Housing History Repeating Itself?

Discussion in 'Politics' started by kwc57, Apr 3, 2013.

  1. Desperado
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    Desperado Gold Member

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    Right back where we started from.
    You are supposed to learn from your mistakes.
     
  2. Ravi
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    Ravi Diamond Member

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    It wasn't risky lending, it was the credit default swaps that caused the crash.
     
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  3. DiamondDave
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    DiamondDave Army Vet

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    But but but.. Obama is good

    But but but.. It is BOOOOOOSSSSHHHHH's fault

    But but but... connnnnnnnnsssssss are bad


    :rolleyes:
     
  4. DiamondDave
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    bullprunes
     
  5. waltky
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    waltky Wise ol' monkey Supporting Member

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    Could Trump’s Tax Plan Upend the Housing Market?...
    [​IMG]
    How Trump’s Tax Plan Could Upend the Housing Market
    Oct 02, 2017 - Home ownership has long been a key component of the American dream, helped along by the fact that it offers some hefty income tax benefits. But the Trump administration and Republicans’ new tax plan will likely result in lower home ownership levels, with more people opting to rent rather than purchase a home.
     
  6. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    How does a credit default swap do that?
    Walk thru the steps for me.
     
  7. Kosh
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    Kosh Gold Member Supporting Member

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    Well banks will still make risky loans as long as they know the government will bail them out.

    The far left bailed out the banks and wall street and not the people that were affected.
     
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  8. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    The government didn't bailout banks for their risky loans.
    The banks lost trillions.
     
  9. TheDude
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    TheDude Gold Member

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    Any housing crash will be the DIRECT result of ongoing ridiculously low interest rates, plain and simple. In fact, they didn't even raise the rates until Obama was out of office. Those 500K homes at 3% are really 230K homes at a historically normal 7.5% rate. The low interest rates were a band aid on the housing industry, and inflated the true values of homes. In other terms, the Obama admin. fucked up. The rates should have seen a gradual increase.
     
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  10. NightFox
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    NightFox Wildling

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    Caused no, exacerbated yes.

    Here's a hint: they're used to insure against loan default and they only pay off if the insured debt defaults or significant credit event on the part of the debtor occurs, thus if Banker Joe only makes loans that are at a low risk of default then he doesn't need to pay CDS premiums to insure them against default, on the other hand if Banker Joe makes risky, too stupid to succeed loans he probably wants to buy insurance against default (so he can move the risk off his books and free up reserves to make more stupid ass risky loans) and that's where CDS comes into play and then of course you have secondary markets for CDS contracts which is where opaque CDS risk chains come into the picture (A buys a CDS contract from B who then sells it to C who then sells it to D, if D can't pay off then everybody up the chain takes it in the rear) .

    So, CDS weren't the root cause of "the crash" (it was risky lending and even riskier derivatives bets) but opaque CDS chains and piss poor risk management up and down the food chain did exacerbate it... just ask the stupid CDS loving dickweeds at AIG.
     
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