Giuliani is a fucking cunt!!!

[smackaholic]

There is one part of this equation I don't get.

Evil brokers arranged these loans, but, if I am not mistaken, they didn't just pull their money out of their ass. They found somebody, somewhere to take on the debt. These loaners made these dumbass loans because they knew they could flip them. Flipping them requires some other chump to take them on.

Who was this chump and why would he do so?

My guess is, this chump was uncle sugar, though vehicles like freddie mac and fannie mae.

Also to blame is the fed who decided it was a swell idea to start loaning out money at a rate barely high enough to cover inflation. This free interest loan shit helped run prices up to a point they had absolutely no business at.

Seems to me that econ 101 teaches you that if you loan out money essentially for free, you are gonna be broke pretty soon as their is always a few bsmacks in the bunch that will decide that paying it back isn't in their best interest.

Can somebody 'splain to me where I got it wrong here?

What would happen if the gubmint decided tomorrow that market forces and market forces alone would decide how much one dude can get for loaning money to another dude. And part of this equation would be the knowledge that if the loaner got bsmacked, it would suck for him or whoever insured the loan through pmi.

Seems like really simple shit, actually. Seems like the gubmint's involvement, other than in setting basic rules, is only gonna lead to trouble as the gubmint, as reggie would say, is gifted in the art of fukking up everything they touch.

They did a great job in keeping their hands on Madoff, didn't they? Shut the fuck up!

Well he's jewish. Ofcourse they laid off him.

[KC Scott]

There is one part of this equation I don't get.

Evil brokers arranged these loans, but, if I am not mistaken, they didn't just pull their money out of their ass. They found somebody, somewhere to take on the debt. These loaners made these dumbass loans because they knew they could flip them. Flipping them requires some other chump to take them on.

Who was this chump and why would he do so?

They chopped up the loans into smaller tradable products called "Derivitives" that were "sold" as a stable, high return investment - the idiots that bought these were everything from teachers Trust Funds to the State of California. Going back to my earlier post of Credit default swaps - this was the non-exisitent insurance the investors thought they wer getting

My guess is, this chump was uncle sugar, though vehicles like freddie mac and fannie mae.

Sort of..... http://www.mtgprofessor.com/A%20-%20Sec ... die_do.htm

Also to blame is the fed who decided it was a swell idea to start loaning out money at a rate barely high enough to cover inflation. This free interest loan shit helped run prices up to a point they had absolutely no business at.

Yep

What would happen if the gubmint decided tomorrow that market forces and market forces alone would decide how much one dude can get for loaning money to another dude. And part of this equation would be the knowledge that if the loaner got bsmacked, it would suck for him or whoever insured the loan through pmi.

They have Usary laws that cap just how much interest you can charge for one thing, and the other is business would grind to a standstill.
Money flow is the key to prosperity - but there has to be a balance between saving it and spending it

[smackaholic]

You are right.

There does need to be a balance.

It called the fukking MARKET. Not enough money being loaned? The price of loaning goes up. Folks with money to loan take advantage and loan it. Too much? The price goes down.

It's really not that difficult a concept.

Beats the hell out of some appointed fukk somewhere pulling a figure out of his ass.