Quote:
Originally Posted by Avatard
I'd say no, and add that apparently you fall for people pissing on your head and telling you it's raining.
The redistribution of wealth that just took place was on a grand fucking scale, son.
The fact that no one has money to buy shit reflects that.
You're buying the official press release, and I'm telling you the redistribution of wealth pulled all the money out of the economy, and it's as plain as fucking black and white.
The whole scenario really isn't much different than the old bank runs of much earlier times, but you're not even thinking on that level. You're not seeing it, and I think it's you who are in fact "that stupid".
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There was no "redistribution of wealth", wealth disappeared. Easy credit was treated as wealth and the money was spent. Overinflated values for homes was treated as wealth and the money was spent. Both no longer exist so there is less money to spend.
Where are these magical properties the banks are cherry picking and flipping at a profit? If the house can be sold for more than the remaining loan balance then the homeowners are stupid if they let it go in to foreclosure. They can sell it themselves and pay off the loan. What the banks are overwhelmingly getting instead is homes that are worth less than the remaining loan balance. That loses money for the bank. I would really like for you to explain to me how a bank is coming out ahead on a foreclosure.
Nothing that has happened has put any of the lost money back in the banks. Yes, the banks were bailed out, but pretty much all of them have paid any bailout money they received back to the government. The simple fact is that banks paid out money for people to buy property. Instead of being paid back with interest they have received the property which happens to be worth less than what the banks loaned out. You also apparently don't know what writing off a loss means.