The Making of Another Great Depression

Housing prices dropped because of foreclosures not as a result of them. To suggest otherwise shows either an agenda or a profound ignorance on the issue.

 

If everyone who is choosing to abandon their houses did that we would be in better shape. Unfortunately, many are making this decision because it benefits them personally. It's not illegal to do this as far as I know.

 

Maybe...

It depends...

Just because one walks away from the house it does not necessarily mean that they are free of the debt.

It will be interesting to hear the stories later on when people who did default and are back on their feet are pursued by banks trying to get the money owned to them.

No doubt some will perceive that as "unfair".

 

Absolutely; and even consider themselves "victims".

And even worse, the govt will probably agree with them! That is unless they happen to be middle-class and/or conservative.

 

The difference between the parties now is that they both still want to spend our economy into greater debt, just on different things.

 

The number of bank failures does not indicate the severity of an economic downturn. More banks today have really failed than are accounted, because some of the failed banks have been bailed. During the Great Depression, the inflation engine was not as severe as it is today. At that time, we were suffering deflation and subsequent inflation. Instead, for this depression, we will suffer massive inflation (possibly hyperinflation).

The fact that bank runs can actually occur indicates the major flaw in fractional reserve banking and the moral hazzard that it creates. The only real difference between Bernie Madoff and a fractional reserve bank is that the latter is legal and the former was not. When a fractional reserve bank treats account holdings (liabilities) as investment assets, it is just the economy at work; when a stock broker treats account holdings (liabilities) as investment assets, it is fraud (and rightfully so). When Madoff invests your money and loses it, he goes to jail. When a bank invests your money and loses it, it gets bailed out, again at your expense.

 

Aren't mortgage loans secured by th property? That's my understanding so if you default on mortgage payments the property reverts to the lender as paent.

 

And where the repo is sold for less than the loan amount the lender is legally allowed to look to the borrower for the difference - unless there has been some concession otherwise made either in the mortgage documents or by arrangement at the sale - often referred to as a short sale.

 

True but there are two sides to a contract.

If the contractor had deceived the contractee. There remains no moral obligation.


HankD

 

as I showed in another post the Great Depression reached bottom in terms of GDP when Roosevelt took office. Why did they call camps for homeless people "Hoovervilles?"

 

You respond to stats with anedotes?

I have a hoover vacuum...does that mean FDR did a good job?

Listen...you're losing the fact war here. Why not surrender to the truth?

 

The web site I included shows a curve of GNP vs year for the Great Depression. That's not an anecdote. Did you even bother to look at it? I doubt it.

BTW, I'm happy for you and your vacuum cleaner.

 

Latent Troll
The Latent Troll is similar to the Blatant Troll except he doesn’t know he’s being a troll. His inflammatory remarks are posted with a higher cause in mind. He sees himself as a crusader and his ranting is the means to justify the end. Those who feel his wrath are just pawns in a bigger game. Maybe he's adamant that the moon landing didn't really happen or perhaps he insists that the music of Wilson Phillips was original and cutting edge and "we just don't get it". Unfortunately, no one ever stands by the latent troll or his doctrine. He figures that we're either out to get him, but more than likely, we're just not ready for his genius.

Latent Troll Feeder
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Blatant Troll Feeder
The Blatant Troll Feeder isn’t bothered by the troll and enjoys the emotionally charged pursuant discussion that is sure to unfold. To keep the action lively, the blatant troll feeder might post something agreeing with the troll, disagreeing with the latent troll feeder, or anything to keep the thread count growing. Maybe a few days pass and no one posts - don't worry, the Blatant Troll Feeder is sure to bump that post up to the top.

Recovering Latent Troll Feeder
A Recovering Latent Troll Feeder has made the first big step to recovery – admitting he has a problem. His admittance usually comes in the form of "I’m done with this thread", but sadly, he will likely relapse with posts such as "I can’t let that go - I have to defend myself" as the troll knows just the right buttons to press. It's a difficult plight for the Recovering Latent Troll Feeder - deep down inside, he knows that arguing with the troll is futile and stupid, but he just can't resist. The keyboard calls to him more soothingly than the Siren's song - he must get the best of this troll and he has to get in the last word. Fight the good fight, Recovering Latent Troll Feeder ... fight the good fight.

Source

 

Trolls are people who post large numbers of posts that are completely irrelevant to the topic at hand. That's a good definition of YOU. Be gone. Back on iognore.

 

Didn't Bush spemd about $800B to stimulate the economy? Should he have done that? Was the money wasted? Should we have done nothing? What do you base your answer on? An in-depth understanding of finance and economics? Somehow I doubt it.

Was the Bush stimulus money spent more or less wisely than Obama's stimulus money? Why?

 

Not sure what you are getting at with this.

Are you referring to interest rate changes?

 

His administration did, at his direction, so yes...at least that much.

We should have done what America does...let the free market work things out. If criminal behavior occurs, punish it...but we all know that the government doesn't do much of anything as well as the private citizenry.

Yes.

Historical precedent.

Both were monumentally stupid, if not fraudulent, in their approach, methodology, and in their communication to the people they supposedly work for. Probably the only difference is that Obama might have more folks spending his money who have a blatantly anti-American agenda. (though Bush had some morons, buffoons, and scary leftists helping him)

I'd put my knowledge of economics up against your knowledge of freedom. I'd win.



What will be funny to me is that somehow, you'll still accuse me of defending your bosom buddy, George W. Bush.


CALLING ALL BB MEMBERS: If you know what kind of car alatide drives, I'll pay you $20 to put a "Bush" bumper sticker in his back window. Oh, the laughs we'd have...