.

Link to post
Share on other sites
they were sold a bill of goods by professionals, not by street corner hustlers. Now, as it turned out, those professionals were wolves in sheep's clothing - and worse than the obvious hustlers.

 

Rich, What you say might have been true in a few cases but you are painting with too broad of a brush. Other villains were the folks in power that basically forced lenders to operate in the subprime market and in other questionable loan arenas. And then there was the just plain over-exuberance that someone has already mentioned here.

 

Having said the foregoing, we shouldn't be looking back.

 

The purpose of this thread is to discuss where we are going rather than where we have been.

Link to post
Share on other sites
they were sold a bill of goods by professionals, not by street corner hustlers. Now, as it turned out, those professionals were wolves in sheep's clothing - and worse than the obvious hustlers.

 

Rich, What you say might have been true in a few cases but you are painting with too broad of a brush. Other villains were the folks in power that basically forced lenders to operate in the subprime market and in other questionable loan arenas. And then there was the just plain over-exuberance that someone has already mentioned here.

The subprime argument is a red herring. People who took out jumbo loans are more likely to default than subprime borrowers.

 

Biggest Defaulters on Mortgages Are the Rich

Link to post
Share on other sites
they were sold a bill of goods by professionals, not by street corner hustlers. Now, as it turned out, those professionals were wolves in sheep's clothing - and worse than the obvious hustlers.

 

Rich, What you say might have been true in a few cases but you are painting with too broad of a brush. Other villains were the folks in power that basically forced lenders to operate in the subprime market and in other questionable loan arenas. And then there was the just plain over-exuberance that someone has already mentioned here.

The market shares of FNM/FRE as a % of new mortgages declined during the entire housing bubble. You do realize that right? Its like the easiest way to see that all of the blame CRA nonsense is just that, nonsense.

 

Indeed it was the exact same banks that funded Richard Baker's retirement that blew themselves up.

 

If the right had any insitutional memory at all they would recall how in 2002 they were calling for FNM and FRE to be shutdown because it was impossible for C and WFC et al to compete with them. It was only in 2008 that the right remembered they wanted them closed because "They weren't safe"

Link to post
Share on other sites
are you kidding me - you say simply not true before you deleted - prove it.

 

Anthony, Actually the "not true" was directed toward another posting but yours intervened before mine reached the board; thus, I deleted it because it was not intended for your posting and would appear to do so.

 

Be calm, I was not posting to you!

Link to post
Share on other sites

Believe me, it's all going to be ok. Not for every country and not for every person, but for you.

 

As always in these discussions, there are only two important questions:

 

1) Is the US government encouraging foreigners to purchase overvalued US property or public debt? If so, it's doing its job well regardless of the political agenda.

 

2) Are you buying property that is overpriced compared to where it's been and where it can be just because you need to make some yield? If so, you're not doing your job regardless of what the people selling it to you are telling you. (corollary: is something terrifically under-priced and you're not buying it because everyone is telling you the world is ending?)

 

 

Everything else just isn't important, at least not in your lifetime.

 

eta: of course I wish everyone a long and prosperous life that will extend past the sunset of capitalism, but until then this is the stuff that matters

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...