here is a link, that will explain the current u.s. economic situation regarding the bad loans.
subprime
i think it belongs here, rather than "funny stuff" because it's politically relevant, and the information is open to discussion.
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here is a link, that will explain the current u.s. economic situation regarding the bad loans.
subprime
i think it belongs here, rather than "funny stuff" because it's politically relevant, and the information is open to discussion.
This was made well before the crash, pointing out the insanity
[youtube]UC31Oudc5Bg[/youtube]
Thanks, I found it quite informative.
Dress it up however you like- "tranche", really?- but shit is shit and fuck you is fuck you and no amount of politesse can cover it up.
Like any Ponzi scheme, everyone was happy passing on these crap investments and taking their cut in the process, until we get to last guy in line.
He can't find a buyer and is so leveraged that he can't absorb the loss and suddenly being the macho Gordon Gekko highflyer ain't so much fun anymore.
Playing in a high-risk game is lots of fun as long as it's other people's money and the risk is only theoretical but when the hot potato lands in your lap- and stays there- they whine like babies.
Be nice if we could cut the tether of "public money", eh?Quote:
Originally Posted by clocker
Never mind partisanship - this is a problem born of government and the political process; they ought to begin the clean-up process with a few public hangings, and I mean that sincerely. ;)
Complicit maybe, but originators?Quote:
Originally Posted by j2k4
Surely the financial industry must bear responsibility for most of this problem.
I mean really, predicating an entire investment strategy on the premise that "housing will NEVER go down in value" ranks right up there with my personal strategy of basing retirement on a lottery win.
Neither concept has worked out too well.
Mrs T had a similar consumer led boom in the 1980s which came unstuck as house prices fell and negative equity caused sleepless nights. It is remarkable how history repeats itself (no one listening tends to make her do that).
The Long Johns bit above was, as ever, very good and surprisingly prophetic.
I feel that the people responsible for the mess were well aware of history and the probable result of their actions but didn't care as long as they were making money and thought they could pass the fallout onto someone else.Quote:
Originally Posted by Biggles
First saw them on a show a while back, I thought it was called bird and fortune. I can only get skits online now and they are hard to find. There was a fantastic one about how CEO pay works, the need to reward good results and also to compensate for failure, but I cant find it. I think the brilliance is that they don't have to do anything but say how things are to be funny.Quote:
Originally Posted by Biggles
John Bird and John Fortune known as the Long Johns appear on Bremner, Bird and Fortune.Quote:
Originally Posted by devilsadvocateI feel that the people responsible for the mess were well aware of history and the probable result of their actions but didn't care as long as they were making money and thought they could pass the fallout onto someone else.
First saw them on a show a while back, I thought it was called bird and fortune. I can only get skits online now and they are hard to find. There was a fantastic one about how CEO pay works, the need to reward good results and also to compensate for failure, but I cant find it. I think the brilliance is that they don't have to do anything but say how things are to be funny.Quote:
Originally Posted by Biggles
One of my favourites from early 2003
[youtube]http://uk.youtube.com/watch?v=OkkEEPcQrkk[/youtube]
Absolutely true, but I think Freddie and Fannie belong in the same basket with the rest; they all played fast and loose with the government safety net, which existed to some extent or another in every case.Quote:
Originally Posted by clockerComplicit maybe, but originators?Quote:
Originally Posted by j2k4
Surely the financial industry must bear responsibility for most of this problem.
I mean really, predicating an entire investment strategy on the premise that "housing will NEVER go down in value" ranks right up there with my personal strategy of basing retirement on a lottery win.
Neither concept has worked out too well.
Now, the feds have usurped private interest in Freddie and Fannie, using the fantastical excuse they can do a better job, and the others are demanding a piggyback, lest the feds be accused of monopolizing real-estate lending.
I daresay the feds fomented this cluster-fuck with their "complicity".
Full faith-and-credit, my ass.
Neat for them, but we get the shitty end of the stick, as usual.
You think the IRS hassles people?
Just wait.
What does your crystal ball reveal?Quote:
Originally Posted by j2k4
What possible upside could there possibly be to the idea of Uncle Sam getting into the mortgage business on the scale of Freddie and Fannie?Quote:
Originally Posted by clockerWhat does your crystal ball reveal?Quote:
Originally Posted by j2k4
Remember - this isn't just the limited oversight formerly exercised, this is full and complete control, from A to Z; they now own F & F.
Do you really want the feds holding your paper?
Having total and unfettered entree to all of your financials?
If your answer is yes, think in terms of your prior-expressed concerns over the Patriot Act...would you feel as paranoid about a republican administration at the controls as I would about a democrat administration?
Edit: re read point I was replying to and may not be as it read to me at first