Quote:
Originally Posted by Glenhuon
Alex, the term usury comes to mind, something I believe in ages past they used to hang Jews for. Nowadays its legal no matter what creed you are. Except of course Islamic banking where interest (usury) is a no no. Its a form of fixed interest in a way (to my understanding). You want to purchase a property, the bank buys it and sells it to you for a sum which gives them a fixed profit. No increase/decrease over the life of the transaction. You know what your up for from day one. Sounds much fairer to me.
The atitude of banks in the last couple of decades reminds me of generals in WW1. Factoring in "acceptable casualties" to their plans and blaming inept junior commanders when questioned about them.
I've had conversations with people who worked in the finance sector and their attitude is unbelievable, its a big game of monopoly, they sit there juggling figures with ne'er a thought that they are dealing with real peoples lives. Government loses touch with real people regularly, but bankers have lived on a different planet for a very long time.
Bill
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Bill I think the problems arise from corruption of a good idea by those who scam the system..prime loans is a re run of a re run of a re run..each time it comes up the name is changed but it is the same deal..and it is always to hel[ out the folk that eventually get evicted...the loans are not for them but to fund the lawyers, builders, real estate agents, accountants builders etc etc who are the ones who come awy better off as well as the banjkers... and when no more can be lent the portfolio holder on sells to some fool who thinks because they are buying million dollar portfios of mortgages all is OK...
But why should they care it is the small investors life saving they spend... the result is always the same ..or as Geof puts it a credit squeeze..sounds nice and economic but this means fanmilies destroyed... I have seen how these events destroy families and lives..it is heartless....and as you observe the real sorrow is those dealing in this business work on the basis that there will be victims.. the current problem is simply they piled up too many victims before the axe fell...
I said some time ago here this problem would grow and it did and it is still growing ..I said gold wopuld hit $1000 per oz not because of any other reason than to appreciate that is where the smart money goes when the crap hits the fan... we are only dealing with the mortagage problem at the moment..the credit card chooks are yet to come home...
and at the high end of town higher corporate income equates merely to being able to borrow more... so what happens when all realise the debts will not get paid off like the directors said..everything is too high geared to be safe ... and if history is anything to go by such a situation heralds a major war some little time after the colapse... and so once the US gets the current presidential thing out of the way look out... even now the war mongers howl for action... anyways I dont care I am just stating a view which is mine and that does not mean it is correct by any means.
alex
