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06-05-2011, 12:09 PM | #1 | |
AMA Supersport
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Home buyers happily signed on the dotted line and obligated themselves to pay back loans they couldn't pay back. The banks certainly bear some responsibility for what happened but the individuals who by the millions took out loans and "stuck them in their greedy pockets" with little consideration about paying them back bear some responsibility as well. This couldn't have happened without a lot of greed on both sides. |
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06-05-2011, 12:56 PM | #2 | |
Let's do another U-turn
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06-05-2011, 01:05 PM | #3 | |
Crotch Rocket Curmudgeon
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Oh, wait...that's because that's not exactly how it went, right?
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06-05-2011, 02:09 PM | #4 | |
Elitist
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p.s. I like the 'OWNED' Last edited by Homeslice; 06-05-2011 at 02:30 PM.. |
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06-05-2011, 02:18 PM | #5 |
Moto GP Star
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Probably didnt help that the banks were telling people wha tthey wanted to hear and jumped into these loans without doing their homework.
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06-05-2011, 03:31 PM | #6 | |
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You also think banks want to own all the property they got in this "land grab" as you call it? The banks only own those properties because the buyers stopped making payments and their loans are for more than the properties are now worth. Each property that goes in to foreclosure has a gap between what the property is worth and the value of the existing balance on the mortgage. That difference isn't speculative, it is a real loss to the banks since those banks actually paid out real cash money for the properties that were purchased. They would be much better off financially if homeowners just kept paying their loans. Instead they now have inventories of homes that are worth a fraction of the real money the banks loaned out for them. Every piece of land they got in this "land grab" has a financial loss attached to it. |
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06-05-2011, 03:55 PM | #7 | |
Crotch Rocket Curmudgeon
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06-05-2011, 04:08 PM | #8 |
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So what? Say a month ago you gave me a thousand dollars and in return I told you I would give you $1,100. Now I can't afford to give you $1,100 so I'm giving you a mountain bike worth $500 and telling you to go screw over the rest of it. Who got the better deal? But hey, you can write it off!
ETA: It is still real money that banks lost and they aren't getting back. The way those losses are accounted for doesn't change that. Last edited by goof2; 06-05-2011 at 04:09 PM.. Reason: clarity |
06-06-2011, 12:51 AM | #9 | |
WSB Champion
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You wouldn't borrow 100k to your friend if you knew he couldn't pay...why would banks UNLESS they have had nothing to loose. The largest of greed came from the top.
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Train Hard Ron Paul - 2012 Mark of Excellence GM Last edited by 101lifts2; 06-06-2011 at 12:58 AM.. |
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06-06-2011, 01:17 AM | #10 | ||
Let's do another U-turn
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Why don't you fill in the blank on goof's step #2. You know, the one with all the question marks. Do you want to know WHY the wealthy are wealthy and why the poor are poor? Habit, thought and action. The poor make poor choices. They buy more than they can truly afford. They don't pay attention to their money. They rely on credit because they want what the wealthy have, regardless of what they can truly afford. They live beyond their means. Sure, sometimes circumstances come around like a lost job, or huge medical bills, but in the end, the poor have simply made poor choices. If people had not been living beyond they're means, this financial crisis would not be anywhere near what it is today. People fell into the trap of "ooh, look, I can buy a brand new house with granite countertops, a huge backyard with a pool and a deck and a waterfall, etc., etc., etc." Nobody stopped to think about HOW they were paying for that. Then, after buying that house, they NEEDED patio furniture and a new bed and an entire new living room, not to mention the boat, motorcycle and $45k SUV. Why? Because they want to live like the wealthy people live and they're willing to borrow as much as anyone will lend to them, without thoughts of the consequences. I'm not saying that all wealthy people got wealthy because they were completely honest, but many of them became wealthy because they worked hard, saved, and followed basic financial principals. They didn't become wealthy because they own banks and set up some elaborate scheme to foreclose on houses. Quote:
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