(April 1, 2011 at 12:58 pm)reverendjeremiah Wrote: If they dont regulate the banks, this will happen over and over again.
If your Government didn't think it was a fucking brilliant idea for everyone to buy a house and decide to throw a ton of taxpayer resources at it (which it's still paying for now) by giving subsidies, tax breaks, cutting interest rates and fixing and guaranteeing mortgages for people who couldn't afford to pay it, all of which just raises the demand for houses, builds up an entire supply industry, sends speculation wild, causes prices to surge and creates trillions of dollars in fake wealth at the same time - Poor suckers belied the government, Keynesian economists and industries when they said there was no problem, something that Austrian Economists saw a mile back... there wouldn't have been "this".
If you want a loans from a bank and you don't have a hope of paying it you back nobody would give you the damn loan - You loose money buying toxic loans, banks don't intend to lose money - But when a government decides that it's going to back these home loans the risks involved change dramatically, a broker no longer has to worry about finding someone to buy the loans he's given based on their risks involved, he just goes to one of those public assets Fanny and Freddy and they buy the loans.
Now they're using the exact same principles in the stimulus spending, and you're concerned about the banks? When they have to play with their own capital you don't get this shit, let them sweet talk some government elitist fuckers into giving them a free tap into your money and you're going to see how fucking dangerous Lord Keynes' "economic theory" (elitist trick) can be.
.
