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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (70326)	9/7/2008 4:46:45 PM
From: Snowshoe	Read Replies (1) \| Respond to of 74559

Furthermore, the Executive Branch and Congress should have stepped in to spray cold water on the overheated real estate boom. But nooooooo, they fanned the flames. A pox on all of them!

To: carranza2 who wrote (70326)	9/8/2008 12:18:52 AM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 74559

It's certainly an interesting situation that has evolved C2. Of course I'm very much on the losing wicket by having my taxes misappropriated for bailing out the miscreants. Nevertheless, apart from the fine-tuning details such as I thought he was too slow to cut rates in Y2K and too slow to raise them again a few years later, he was right. ARMs were a cheaper way of funding mortgages for those who knew what they were doing. Of course people who go berserk are going to be in trouble no matter what and there's not much anyone can do about them, especially when they are egged on by counterparties lending to them with imprudence and even fraud with a view to getting "great lender" bonuses and too bad about the company's shareholders and financial backers, who should of course have managed their companies better. Alan was quite right that the household borrowing was a stabilizing force helping avoid a Biotelecosmictechdot.com deflationary implosion [see Deflation stream for people who used to worry about deflation back in the day]. Like the irrational exuberance comment, which very few people read or heard, which didn't stop them having false opinions about the situation, people also didn't read his actual comments about ARMs and misunderstood them, looking enthusiastically for a scape goat. Sure, people were enticed into borrowing too much and lending too much to the wrong people. < I know your response will be that the fools who borrowed and the fools who lent are equally at fault and that they should take their medicine. We agree. Unfortunately, the ultimate effect of this has been that the taxpayers, i.e., me and lots of others like me, are now shouldering the losses, > You got my response right! And I blame the people who vote for continuation of the silly electoral system which leads to the bail-out decision. Wait a minute, that's YOU!! You are against one dollar one vote, including for We the Aliens. Hence, I blame the electorates more than man behind the curtain, or the creditors or debtors. Mqurice