The Wall Street crisis and the failure of American capitalism

[Collapse]

how would home loans and the flow of cash to the consumer continued? I'm not saying I agree with the bailout, but in your opinion what would of happened if Fannie Mae and Freddie Mac and the rest of them went under?

Im gonna assume you meant continue.

Banks wont even loan their money unless you have good credit now. Since the Government is deciding on bailing them out theres is a lot of credit out there that no one is going to use or might use and then later on worry about higher interest rates in the years to come causing the same problems again.

My opinion is that they would of gone bankrupt, gotten us a serious recession maybe a small depression with tons of job losses and then other banks would rise up. The economy would of been back in about 6months to a year. Since that didnt happen we are headed towards a serious depression that will last a looooooooong time with prices skyrocketing.

You cant save Free Markets with government intervention, you save Free Markets with Free Markets.

 

[GTS]

WHAT DO OU DO FOR A LIVING, COLLAPSE???...JSUT A LIL BI-CURIOUS, YOU SEEM TO HAVE SOME GOOD INFO ON THE MATTER

Your a sick fagggggggggggggg

 

[Collapse]

WHAT DO OU DO FOR A LIVING, COLLAPSE???...JSUT A LIL BI-CURIOUS, YOU SEEM TO HAVE SOME GOOD INFO ON THE MATTER

Nothing. I just watch Bloomberg everyday and listen to what people say and i form my opinion.

 

[WHITE DEVIL]

Large corporations are and have always been the biggest welfare mommas in America

 

[Mr. Nice Guy]

Banks wont even loan their money unless you have good credit now.

Real estate values have been extremely inflated mostly because of easy access to credit, so anything that changes that is a good thing for everyone.


In the longer term that can be a catalyst for rapid inflation amongst other things.

 

[Collapse]

Real estate values have been extremely inflated mostly because of easy access to credit, so anything that changes that is a good thing for everyone.


In the longer term that can be a catalyst for rapid inflation amongst other things.

What is your definition of inflation?

 

[kayvee]

Banks wont even loan their money unless you have good credit now.

LMAO thats how it should have stayed from day one.

Real estate values have been extremely inflated mostly because of easy access to credit,

ALT A loans (LMAO at this damn loan), 5 year ARMs sold to B and C paper customers, etc.

houses went from 140k to 500k+ in less than what, 5-10 years?

it was easier to buy a house than it was to buy a car or even get a credit card.

~k.

 

[Miro]

Large corporations are and have always been the biggest welfare mommas in America

corporations are people you know!

 

[Mr. Nice Guy]

What is your definition of inflation?

A decline in the "real value" of money followed by an increase in general prices.



The inflation of real estate values was a catalyst for inflation in the general currency because, as Kayvee pointed out, houses were doubling or more in value in some cases because of the fact that it was so easy to obtain a loan for a house.

The easier it is to get credit, the less value the credit has, and the more it increases demand.

If it was mandatory that a buyer put down 50% on a house, real estate prices would be much lower than they are today. On the other hand, if lenders routinely gave bowers 10% of the loan value back, real estate prices would be higher still than they are today. That just goes to show how lending practices can influence the price of real estate and really anything else.

In our situation, the rapid appreciation of real estate due to the availability of credit was subsequently lowering the real value of money.