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Participanti dont understand how securitization of loans was a socialist experiment.
It wasn’t. Like you said, securitization of mortgage debt and the fraudulent rating thereof was unregulated capitalism. The socialism will come in the endgame, when unregulated capitalism produces the predictable disastrous outcome — in this case a massive wave of foreclosures. The government will either print money to deflate the value of these debts as well as their own (stealing the savings from those who have it, a “stealth” tax as it were), or by simply purchasing the bad loans and then renegotiating the terms with the borrowers to allow them to stay in their houses. There are tons of plans floating around now, but all of them will involve a transfer of wealth from those who have it to those who don’t.
A similar thing happened under FDR in the 1930s after another disastrous episode of unregulated capitalism run amok. The answer then was massive public works projects, social security, etc…
Long story short, if you don’t like socialism then make sure your capitalist system is well-regulated. Otherwise, that’s exactly what you’re going to end up with when the wheels come off the ponzi scheme and the unwashed masses demand reparations. In the 1920s it was stocks, this time it was houses.
Participanti dont understand how securitization of loans was a socialist experiment.
It wasn’t. Like you said, securitization of mortgage debt and the fraudulent rating thereof was unregulated capitalism. The socialism will come in the endgame, when unregulated capitalism produces the predictable disastrous outcome — in this case a massive wave of foreclosures. The government will either print money to deflate the value of these debts as well as their own (stealing the savings from those who have it, a “stealth” tax as it were), or by simply purchasing the bad loans and then renegotiating the terms with the borrowers to allow them to stay in their houses. There are tons of plans floating around now, but all of them will involve a transfer of wealth from those who have it to those who don’t.
A similar thing happened under FDR in the 1930s after another disastrous episode of unregulated capitalism run amok. The answer then was massive public works projects, social security, etc…
Long story short, if you don’t like socialism then make sure your capitalist system is well-regulated. Otherwise, that’s exactly what you’re going to end up with when the wheels come off the ponzi scheme and the unwashed masses demand reparations. In the 1920s it was stocks, this time it was houses.
Participanti dont understand how securitization of loans was a socialist experiment.
It wasn’t. Like you said, securitization of mortgage debt and the fraudulent rating thereof was unregulated capitalism. The socialism will come in the endgame, when unregulated capitalism produces the predictable disastrous outcome — in this case a massive wave of foreclosures. The government will either print money to deflate the value of these debts as well as their own (stealing the savings from those who have it, a “stealth” tax as it were), or by simply purchasing the bad loans and then renegotiating the terms with the borrowers to allow them to stay in their houses. There are tons of plans floating around now, but all of them will involve a transfer of wealth from those who have it to those who don’t.
A similar thing happened under FDR in the 1930s after another disastrous episode of unregulated capitalism run amok. The answer then was massive public works projects, social security, etc…
Long story short, if you don’t like socialism then make sure your capitalist system is well-regulated. Otherwise, that’s exactly what you’re going to end up with when the wheels come off the ponzi scheme and the unwashed masses demand reparations. In the 1920s it was stocks, this time it was houses.
ParticipantLender after lender has been telling her, “Nope. We want 45% down.”
Awesome, that says that they expect that it is at least possible that the property will decline $450K in value. Sounds like they may be planning on carrying this mortgage instead of securitizing it. If we can avoid the government bailouts and put an end to the securitization so that banks have to carry these loans we will see normal prices return. Otherwise it’s just gonna keep on going — until it can’t any more…
ParticipantLender after lender has been telling her, “Nope. We want 45% down.”
Awesome, that says that they expect that it is at least possible that the property will decline $450K in value. Sounds like they may be planning on carrying this mortgage instead of securitizing it. If we can avoid the government bailouts and put an end to the securitization so that banks have to carry these loans we will see normal prices return. Otherwise it’s just gonna keep on going — until it can’t any more…
ParticipantLender after lender has been telling her, “Nope. We want 45% down.”
Awesome, that says that they expect that it is at least possible that the property will decline $450K in value. Sounds like they may be planning on carrying this mortgage instead of securitizing it. If we can avoid the government bailouts and put an end to the securitization so that banks have to carry these loans we will see normal prices return. Otherwise it’s just gonna keep on going — until it can’t any more…
ParticipantLender after lender has been telling her, “Nope. We want 45% down.”
Awesome, that says that they expect that it is at least possible that the property will decline $450K in value. Sounds like they may be planning on carrying this mortgage instead of securitizing it. If we can avoid the government bailouts and put an end to the securitization so that banks have to carry these loans we will see normal prices return. Otherwise it’s just gonna keep on going — until it can’t any more…
ParticipantLender after lender has been telling her, “Nope. We want 45% down.”
Awesome, that says that they expect that it is at least possible that the property will decline $450K in value. Sounds like they may be planning on carrying this mortgage instead of securitizing it. If we can avoid the government bailouts and put an end to the securitization so that banks have to carry these loans we will see normal prices return. Otherwise it’s just gonna keep on going — until it can’t any more…
ParticipantThe Soviet Union also went bankrupt and collapsed.
Not before the supermarket shelves were empty and people were growing vegetables on their balconies to stay alive. If we’re going down that road (which I’m afraid we are), this thing is just getting started. The endgame of an ideologically-driven economic collapse is very, very ugly. You have starvation, freezing to death, things like that. Things are still quite nice here. We could go downhill on this path for another 50 years.
The sort of backwards-think displayed in your post is exactly what got us in this mess I might add.
Hey, I don’t like it either! I said in my post we should require 20% down! I am after all one of the ideologically unfaithful, renting a place, driving an old car, paying off my credit cards every month and saving my spare American pesos in the bank. I’m just calling it like I see it. I realize that people like me are not the norm and in fact are hated and despised by the society at large. Remember that outside of the public sector, our society manufactures very little. Most people with middle-class jobs outside of the government or defense contracting are involved in the shuffling of money from one place to another, the charging of fees, etc… People like me don’t put any sheckles in their pockets so they will try to minimize our influence. They want everyone borrowing, paying late fees, paying refinancing fees from here to eternity. That’s how they pay their mortgages. It’s a grand con and I am not participating. Unfortunately people like me are in the minority and our numbers are destined to diminish year by year until the inevitable collapse finally comes.
ParticipantThe Soviet Union also went bankrupt and collapsed.
Not before the supermarket shelves were empty and people were growing vegetables on their balconies to stay alive. If we’re going down that road (which I’m afraid we are), this thing is just getting started. The endgame of an ideologically-driven economic collapse is very, very ugly. You have starvation, freezing to death, things like that. Things are still quite nice here. We could go downhill on this path for another 50 years.
The sort of backwards-think displayed in your post is exactly what got us in this mess I might add.
Hey, I don’t like it either! I said in my post we should require 20% down! I am after all one of the ideologically unfaithful, renting a place, driving an old car, paying off my credit cards every month and saving my spare American pesos in the bank. I’m just calling it like I see it. I realize that people like me are not the norm and in fact are hated and despised by the society at large. Remember that outside of the public sector, our society manufactures very little. Most people with middle-class jobs outside of the government or defense contracting are involved in the shuffling of money from one place to another, the charging of fees, etc… People like me don’t put any sheckles in their pockets so they will try to minimize our influence. They want everyone borrowing, paying late fees, paying refinancing fees from here to eternity. That’s how they pay their mortgages. It’s a grand con and I am not participating. Unfortunately people like me are in the minority and our numbers are destined to diminish year by year until the inevitable collapse finally comes.
ParticipantThe Soviet Union also went bankrupt and collapsed.
Not before the supermarket shelves were empty and people were growing vegetables on their balconies to stay alive. If we’re going down that road (which I’m afraid we are), this thing is just getting started. The endgame of an ideologically-driven economic collapse is very, very ugly. You have starvation, freezing to death, things like that. Things are still quite nice here. We could go downhill on this path for another 50 years.
The sort of backwards-think displayed in your post is exactly what got us in this mess I might add.
Hey, I don’t like it either! I said in my post we should require 20% down! I am after all one of the ideologically unfaithful, renting a place, driving an old car, paying off my credit cards every month and saving my spare American pesos in the bank. I’m just calling it like I see it. I realize that people like me are not the norm and in fact are hated and despised by the society at large. Remember that outside of the public sector, our society manufactures very little. Most people with middle-class jobs outside of the government or defense contracting are involved in the shuffling of money from one place to another, the charging of fees, etc… People like me don’t put any sheckles in their pockets so they will try to minimize our influence. They want everyone borrowing, paying late fees, paying refinancing fees from here to eternity. That’s how they pay their mortgages. It’s a grand con and I am not participating. Unfortunately people like me are in the minority and our numbers are destined to diminish year by year until the inevitable collapse finally comes.
ParticipantThe Soviet Union also went bankrupt and collapsed.
Not before the supermarket shelves were empty and people were growing vegetables on their balconies to stay alive. If we’re going down that road (which I’m afraid we are), this thing is just getting started. The endgame of an ideologically-driven economic collapse is very, very ugly. You have starvation, freezing to death, things like that. Things are still quite nice here. We could go downhill on this path for another 50 years.
The sort of backwards-think displayed in your post is exactly what got us in this mess I might add.
Hey, I don’t like it either! I said in my post we should require 20% down! I am after all one of the ideologically unfaithful, renting a place, driving an old car, paying off my credit cards every month and saving my spare American pesos in the bank. I’m just calling it like I see it. I realize that people like me are not the norm and in fact are hated and despised by the society at large. Remember that outside of the public sector, our society manufactures very little. Most people with middle-class jobs outside of the government or defense contracting are involved in the shuffling of money from one place to another, the charging of fees, etc… People like me don’t put any sheckles in their pockets so they will try to minimize our influence. They want everyone borrowing, paying late fees, paying refinancing fees from here to eternity. That’s how they pay their mortgages. It’s a grand con and I am not participating. Unfortunately people like me are in the minority and our numbers are destined to diminish year by year until the inevitable collapse finally comes.
ParticipantThe Soviet Union also went bankrupt and collapsed.
Not before the supermarket shelves were empty and people were growing vegetables on their balconies to stay alive. If we’re going down that road (which I’m afraid we are), this thing is just getting started. The endgame of an ideologically-driven economic collapse is very, very ugly. You have starvation, freezing to death, things like that. Things are still quite nice here. We could go downhill on this path for another 50 years.
The sort of backwards-think displayed in your post is exactly what got us in this mess I might add.
Hey, I don’t like it either! I said in my post we should require 20% down! I am after all one of the ideologically unfaithful, renting a place, driving an old car, paying off my credit cards every month and saving my spare American pesos in the bank. I’m just calling it like I see it. I realize that people like me are not the norm and in fact are hated and despised by the society at large. Remember that outside of the public sector, our society manufactures very little. Most people with middle-class jobs outside of the government or defense contracting are involved in the shuffling of money from one place to another, the charging of fees, etc… People like me don’t put any sheckles in their pockets so they will try to minimize our influence. They want everyone borrowing, paying late fees, paying refinancing fees from here to eternity. That’s how they pay their mortgages. It’s a grand con and I am not participating. Unfortunately people like me are in the minority and our numbers are destined to diminish year by year until the inevitable collapse finally comes.
ParticipantI made over $80k when I lived in SD last year, and the middle of the road home in my hood was about $750k. Almost 10x my yearly wage! That just pisses me off.
This is happening because people can buy with less than 20% down. What happened is that, through deregulation of the banking industry and securitization of home loans, the barrier to market entry was lowered significantly, drastically increasing the number of participants. Supply held relatively constant, prices have nowhere to go but up. 20% down should be the rule of the land but it’s probably never coming back. Instead we will get this weird socialized debt system, where those willing to go most into debt are subsidized by those who save and live within their means. Like the economy of the old Soviet Union, it is an ideologically-based system — those with the most faith in the glory of the “free” market will borrow the most and overextend themselves because they’re sure everything will work out in the end. When it doesn’t, those of us who are ideologically unfaithful (i.e., save our money and live within our means) get punished with higher taxes for bailouts and deflation of our money through currency debasement . In the end of course, the market is completely rigged and anything but “free”, but those faithful to the prevailing ideology (borrow and spend as much as possible) are rewarded with big fancy custom homes and new BMWs while the rest of us live in apartments and drive 10-year-old Hondas.
Depressing, isn’t it?
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