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LobowolfXXX Inner circle La Famiglia 1196 Posts 
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On 2010-11-25 01:41, landmark wrote: If the riskiest, as a group, wouldn't be profitable, they wouldn't get loans. The segment of society that can't get a loan because the rates are too high would also not get a loan if rates were not permitted to be as high as they are. Absolutely nobody who is paying close to 30% today would be given a loan at 15% if that were the maximum allowable rate. I don't know how good the Trump analogy is, but in one sense, it fits - If the numbers are such that it's not profitable to "gamble" with a certain person (e.g. a card counter at blackjack), then the casino can and will not deal with him; they'll make their money off of the people who ARE profitable, and the counters will be left with nowhere to play. If risk assessment were perfect, you'd know exactly what everyone's "breakeven" interest rate would be; e.g. at 15%, borrower X is as likely to make money for the lender as to cost him money. So maybe they charge him 20%, because they want a safety margin and a profit. But if the government tells them that they can't charge him more than 12%, then borrower X just doesn't get a loan, period.
"Torture doesn't work" lol
Guess they forgot to tell Bill Buckley. "...as we reason and love, we are able to hope. And hope enables us to resist those things that would enslave us." |
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gdw Inner circle 4884 Posts
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On 2010-11-24 23:32, LobowolfXXX wrote: And this was/is exactly the problem now. Big nanny government didn't want anyone to have to be told they couldn't have a loan. So they backed them, completely eliminating any and all forces in the market that would have prevented the current financial situation we have now. Great job helping everyone to be home owners there government. Now that everyone owns a home, no wait, banks own everyone's homes for them. Quote:
On 2010-11-24 23:12, landmark wrote: Yeah, it's working great, oh wait, no it's not, because that's not even close to what we have. See what I wrote above.
"You may say I'm a dreamer, but I'm not the only one."
I won't forget you Robert. |
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landmark Inner circle within a triangle 5194 Posts
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And the maximum rate is what?
Click here to get Gerald Deutsch's Perverse Magic: The First Sixteen Years
All proceeds to Open Heart Magic charity. |
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LobowolfXXX Inner circle La Famiglia 1196 Posts
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Landmark, what do you think the maximum allowable rate should be?
"Torture doesn't work" lol
Guess they forgot to tell Bill Buckley. "...as we reason and love, we are able to hope. And hope enables us to resist those things that would enslave us." |
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landmark Inner circle within a triangle 5194 Posts
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"That's why most major credit card companies are incorporated in Delaware or North Dakota. These states have no usury laws and therefore impose no limits on how much they can charge customers across the country."
http://credit-cards.interest.com/qanda/l......_qa.html
Click here to get Gerald Deutsch's Perverse Magic: The First Sixteen Years
All proceeds to Open Heart Magic charity. |
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balducci Loyal user Canada 227 Posts
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On 2010-11-25 20:56, gdw wrote: There were many reasons / contributing factors for the financial crisis. It's an enormous oversimplification to pin it all on a home ownership policy. According to numbers I've seen, home ownership in the U.S. was 64 percent in the mid 1960s and peaked at 69 percent before the housing bubble burst. Various countries around the world have or have had home ownership rates at least equal to that, with no problems. Lack of proper financial oversight, to name just one other consideration, was probably at least as great a contributing factor (banks taking on more risk than they could handle) as any home ownership policy.
Make America Great Again! - Trump in 2020 ... "We're a capitalistic society. I go into business, I don't make it, I go bankrupt. They're not going to bail me out. I've been on welfare and food stamps. Did anyone help me? No." - Craig T. Nelson, actor.
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Josh Riel Inner circle of hell 1995 Posts
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On 2010-11-25 01:04, tommy wrote: I'd totally take that one if I were you! Just think of all the money you're making, It's a contribution to the health of the economy. However if I were me, and I believe I sometimes am, I would not take that because I hate the economy and especially hate everyone else who has money (Also my wife would beat me, she isn't very big but she knows where I sleep)... You don't want to be like me do you? edit: Do most people not use contracts? 'Cause all my contracts are pretty specific and I have yet to be forced to sign one. I believe by their very nature contracts -assuming you read it before you sign and not sign it unless you understand it- actually protect you as well as the creditor. I've got one for my house, my cars, my camper trailer, and credit cards to name a few and I just can't fathom how falling for the obvious tricks of a soulless crook completely indemnifies one of personal guilt. Might be wrong though.
Magic is doing improbable things with odd items that, under normal circumstances, would be unnessecary and quite often undesirable.
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gdw Inner circle 4884 Posts
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On 2010-11-25 23:45, balducci wrote: Not quite sure of some of your point, but I was not saying that too many people were home owners. I was saying that too many people who could not afford to be were. As you mention banks were taking more risk than they could handle, which was my point. The reason the took those risks is because the government backed them, so, in other words, it wasn't really a risk for the banks because they were told they would be bailed out, and that's exactly what happened. So, what did the banks learn?
"You may say I'm a dreamer, but I'm not the only one."
I won't forget you Robert. |
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Chance Inner circle 1385 Posts
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You guys are missing the over-all picture entirely. The banks in question KNOWINGLY and PREMEDITATEDLY offered mortgage loans to people they knew probably shouldn't be getting them. This was a concerted, deliberate effort on the bank's part. They even had a name for them: Liar Loans.
Why would they do such a thing you ask? Because there were buyers on Wall Street that were specifically asking for high risk mortgages to be sold to them. Who then placed bets that those very loans would default, and they would clean up in the betting pool. But for this conspiracy to work out the way they wanted, they needed the banks to offer loans to people who normally would have been refused. There is much more going on here than meets the eye. The dirty tricks are still happening as we speak, and even families that are making their mortgages are being evicted for no reason whatsoever, except that the banks and/or hedge funds lost their paperwork in the rush to illegal profits. It's the most insidious and despicable set of business practices I have ever heard of, and every single bank or fund manager that participated should spend years behind bars imo. |
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balducci Loyal user Canada 227 Posts
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On 2010-11-26 08:27, gdw wrote: I am just trying to say that it wasn't just because the government backed the banks or because of some government policy. In fact, the government did NOT back banks (which is why some billion dollar banks collapsed). It backed a relatively very small number. Over 100 mortgage lenders went bankrupt in 2007-2008, others had to sell themselves at fire sale prices to competitors with deeper pockets, and hundreds more banks have failed since 2008. A huge reason as to why banks took those risks is because they simply did not really understand either the risks involved. They thought they had the risks well contained. Their pricing models and risk analysts failed them. Chance is right about liar loans. There were a lot of issues underlying this financial crisis. It was a perfect storm of sorts.
Make America Great Again! - Trump in 2020 ... "We're a capitalistic society. I go into business, I don't make it, I go bankrupt. They're not going to bail me out. I've been on welfare and food stamps. Did anyone help me? No." - Craig T. Nelson, actor.
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Chance Inner circle 1385 Posts
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On 2010-11-26 13:39, balducci wrote: I remember certain articles warning of the impending housing collapse about 3 years before it happened. So it may have been a perfect storm, but it was not at all surprising if you knew what to look for. Deliberate actions lead to predictable results. The so-called housing bubble was man-made and quite intentional. |
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| The Magic Cafe Forum Index » » Not very magical, still... » » Lender Seizes Desperate Borrower's Homes (0 Likes) | ||||||||||
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Posted: Nov 25, 2010 07:07 am 
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