Comments on: Let Them Starve

By: Sleep Dog

Sleep Dog — Fri, 10 Aug 2007 12:54:28 +0000

Great post, I think the good Dr. Ron Paul would agree with you on this, no government bailout for the subprime sharks!

Sleep Dog

By: Matt

Matt — Thu, 09 Aug 2007 03:40:42 +0000

You’re spot on that the banks were anticipating higher prices when they forclosed on the houses. Any idiot could see, despite the spin that plays on financial news, that the house prices were just being driven by the abundance of loans, however.
As for the former-homeowners? I experience schadenfreude as much as the next person. But, I also recognize that nobody is going to escape this firestorm without getting singed.

Google: petro-dollar

By: Greg's liberal mom in Oklahoma

Greg's liberal mom in Oklahoma — Thu, 09 Aug 2007 02:15:33 +0000

Let’s just hope the payday loan people don’t go out of business! They just want to help people.

By: Kevin

Kevin — Thu, 09 Aug 2007 01:30:10 +0000

Actually, Charles, when you say

“No. We did. The Developing countries assumed the debt of their investors, the US Govt loaned money to the Developing Countries, who then paid the Western Rich Investors”

you forget that the US Treasury acutally made about $50 million on the loan guarentees. It was a good move by Clinton, in contrast, to, say…the S&L BAILOUT by Reagan…

“Having to comply with the recently signed NAFTA obligations, Mexico did not resort to the traditional Latin American policies in times of crisis of trade protection and capital controls (which might have prolonged the crisis), but introduced strict controls on monetary and fiscal policy, open trade, and devalued currency. The boom in exports that followed eased the recession which turned out to be a 10-month, short-lived recession. By 1996, the economy was already growing (and peaked at 7% growth in 1999). In 1997, Mexico repaid, ahead of schedule, all US Treasury loans.”

now the S&L Scandal was a real scandal much closer to what is happening now then the run on emerging market debt in the 1990s.

By: RAIN

RAIN — Wed, 08 Aug 2007 16:45:13 +0000

Elizabeth Taylor’s words in the movie “Suddenly Last Summer”

“Avarice and greed.”

By: Doobie

Doobie — Wed, 08 Aug 2007 08:42:43 +0000

If given to the poor, such a proposed government subsidy would be decried by many on the right as “socialism.”

Yet they have no problem with businesses receiving such a subsidy in the form of a bailout, all the while extolling the virtues of the “free market.”

Go figure.

By: C.S.Strowbridge

C.S.Strowbridge — Wed, 08 Aug 2007 07:03:01 +0000

“While I appreciate your argument Greg, I want to point out that it’s not just greedy tools that will be losing their jobs in the sub-prime mess.”

“The collapse also harms those who have the means to buy a home but now have to wait until…”

This is why you buy them out. If you are going to lose money cause they screwed up, you should at least try and find a way to profit from it. And the banking industry can make a lot of profit if run well.

By: Steve

Steve — Tue, 07 Aug 2007 20:15:26 +0000

The collapse also harms those who have the means to buy a home but now have to wait until all the various mortgage holders finish their squabble about who really owns the property desired. This causes the second (third?) part of the slow down as you soon won’t be able to buy a house even with cash up front because no one can make a decision.

By: Charles

Charles — Tue, 07 Aug 2007 19:00:22 +0000

Transferring Risk and Debt from the Private to the Public.

In many ways, Privatizing Profits while Publicizing Debt is an old story. During the 1980′s and 1990′s, rich Western investors loaned money to rich Developing Country people in Mexico, Argentina, Malaysia, and Indonesia. These folks built large amounts of buildings/office space. For at time, both the Loaners and Investors made a large amount of Private Profit. However, when the bubble burst and the investments went belly up, did the Rich Western Investors pay for their indiscretion?

No. We did. The Developing countries assumed the debt of their investors, the US Govt loaned money to the Developing Countries, who then paid the Western Rich Investors.

And now, the Rich Western Investors are trying the same thing at home. When it works, they make money, and when it fails, they hold a gun at the American Economy’s head and say “Pay up or it dies.” Thus, the public is left holding the bag or it suffers.

Charles

By: mr.ed

mr.ed — Tue, 07 Aug 2007 15:05:48 +0000

Your premise not necessarily true. Banks and other financial institution just want your money, as trouble-free and steady as possible. They don’t want your house, especially after you’ve had to give up maintenance and let it run down.