Quote:
Originally Posted by Bjorn_Tasty1
Dutch banks are only bad for starters on the housing market. And that is mainly because the government and banks suck. In Holland you can't get a mortgage (or it is hard) when you don't have a work contract at a company. If you only have 1 or 2 year contract, no mortgage. And the economy changed, most people switch jobs more and don't have a life time contract with a company. If you have your own company it is even worse... A lot of things that have influence on the housing market and a government wasn't able to solve it (build much much more houses). But when governments sell ground for housing, they also want the jackpot (and than complain that houses are so expensive).
We agree, we will go down again.
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but look, this is the way it should be.
the banks do not give their own money - they give the money from the small saving accounts of normal people. do you think they do not have to take care this money ?
try to buy a house in germany or spain - you will not get a loan whan you are not able to pay 50% of it from your pocket. try to do that anywhere else in the world and you will see the same - except in USA - you donīt need much own capital to get a loan even when you can get fired from one day to the other.
banks are usually not taking this risk. they sell this shitty papers by selling them together with other papers to other banks or they buy an insurance for that. and the insurance is investing the money from the small people. and they are in this "too big to fail-position"
trump opened exactly this possibility again on his first day in office because he eliminated the dodd frank act what was at least a BIT of security.
he has once again given banks and financial service providers the opportunity to speculate completely freely with saved money of small people.
and in europe, the stricter control of the financial sector doesn't help us if they are ultimately secured by a US insurer. then we simply pay this bill in europe although we didn't cause it at all.
this bill has never been a trump card to anyone because even if some banks went bankrupt in the usa, the "too big to fail" institutions were ultimately rescued by the credit insurers. and these in turn received more than 90% of their rescue money from the european states because the european banks were also insured there.
so finally USA banks have been rescued from europen states. and now they are allowed to give this money again to people who are unable to pay it back. the only difference is that they give out MUCH MORE unsafe loans as before.
and there is another difference now:
as europeans have learned this lesson they are using much more credit insurances from insurance companies in europe under european law.
that means: in the next crash they have no reason to help the biggest US credit insurance any more.
and THIS is the reason why they do NOT give loans that easy.