SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Snowshoe who wrote (55304)11/1/2004 11:28:13 AM
From: Maurice Winn  Read Replies (1) of 74559
 
Snowshoe, Elroy's point is that the lender who loaned the money to buy the house, which is now in default, can't "buy" the house for a song and recoup their money if the value of the house has fallen below the value of the loan. So it's somebody else, who was a saver, not a lender who can vulturize the bargain priced house or shares.

Note that a saver who has money in a bank which goes bust because they made a whole lot of loans to house buyers who are bust, will also lose their money because the bank will tell them they no longer have money with which to buy the bargain house.

The saver will be the one who has cash in the mattress, government bonds, gold or pieces of eight, or other safe currencies. Which I think was your point. If banks go under, the savers' deposits do too.

I think I've got that.

Mqurice
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News