Couple of interesting thoughts about the current crisis

[pr€dator]

1.) I wonder how long it will take the presidential candidates to back a bailout and financial solutions for sub prime home owners. Just imagine the difference in votes a candidate would get, who would press for some kind of reform of bancruptcy procedures...

2.) Let's just imagine, that at the end of the tunnel, there would be some kind of solution, where sub prime home owners are granted new credit conditions, just like the dutch did by the end of the tulip mania.
This case might be one of the biggest examples, where the poor took from the rich.

 

[opm8]

Quote from pr*dator:

1.) I wonder how long it will take the presidential candidates to back a bailout and financial solutions for sub prime home owners. Just imagine the difference in votes a candidate would get, who would press for some kind of reform of bancruptcy procedures...

2.) Let's just imagine, that at the end of the tunnel, there would be some kind of solution, where sub prime home owners are granted new credit conditions, just like the dutch did by the end of the tulip mania.
This case might be one of the biggest examples, where the poor took from the rich.

LOL. Like any presidentidal candidate gives two shits about anything besides their own money. If the lobby groups work hard enough then there may be some sort of mortgage re-fi program, but only if some large financial entity benefits, of course.

opm8

 

[pr€dator]

Quote from opm8:

LOL. Like any presidentidal candidate gives two shits about anything besides their own money. If the lobby groups work hard enough then there may be some sort of mortgage re-fi program, but only if some large financial entity benefits, of course.

opm8

Good points. But what about the impact all the distressed home owners would have upon the economy by not being able to keep consumption (e.g. of chinese exports) going? The loss of this would far outweigh the 'stretching' of payments on a short-term scale. And as we all know, politicians do not tend to think long term.

Do not forget that there is also a credit market for consumer goods banks can make money with, aka spending cash on waste. Insist on mortgage payments, and you lose both the mortgage and the debt payments. Be more flexible on mortgages, and you keep both income sources.

It's all about competition and cooperation, as we game theorists tend to say

 

[QuantPlus]

Quote from pr€dator:

just like the dutch did by the end of the tulip mania.

I love this one...
Comparing the "tulip mania"...
To a 7% decline in the S&P 500 from all-time highs.

 

[arealpissedgoy]

Crisis?

Where?

I don't see any crisis. Unless you're trying to define a simple 8% market correction as a crisis.