GoFuckYourself.com - Adult Webmaster Forum - View Single Post - wow ... protests of the 99% ... now in 78 nations!

kane · 10-16-2011, 04:00 AM

Quote:

Originally Posted by Jesus H Christ

Fuck you and your Limbaugh parrot shit. He's a clown. The true reality is we are all at fault, so let me clue you in.

The SEC, Congress, Fed Reserve, and The People created this problem. In the beginning poor regulation and lack of enforcement initially created this problem.

The SEC - knew AIG was insuring toxic loans and also turned a blind eye to unregulated credit default swaps. The system was so corrupt the SEC, a government agency, destroyed 1000's of complaints from private watchdog groups. Government agency are strictly forbidden to destroy any records of anything. To date, nothing has been done about it.

Congress - Instead of practicing our true capitalistic system and letting these banks fail, Congress voted in favor for the Fed to flood massive amounts of money into the system attributing more to our large debt, not once, but three times now. Now when the markets/business even get a bit shaky, they want a QE3. In short, business/markets transformed to socialist who feel they are entitled for the FED to step in and calm the markets.

Fed Reserve- Like Congress the FR refuse to let the markets/business correct itself and let business and banks fail. Now FR is pumping (QE) trillions in low/no interest loans to keep the system afloat preventing true capitalism, creating an entitlement socialistic business arena that will eventually fail. Meaning, why should I work hard when my competitor can simply expand/carve out a larger market share with endless ZERO interest FR capital?

The People- who bought into the fact a $35k-$45k yearly income could buy a $275k home or more insuring their stupidity not understanding a variable mortgage loan application. They simply bought a home they could not afford out of ignorance and learned the hard way the number one rule of investing? Don't invest in something you don't understand. Now they feel suckered by the banks, when in truth, their own ignorance was at fault.

The true victims are homeowners who can afford our mortgages that now suffer from property devaluation because others were too stupid to understand their loan condition/terms as these homes now sit empty on our streets.

It's truly hard to feel sorry for them because they're completely oblivious that they're also to blame for this massive problem. Although, it's easy to see why they're so upset when they watch these very same banks get flooded with zero interest capital as they're being foreclosed on as they still refuse to take responsibility for themselves. It's truly pathetic.

You make some good points but let me give you a little more information and see if you change your mind at all. Between 2005 and 2008 40% of the homes purchased with sub-prime mortgages were second homes meant as investment homes. These were houses people were going to flip or rent out. The reason they thought this was a good investment is because between 1997 and 2005 the average house in America increased in value by 124%. People thought they could make some easy money and ended up being wrong.

So I ask, is this not just capitalism at work for the people, yet a self inflicted wound for wall street? If GM designs a new car that they think is going to be a huge seller and they hire 5,000 workers and spend millions getting it to market only to have it flop and they have to shut down the line and lay people off and eat the financial loss. It only effects those who worked there or those who invest in GM. The reason is because the banking system hasn't taken GM stock and used it as a foundation to build a house of cards on which the build a huge industry of financial products. They put the stock in funds, but the don't overextend it and use it for 20 times its worth.

The same goes for these homes. The time was right. The people had access to cheap, easy credit and they saw the market rising and they took a stab at it. Some made money and many, clearly failed. The difference is that those mortgages were sold by the bank to other banks who then sold them again and that person split them up an used them as the asset base for 20 different investment funds, hedges and products. So when Joe Bob and his wife Jill fail with their flip instead of it just hurting them and potentially the bank that loaned them the money it now sets off a chain reaction that causes 100 people downstream to be hurt.

So the people should be blamed to some degree, but the primary culprit here is the banking system, wall street and our leaders who allowed this system to be put into place where so much can be based on one thing.