Grate Swan, Cool down there, bro, I was only expressing an opinion -- me, a guy who has no economic degree and has read but a few articles. I can get educate myself about derivatives and see if I misunderstood my previous readings, but can you educate yourself out of that high-hatting haughty attitude as easily? That attitude has my emotions saying, "fuck Swanny if he's going to be such a shitheel about punishing me for my daring to have an opinion without a scholarly background."
You're killing the conversation with a dark vibe. That said, I like so many of your posts, that I'm choking back my words for the sake of future goodwill, so work with me here. As for the points you make, I get the satire, believe me, but caveat empor only goes so far in mitigating the sins of the financial industry. Are you a Ron Paul supporter who would abandon so many institutions and laws overnight and then hope that the ensuring melee would eventually sort itself out? There's some very very smart folks marauding some not-so-smart folks, and the proof that caveat empor is not the only proviso that can be relied upon is that the housing collapse happened. Why? Because the bankers were NOT TELLING ANYONE ABOUT CAVEAT EMPOR and instead marauding the masses when the masses suddenly thought they had a quick way to get a nice house and eventually sell it for a profit that was far beyond what other investment vehicles could promise. The bankers knew or should have known and I've read that they did know about this bubble-about-to-burst up to five years before the burst came, but during all those years they were arranged for mortgage after mortgage with folks who had no wherewithal to speak of. It's one thing to just say "let them all die," it's another to see that ordinary folks are not able to invest safely without regulations limiting the hype of investment bankers. Edg --- In FairfieldLife@yahoogroups.com, grate.swan <no_re...@...> wrote: > > --- In FairfieldLife@yahoogroups.com, Duveyoung <no_reply@> wrote: > > > > I tend to forgive the house buyers who took out the loans for houses > > they couldn't afford, because the housing market was tremendously > > puffed up by the selling of the derivatives. > > Say what? Do you care to explain your understanding of how that > occurred. And how (by implication I get from your statement), that > derivatives were the primary force raising housing prices? And please > define your understanding of derivatives. > > > Folks were seeing > > everyone all around them making money on their home equity increases, > > and if greed overcame their ability to set a reasonable financial plan > > for themselves, it is quite understandable, but the banks are the ones > > who pushed these thousands of homeowners-to-be to trust the > > equity-profit-trends even though they knew they were ballooned out of > > all proportion and that the prices these folks were paying for a house > > was ALREADY INFLATED BEYOND ALL PROPRIETY. The banks just churned the > > suckers. > > I am totally there brother. in 1996-98 I saw all them smart-assed > techno types investing in Amazon and fiber optic switch companies and > making 1000's every day -- and partying it up -- and I said, "Yeah, > why not me!? I deserve that. Why can't I get me some of that. So I > invested near the top of the bubble. > > And those damn, greedy, brokers just took my money. They didn't do the > right and moral thing and say -- "hey you know this stock could go > down, way down." or even "You know some people feel this stock is over > priced." And of course even if they did, I would have yelled back, in > supreme indignation "Yeah, you just DON"T GET IT! This is a new era. > Stock prices have finally been decoupled from earnings -- Its the > INTERNET AGE you fucking moron!". > > Well, I lost a lot. But now finally I meet someone like you who > TOTALLY gets it. It WASN'T my fault! I wasn't stupid or greedy. It was > them damn brokers, and techno kids, and all them other fucheads who > were making money when I was not. I am SOO GLAD you get it. > > So my questions is, how soon will the check you need to cut me to > cover my losses be delivered? > > > > > They say there's 19,000,000 VACANT houses right now on the market. > > When the boom began, a good portion of those houses were on the market > > then too -- supply was way beyond demand, but housing prices increased > > because the derivative market puffed them up. > > Say what! Can you go through that chain of logic and relations ships > -- slowly. >
