What other money can you have? Booze, drugs, porn as means of exchange? Certainly not gold, it's not as practical as the three things I just mentioned.
I propose we go back the booze standard.
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What is the point of lowering rates to 1%?
- Thread starter cybtropic
- Start date
What other money can you have? Booze, drugs, porn as means of exchange? Certainly not gold, it's not as practical as the three things I just mentioned.
I propose we go back the booze standard.
Quote from stefan_777:
Oh yes, but don't forget how this credit crisis started, they just peddled tons of balloon mortgages to everyone at low rates because people would take them, rather than take a higher rate mortgage. They're subject to supply and demand of loans and mortages. They can't survive being too cautious or not cautious enough with their loans(as we have seen with the failures).
It's not the subprime mortgages that are the problems, it's the worthless paper written on them.
The banks gave out mortgages so that they could write out derivatives on them and then sell those.
If you honestly think that lowering rates to 1% is meant to help you, you deserve to get screwed. The writing is on the wall, the question is whether you choose to read it.
Quote from Mecro:
But fiat paper printed at will by a private central bank is?
That goes without saying. You didn't think a post about booze and porn as a means of exchange contains a little sarcasm?
Oh ya, I'm from Canada. We have mortgage securitizers here, as well as a little sub prime. But don't come to Canada looking for a credit crunch that we brought upon ourselves. We have a well regulated banking system that lends responsibly.
You'd think the value of the derivative would be reflecting of the value of the mortgage it derives from, by definition. If a bank gives out mortgages doomed to default, it doesn't matter if they're securitized or not, it will become a worthless burden, someone (tax payers in this case) have to pick up the bill. But at least the world can now see the wrong way to handle mortgages and hopefully it won't happen again.