Quote:
Originally Posted by Snake Doctor
BTW, your line about people aren't going to make bad investments? 
How the hell do you think we got in this mess? People bought overpriced houses they couldn't afford, got mortgages from banks who sold those bad investments to the bond market, and the bond investors bought credit default swaps to insure against mortgage defaults.
All of those were bad investments, trillions of dollars worth, made by both average consumers and so-called investment geniuses. |
i meant people buying debt and investing in the financial markets to pay for printing 1.3 trillion dollars. "confidence" plays a role in the financial markets in the short term and has a short term influence.. not over the long term and in dealing with self created inflation and devaluing the existing investments in our debt. i am talking about what it takes to actually finance 1 trillion dollars we don't have and recovering from the consequences of printing that money. a compelling speech doesn't change the economics of the value of investing debt... and that's how debt is financed.. its financed by investors and those willing to invest.
and you're right.. the whole system went totally sideways for a long chain of reasons in the housing market/lending. no one complained.. no one cared. everyone on every level was happy to grab what they could and eager to get into homes they couldn't afford... that's precisely why the entire system should have been allowed to crash.
instead, we are going to have more regulation, more oversight, more rules, more legislation, more government and idiots that should have never bought a house they couldn't afford to begin with are going to be allowed to keep those horrible investments at the direct expense of tax payers.
lesson learned?
simple..
"its not your fault"
nice