Valerie
Platinum Member
- Sep 17, 2008
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Individuals actors operating within legal bounds do not bear the burden of responsibility for market conditions having been enabled by Government deregulation. The functions of the market itself are not personal and your attempt to place blame on certain individuals who work within the financial system is ridiculous...The conditions for real estate market failure were ripe not because of individual workers within various disconnected segments of the market, but because of the legal bounds under which they were all operating on account of failed Government leadership in proper market regulation...Smart investors on Wall Street saw the writing on the wall and made a profit for their clients by betting against the real estate market. "Shorting the market" is nothing personal, it is merely capitalizing on what the market provides.
We should also remember that no one forced individual home buyers to sign mortgage loan agreements they could not honor...IOW people who did not fail to pay their mortgages did not lose their homes, it's called personal responsibility...Banks had been practically giving away money for a decade at historically low interest rates, and Americans pounced on the real estate market which artificially inflated market prices.
Many (too many) did not bother to understand the market they were buying into, they only knew the vast amounts of money the bank would lend them suddenly meant they could afford a very expensive home at a very low interest rate...But then too many people failed to honor their mortgage agreements WHY? They either lost their job and could no longer make the payments, failed to understand that their interest rate agreement was adjustable, or they squatted and legally robbed their mortgage lender...None of which is even remotely the fault of a Wall Street investor who had the insight to bet against REITs in that environment...
HOrseshit.
You act like the banks weren't the ones pushing for this deregulation to allow them to make riskier loans. That they weren't lobbying the GSE's to back more of their risk. that the banks weren't intentionally pushing people to make loans that they knew damned well they couldn't pay off.
Hells bells, I make 20% less than what I made 5 years ago and my property has lost about 30% of its value. Now, you'd think the banks would stop pestering me with offers to refinance and such. NOPE. You think they'd stop sending me unsolicited credit card offers. NOPE.
The Banks are acting like 2008 never even happened, because they know if it happens again, they'll get bailouts again.
And not a one of them will go to jail for it.
Horseshit yourself. I am not acting like any such thing...Whatever banks pushed for was made possible not by virtue of the stock market. The reason banks failed is not because investors sold off, rather investors sold off because banks failed to produce a thriving business model in a deregulated environment... Think of the market trader as the messenger, not the actual message or cause of failure.