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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (376665)	10/20/2008 8:00:22 PM
From: Trumptown	Read Replies (2) \| Respond to of 436259

<<my reference to the last 7-8 years was to the unbelievably low interest rate environment during that period that spawned the housing and mortgage mania, as irresponsibly facilitated by Fannie & Freddie and the ludicrous CDO market that was allowed to evolve, without which this nightmare would not have been allowed to grow to such proportions>> Ahhh, but the low rates were not the problem...any responsible institution would not lend money to someone who had a low probability of repaying it (regardless of rates). Rates were going down to encourage more borrowing (not irresponsible borrowing). Those in charge knew they needed to keep it going or risk a recession... Legislation was passed to force, or allow, (depending how you look at it), these very institutions to give loans to anyone willing to sign on the dotted line. This resulted in a huge boon for these lending institutions (albeit…temporary). The institutions then began seeing tremendous bottom lines (on paper). After all, this BS caused real estate to go thru the roof (supply and demand -101), making loans even easier to give out (after all real estate was always going to go up…right? wink, wink) Now, on the heels of institutional failures, the government realizes, they (or, their predecessors) essentially caused/allowed this mess to happen…so, they force a bailout down our throats to ‘save the day’ But now, put in the background, over the last 15 years or so, shipment of millions of blue and white collar jobs overseas (corporate greed) leaving the country as simply a consumer (we produce little but paper anymore) Bottom line; the same problem exists, more easy money being created that won’t get paid back, only on a much larger scale. Our government and business leaders (thru greed and corruption) are driving this country over the cliff…we are headed for failure…just not sure how much longer it takes… Here’s the twist: since we are by far the worlds largest consumers, many other countries need our economy to stay alive or they get hurt…so, they will continue to help… Kinda like the dealer keeping the junkie alive….but at some point it’s ‘oh well’… <<but most people simply don't get it that their stock market game they grew up with has fundamentally changed forever and that we are in for years of hurt>> - they will, but it will take a some time… << but for now the economy has just pulled out onto the southbound expressway to hell and I don't see anything changing for the positive for the foreseeable future>> - no doubt