House Flippers Inflated the Housing Bubble

[Douger]

[ame=http://www.youtube.com/watch?v=w-YtqVIKTTE&feature=related]Barney Frank, 2005: What Housing Bubble? - YouTube[/ame]

 

[iamwhatiseem]

Do you really think banks have no culpability in the real estate crash? ...

The topic is whether housing bubble was caused by real estate traders. I said that the bubble was caused by the federal government forcing banks to make bad mortgages. Everyone agrees the banks did wrong from a business standpoint, especially the banks that lost big money on all the stupid loans that they never wanted to make in the first place.

It sounds like you're trying (and not quite succeeding) to say you think what the banks did was morally wrong. Some might say the question belongs on a religion forum but banks are run by people and people are morally good, so morality and banking can't be separated. We ask if banks should obey a law even when they think obedience would cause suffering they feel is morally wrong. Scripture applies:

"For rulers are not a terror to good works, but to the evil. Wilt thou then not be afraid of the power? do that which is good, and thou shalt have praise of the same."

Morality is down on the list somewhere behind criminality, ethically repugnant and fraudulent. People lost homes, self esteem, life savings and a very few enjoyed both a bail out and a golden parachute.

Whoopie for the fucking banks! Poor duped, benevolent banker forced by a Socialist state to run his business into the ground.

The blame, dear Brutus, is in our stars. In our bankers who were out for themselves not because of their utter lack of morality, but because of their criminal behavior at the ruin of so many private fortunes.

So you CHOOSE to ignore everything but what you WANT to be true.
Then you are a ...

 

[iamwhatiseem]

...The blame, dear Brutus, is in our stars. In our bankers who were out for themselves not because of their utter lack of morality...

What we're saying here is that poor minorities are always good victims, that governments are always good when they control markets, and bankers are always bad. This means--

--that before the '90's bankers were wrong to not loan money to poor minorities.
--government was good to force banks to make the loans to poor minorities
--People who could never repay were good to take out the loans.
--Governments are good to make banks foreclose on bad loans.
--Now that the borrowers can't pay back the loans just as the bankers warned, the bankers are evil for foreclosing as required by law.​

That's sick.

The sad thing is Ex_pat...there are millions of people walking around everyday who believe this very thing.

 

[expat_panama]

...Now that the borrowers can't pay back the loans just as the bankers warned, the bankers are evil for foreclosing as required by law. That's sick.

The sad thing is Ex_pat...there are millions of people walking around everyday who believe this very thing.

True, and while millions seems like a lot there're billions of people in the world. Like, what harm could possibly be done by one moron in a thousand?

 

[The Rabbi]

Do you really think banks have no culpability in the real estate crash? ...

The topic is whether housing bubble was caused by real estate traders. I said that the bubble was caused by the federal government forcing banks to make bad mortgages. Everyone agrees the banks did wrong from a business standpoint, especially the banks that lost big money on all the stupid loans that they never wanted to make in the first place.

It sounds like you're trying (and not quite succeeding) to say you think what the banks did was morally wrong. Some might say the question belongs on a religion forum but banks are run by people and people are morally good, so morality and banking can't be separated. We ask if banks should obey a law even when they think obedience would cause suffering they feel is morally wrong. Scripture applies:

"For rulers are not a terror to good works, but to the evil. Wilt thou then not be afraid of the power? do that which is good, and thou shalt have praise of the same."

Morality is down on the list somewhere behind criminality, ethically repugnant and fraudulent. People lost homes, self esteem, life savings and a very few enjoyed both a bail out and a golden parachute.

Whoopie for the fucking banks! Poor duped, benevolent banker forced by a Socialist state to run his business into the ground.

The blame, dear Brutus, is in our stars. In our bankers who were out for themselves not because of their utter lack of morality, but because of their criminal behavior at the ruin of so many private fortunes.

I think there's a toilet that needs your attention somewhere.
All businessmen are "out for themselves." All bureaucrats are out for themselves too. If you failed to note a dangerous commode it would be your job.
There was no criminal behavior (except as I noted in a post above). There was rational responding to market forces that suggested real estate was a perfect investment. In retrospect that was wrong.

 

[editec]

Cheap money, and a stupid LACK of sensible lending regulations caused the real estate meltdown,

RE specualtors merely played by the rules of the moment.

They FLIPPED houses, remember? Meaning they bought them and then SOLD them to people who presumably wanted to LIVE in them.

All true, but the net effect of so much flipping was that we built too many homes, period.

That makes like ZERO sense. Flippers are by definition working with EXISTING homes.

All of a sudden there wasn't anyone to buy because there were too many homes. The only people buying were those trying to flip them. Once it was realized that there was a glut of homes on the market, it all came crashing down.

Lad you need to read a book. You have been wildly misinformed about this event

The real estate crises really kicked into overdrive when so many of those VARIABLE rate mortgages kicked into higher gear.


There still isn't a GLUT of houses...mostly there's a lack of buyers for the existing homes.

Flippers were a SYMPTOM of the real estate madness, not the cause of it.

 

[iamwhatiseem]

Special just for Nosmo

I challenge you to watch this video and rebut what you see.
Go ahead....if you listen, you just might learn something.

[ame=http://www.youtube.com/watch?v=RWsx1X8PV_A]Milton Friedman - Greed - YouTube[/ame]

 

[EdwardBaiamonte]

Flippers were a SYMPTOM of the real estate madness, not the cause of it.

Madness hardly describes it, liberalism does however. Virtually the entire Federal government was organized by liberals to subvert the Republican free market so that people could buy homes that the free market would not allow them to buy!

If you want to understand the blow by blow events please read "Reckless Endangerment"

 

[EdwardBaiamonte]

Special just for Nosmo

I challenge you to watch this video and rebut what you see.
Go ahead....if you listen, you just might learn something.

Milton Friedman - Greed - YouTube

Sadly, rebutting involves thinking. Liberals don't go there. Their hearts merely bleed for the poor for whom they always want more and more programs; thinking does not move them at all.