Trump's Stock Market

Discussion in 'Politics' started by Green Wizard, Dec 24, 2018.

  1. Another thing....
    Banks were told by G. W. Bush who was pandering to progressives to relax their lending policies to allow people who did not qualify to be able to get loans. Freddie and Fannie Mac both government sponsored enterprises (GSE) bought up these toxic loans and bundled them up and sold them as AAA securities as to try and hide their toxicity.
    The influx of millions of new home owners who had no business owning homes drove the markets through the roof, which was the intended goal. Government wanted property prices to continue to rise so people who got their homes on a adjustable rate mortgage (ARM) would continue to see equity gains so they could refiniance and continue the debt based economy.
    But as the bubble was being inflated by government meddling and the upward pressure on house prices continued to rise it attracted millions more who were speculators.... how many flip my house tv series came to be during this time? Further driving prices beyond the market value.
    So as the prices stabilized and begin to drop and at the same time the ARM loans starts to adjust (upward) millions start to find themselves underwater and not able to afford their sky rocketing payments. So you see exactly how bubbles are created. The government set artificially low interest rates, set artificially low credit requirements, and created enterprises that bundled and sold them to companies holding your 401k.
    It was government meddling and more accurately progressive policies that led to the housing bubble. The ironic thing to me was the whole program was intended to help more poor people be able to afford homes and it unintentionally drove prices higher than ever. And at the end government did everything in its power to try and keep the housing bubble propped up for as long as possible, and with the backing of every ignorant progressive there is.
     
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  2. Actually, that was Clinton. Who were these progressives you speak of?

    I was there dude. I actually bought my first house super cheap after the shit hit the fan. It's now worth 7 times what I paid for it. Yeah, I'm bragging. I like that jab at progressive though. Like they are in anyway shape or form in control of the banks and corporate oligarchs. That's a good one.
     
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  4. The biggest thing though is after the banks screwed up after being encouraged by government policy they were bailed out. TARP alone was about $100 Billion and if you add in all the other things the government did, like special lending and asset swaps some estimates are in the trillions (see here). The worst thing is Main Street was also encouraged by bad government policy but where was our bailout? The banks got theirs. That is why I encourage everyone to take advantage of the banks now that times are good and they are giving away free money. Go and get your bailout! Just don't put that money in the casino stock market, get yourself some more weed.
     
  5. #66 garrison68, Mar 31, 2019
    Last edited: Mar 31, 2019
    The banks were forced by new laws (not "encouraged"), to give home loans to unqualified borrowers - which is something that bankers had never done before that - which resulted in a rash of foreclosures and helped cause a major real estate and financial crisis over a decade ago.

    All of the bank bailout loans that were given were repaid with substantial interest that profited the government, which was responsible for the problem to begin with.

    This is only the basics, the rest of it is beyond the scope of a thread post.
     
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  6. Woah dude!
    Long time no see..
    ❤️❤️❤️
     
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  7. There were numerous causes for the 2008 crash, so I don't blame bad state regulation entirely, but it was definitely a very significant contributor. All these policies designed around "every American should be able to own a home", regardless of their ability to afford it are of course going to result in high default rates.

    I roll my eyes when people insist the crash was the result of "deregulation" when the financial sector was and is one of the most heavily regulated industries in the world.
     
  8. Still around, lol. Things have been actually OK on the political front: We're not in a war or even on the verge of one, terrorist attacks from abroad seem to have been quelled, the economy is good, and more. Trump has done far better than I expected, despite the opposition he faces. And, this is coming from somebody that didn't even vote for him.
     
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  9. Yeah could be worse, especially considering all of the doomsday predictions we've been hearing.
    Something needs to be done with health insurance though, and neither party will do shit since it's election season.
    God forbid either side give the other a win.
    Good seeing you still around man..
     
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  10. What slumping stock market?
     

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