How can this happen to the richest country that ever graced the Earth

Discussion in 'Off Topic' started by Fabian, May 19, 2013.

  1. Fabian

    Fabian Well-Known Member

     
    Last edited by a moderator: Dec 15, 2015

  2. Sgt. Howard

    Sgt. Howard Member

    What he fails to mention is how Fannie May and Freddie Mack were lured into loans to unqualified homebuyers with the posibility of forclosure profits through a deliberate 'set-to-fail' program instigated in the name of 'affirmative action', a program aimed at minority buyers where the standards were relaxed enough to allow a buyers to 'purchase' a home while paying 3% over the intrest as mortgage- several years down the road the 'homeowner' has but a pittance of equity (if any) or owes more than the home is worth. The idea was that the loaning company could collect ten, twelve years of payments, then involk forclosure at the slightest provication and re-sell the property.
    The problem came when too many forclosures flooded the market at once and NOBODY was buying, thus tanking the market. A perfect scam, robbing minorities and padding the banks- but they got too greedy and you see the results.
    The banks came out of it well enough- the same Illinoise Senator who started this program to begin with became President and saw to the bailout of those institutions that participated in it.
    He always was good at getting other people's money- that's what a fundraiser does, after all.
     
  3. BigBlue

    BigBlue Active Member

    The economy was tanking before the housing bubble and then the politicians got us into two wars, but had no way to pay for it, so they loosened the credit requirements and looked the other way by not regulating the industry. Now instantly, you had millions of families qualify for houses that could not afford them. Both the left and right got what they wanted. As a benefit, the economy kept going and helped pay for the wars, but debt kept accumulating for individuals and the US government. The housing bubble was only a short term solution. Added to this was the speculation going on with average people interested in "flipping houses" to make a quick buck. Liars loans were commonplace where people didn't have to prove their income and in a lot of cases lied about their income. The liar loans and under-qualified loans were toxic and where repackaged, upgraded by the rating agencies and sold to unsuspecting investors as AAA++ bonds. The problem developed when the economy slowed. The housing market had reached a saturation point and consumers were maxed out on their credit. You can only buy so many new cars, furniture, tvs, etc. The mortgage and bond companies knew that good old Uncle Sam would bail out the banks if a financial collapse happened - and guess what, they were right and had the largest profits the year after the financial collapse.

    The #1 export for the US is debt, consumer, student and corporate. The US depends on the housing market for growth in the economy. Without it, the economy would be flat - that is why there is productive talk on immigration. The politicians and business community finally realize that growth in non-white population equals growth to the economy.

    We've sold our souls to the belief that we will benefit from globalization and NAFTA. In the short -term we did, but in the long-term, we done some irreversible damage. The only people that benefit in the long-term are the top 1%. The middle class has been wiped out and the poor become poorer.

    That's how we got here, but it ain't as bad as China's Ghost Towns.

    Chris
    AKA: BigBlue
     
  4. Fabian

    Fabian Well-Known Member

    Maybe America should look to Australia: we have an economy that is the "envy of the world" or so our politicians keep telling us.

    Australia has the highest house prices in the world and in 10 years time the average (small house) built on a toxic waste dump will be worth over 1 million dollars.
    Australia is also set to go through another mining boom, selling unlimited quantities of uranium ore to India, even though the Australian government said that they wouldn't sell uranium to India, but big money has a way of persuading hearts and minds into making the most profitable economic decisions.
     
  5. grinningremlin

    grinningremlin Active Member

    That's just a symptom of the main problem, humans in general, greed and fear being the main motivators.Americans forget history, even recent history, we stopped producing anything anyone else wants, we reproduce too much, and we s.h.i.t. where we eat.Bill Hicks put it best "we are a virus with shoes".
    I believe it's roughly 250 years lifespan for a democratic society, so we're probably well within an oligarchy.I've said it before and I'll say it again, we need a grand mutation to get off the carnival ride.
     
  6. darwin

    darwin Well-Known Member

    LIBERALS are the problem. They want money from folks who work to give it to those that don't or won't, friggin Period!
     
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