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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (88188)	10/30/2007 12:48:09 PM
From: Mike Johnston	Read Replies (4) \| Respond to of 110194

"but its easy, without government intervention, for the rich to screw the poor, fact of life. " But what if government is screwing the poor for the benefit of the rich ?

To: Proud Deplorable who wrote (88188)	10/30/2007 12:52:37 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

I don't feel sorry for speculators getting burned. Everyone needs a home and many are being deprived of one by people who need to own 10 of them. I feel exactly the same way. But it is reckless government policy that created this situation.

To: Proud Deplorable who wrote (88188)	10/30/2007 1:43:09 PM
From: benwood	Read Replies (2) \| Respond to of 110194

The gov't did its part to enable this real estate bubble, from the Fed's loose monetary policy, to the quasi public black hole of mortgages Fanny Mae to the removal of the mortgage regulation put in place only 20 years before because of the S&L debacle. You're right, though, it easy for the rich to screw the poor. But that's no reason to lower the standard of living for all. I don't think one should mix the desires for a global hegemony through military intervention (or a quest to create the state for the second coming) with the corporate socialism problems of the US. Free market is a religion, too, a better one. But it too has holes. I think the smaller gov't role is to regulate (e.g. sorry Charlie, but you cannot dump those toxins on that playground just because it improves your bottom line...). The housing industry would be sane and affordable, with plenty to rent for those who don't want to (or can't) own, if they'd jettison all the interventions they've done so far: tax break for mortgage interest; Fanny Mae sponge of whatever garbage comes their way; elimination of off balance sheet hiding places for mortgage holders. Make the lenders have to take the risk, instead of creating loopholes so they can jettison the risk onto those who haven't learned of the scam yet.