edyvw
$50 site donor 2025
It is easy to sell that story.
Wow, Tesla laying off more than 10% of its world wide workforce, two Top Executives leaving
- Thread starter alarmguy
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The financial crisis of 2008-09 was a direct result of deregulation that started in 1999 when parts of Glass-Steagall was repealed. This allowed financial institutions to place their cash reserves into "risky" investments. Along came some geniuses who thought-up mortgage-backed securities and credit default swaps and the financial crisis was the result.
A key downfall with deregulation is the markets are left to regulate themselves, which they are clearly not qualified to do. The fox guarding the hen house...
Banks were left to regulate themselves; they flooded the housing market with cheap money to almost everyone including the unqualified.
No. I'm saying a socialist government dictates how they operate.
I'm not making excuses for anything. Start a business here in the United States. Do the same in a socialist country. Where do you think the government will control what you do more? And yes, it really is that simple.
edyvw
$50 site donor 2025
In EU? Lol. You are going into serious conspiracy theory territory.
edyvw
$50 site donor 2025
I have business in the US and Europe.
Not to mention the people placed in charge of the government agencies to oversee these industries are all from those industries. Truly, the fox guarding the hen house...
This was the direct result of deregulation; you just made the argument for stricter regulation. However, the idiots were not the borrowers; it was the highly unqualified bankers.
And yes, the government had to step in and fix the mess.
edyvw
$50 site donor 2025
A lot of people never heard let alone tried to understand subprime mortgage derivatives.
It is much easier to say: the idiot bought a house.
The banks were at fault because they believed the upswing in housing prices would never end. What were they thinking when they were loaning money to these idiots? That the price of an average suburban home would be $4 million in 10-15 years? If the banks had kept the 20% down rule that was in place for years, this would have never happened.
Instead they were more than happy to give interest only loans. Figuring in 5 years when their mortgages ballooned, they could sell and cash in their profits. It didn't work out that way. You had too many people in the housing market that had absolutely zero business there.
The banks were essentially the bigger idiots, in the bigger idiot theory. People were borrowing money like there was no tomorrow... And the banks were more than happy to give it to them. Because houses never go down in value.
Finally, just like the stock market in 1929 it collapsed, because there was no actual wealth in any of these transactions... Only paper and debt. The result was the same. The entire market collapsed. Simple common economic sense would have avoided this. Not more regulations.
edyvw
$50 site donor 2025
Ok, and we decided to shower them with money, while we let common folk to bankrupt. Truly free market. The loudest proponents of free market, were the ones first in line for government help.
Tesla engineers have repeatedly said real autonomous driving is 10-20 years out if it's even doable. Musk still claims that a robotaxi will be unveiled in August. If Tesla board members were smart Musk would have been part of the layoffs. Musk already said this morning that the severance pay was too low and they'll worknon correcting it.
edyvw
$50 site donor 2025
Musk needs another shiny object that will rile up sycophants.
No. The people who borrowed the money didn't have a gun to their heads. These people were financially irresponsible, period. They thought they were going to get something for nothing. A high dollar cash in with no risk.
Just because someone is willing to loan you money, doesn't mean you have to take it. The last thing to appear on the bottom of the last page on a home mortgage is your signature.
You own businesses, or you are employed to do business?
Follow me here:
1. In the olden days, banks lent their own cash reserves to customers with the expectation that they would get paid back. During this time banks vetted their customers and their ability to repay their loans.
2. In modern times, banks who originate loans sell those loans to other financial companies.
3. Poor oversight allowed these firms to bundle these mortgages into mortgage-backed securities which they sold to investors.
4. Investors now received the proceeds from mortgage payments and the banks who originated the loans were made whole and no longer had anything to do with the mortgages they originated.
5. The more mortgages the banks originated the more demand there was to bundle them into MBS to sell to investors. As you can see, at this point, the banks originating the loans are decoupled from the ability of the mortgagees to pay their mortgages.
6. When originating banks ran out of qualified applicants, they sold mortgages to unqualified applicants and to their surprise there was still demand for these subprime mortgages in MBS.
7. The ratings firms were also complicit. They took MBS comprised of sub-prime mortgages and gave them AAA credit ratings (for a fee). Rating agencies who didn't go along were afraid they'd be "black balled". How can a bundle of mortgages with mixed ratings somehow be deemed AAA?
Were the banks stupid? No, they made A LOT of money selling these crappy mortgages to idiot investors, they were made whole so no risk to them, and investors like me and you who had no idea what was going on were left holding the bag. This doesn't even get into the credit default swaps which were also a terrible idea.
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We didn't "let them" do anything. They did this to themselves. And many of them wound up back in apartments... Where they never should have left in the first place.
They did the same in 2008. They just did it with no money down because they, much like the people they were lending to, thought this was a golden opportunity to make money with minimal risk. It wasn't.
"In the olden days", the bank wouldn't talk to you unless you had at least a 20% down payment on the home you were trying to purchase. And your wife's salary wasn't even taken into account on the mortgage application. Because they figured she would end up at home pregnant soon after.
Look, you can run around trying to place blame on the banks and lending institutions all you want. It doesn't change anything. People in general are worse off today, than they were then, when it comes to their personal finances.
It's because they're idiots. Not because we don't have enough, "regulations". And it's getting worse every single day. You can't regulate people into financial intelligence.
https://www.nasdaq.com/articles/nea...r-$500-saved-in-2024-4-ways-to-buck-the-trend
You're not going to fix this with regulations. And THIS is the real problem, not the banking industry. This entire country has gone off the deep end with spending. Are you going to start regulating that? Perhaps we should. Because a lot of today's parents are as or more dumb financially than the kids they're raising.
edyvw
$50 site donor 2025
I own!
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