I wonder if his poor grammar is legitimately poor or calculated....
- Thread starter RichardPeterJohnson
- Start date
The Big Short did a great job of explaining the housing crash. They went into the derivatives a little bit but it was very easy to understand. You should definitely watch it. It's a movie with documentary style flavor to it with a bunch of famous people playing the part.
I also liked Too Big to Fail though it was a little biased.
I'll say this, I've cleaned up in the wake of the crash. I've managed to pull together about 15 rental properties that I'm right side up on and will be clean on the titles in about 5 more years. I just keep reinvesting into more property. It all started with the house I got on a short sale when I lived in Cali. $600k house I got for $200k. I kept it 3 years and doubled my investment, from there, I used the money to cover the 20% mortgage on several homes. This is my little retirement nest egg. Goal is to have about $200-300k coming in off of rental property a year once I'm retired.
There is nothing wrong with making money, that's why you got your masters degree, wasn't it? I'm so tired of liberals saying it was greed. The real problem was our government telling the banks to make loans to people who couldn't afford thema nd penalizing them if they didn't. What part of that is so hard to understand? It's just another example of our government getting involved where it shouldn't. The results speak for themselves. If Obama had just let the bankruptcies progress as fast as they could, we would be in better shape as a country. Slowly cutting your leg off doesn't really help when your leg has gangrene.
I wasn't in a position to do all of that at the time, but I did do fairly well in gold when I saw it coming.
That's actually not why I got my masters degree. I mostly got it because I finally wanted to finish one. From the time I graduated college, I've been in 5 different graduate programs in various disciplines and didn't finish them (except the last one) for various reasons. Life events got in the way. I worked towards masters degrees in Electrical Engineering, Systems Engineering, Modeling and Simulation, Software Engineering and then finally my MBA.
I love learning.
https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_during_the_Great_Recession
Many of these wouldn't have failed just because of the mortgages. It was absolutely greed that led them to create and trade the derivatives that crushed them.
You keep ignoring the fact of what even put the derivatives on the plate. Our government being run by full retards. If those loans weren't available, would there have been derivatives? If the tree falls in the woods and nothing is there to hear, does it make a noise? I'm glad you like to learn, it's too bad our governemtn never does. My understanding now is they want the banks to make more full retard loans to Hispanics based on the number of people in a house. Brilliant.
Do you check the box and pay more?
![[laughing]](http://l.yimg.com/j/assets/img/emoticons/classic/laugh.r191677.gif "Laughing [laughing]")
I'm going to have to borrow 20,000 to fully fund my 401k/ profit sharing to avoid paying more taxes for last year and increased estimates for this year. I know you pay your taxes, it was more of I'm so tired of the fair share crap.
I'm not ignoring anything. But yes, those derivatives existed even before those loans were made popular, they just spiked during the housing bubble.
I'm acknowledging both roles in the collapse, you are only acknowledging one.
Do you check the box and pay more?
I certainly don't pay more than I have to. If I end up having to pay more for the overall good of the country, I'm OK with that. People want to send our military everywhere to protect/better our country, many of which will be killed or come back permanently disabled. We don't think twice about that ... but when it comes to something as simple as paying a little more money, people go apeshit. The only conclusion I can draw is that we value money over life and that's pretty sick.
No, we see how our govt wastes money from shovel ready jobs, they weren't as shovel ready was we thought, to Solyndra to 432 billion to sanctuary cities. I'm not paying anymore than I have to because our govt continues to pay people like Lois lerner's pension for breaking the law. Do I need to go into welfare payments to healthy people? Foodstamps?
Derivatives played a part but if our illustrious govt hadn't been backing up those bad loans and making banks make them, we wouldn't be in the shape we are in. Which came first, the chicken or the egg?
Ok. I thought you were saying the derivatives caused the housing collapse. The biggest factor contributing to the last two bubble collapses was the decision in 89(?) by Greenspan to bail out Lehman Brothers. That let the financial industry know they could take big risks and the feds would be there to bail them out. That bail out corrupted the system for a generation and maybe longer. Bernanki shows no sign of changing direction.
Quoting anything she has to say on any topic is reckless. She is as "left-dumb" as they get.
Obviously you understand now that's not what I was saying, sorry for the ambiguity in my post. I'm not familiar with any decision by Greenspan to bailout Lehman Brothers.
I disagree that the bail out corrupted the system, I think it's a corrupt system to begin with. Airport blames government, but who was lobbying and pressuring government to ease up on regulations?
Prime example was Citi acquiring/merging with Travelers. Part of Glass-Steagal was the separation of banks and insurance companies, so that acquisition should have never happened. They started it, and then instead of somebody stopping it, GLB was passed in 1999 that allowed it to happen. I don't think it was coincidence that Citi started something that was illegal and then suddenly it became legal while they were in the process.
Now, I'll agree with Airport in that some of the things the government did are things they shouldn't have done, but also, they don't come up with these ideas themselves. They are driven by greed from the banks who then lobby and make contributions to get the changes they want.
The system is corrupted and both private industry and our government are complicit in it.
I had some details wrong on that. Bear Stearns, Merrill Lynch and Lehman Brothers we're the creditors for Long-Term Capital who actually got the bailout in 98 (not 89). But it encouraged creditors to make unsound decisions thinking the government would be there to bail them out. Turns out they were right.
Last edited:
How do you know? He won't release his returns, maybe he doesn't pay what he should.
