I said, explain the high instance of sub prime loans, as in issuances - not loan recalls, whatever that is supposed to mean.
AIG Rec'd $170 billion in Bailout /Giving$165 million in bonuses
- Thread starter Twila
- Start date
Either way, there was a shortage of prime borrowers due to high housing prices.
Scapegoating. You fell for the "blame the consumer" "they defaulted". A 10% default rate looks aweful in the news and heartbreaking for the financial instutions but look at who still have the properties in the end. BANKS!!! What did they pay for all those sudivision? Once people start catching on theat this thing is all fear driven or get on ativan things will mellow out and the banks will e there with bells on to fill those houses with those who "take risk in these troubled times" or know better and are cleaning up like the banks are. $60K wil get you a house in New Orleans walking distance to the french quarter. $75 for 3200sqft in Mesa Az. There are bargains galore right now and all panic selling.
Explain how I'm blaming the consumer and how any of the above addresses my question to you about high issuances of subprime loans?
Like I mentioned. Big payouts and those who are still payning the bills and weren't sabotaged with all those issuances still means huge returns. The banks aren't losing by issuing mortgages nor are the percent based income brokerages. Up or down they make a cut no matter what and the banks never lost because they get the property at cost.
Creating a loan (sub prime or 19%) means creating money out of thin air for the banks. The more loans you hand out the more money you can create. There has to be a physical representation of money (physical cash created to back a loan the same is true for stocks bonds and other basic investments. If the markets go up somebody has got to start printing a cash so it exists. Even if the "market loses value" and they claim X amount was lost in the market in cash representation not the physical cash. It will always exist and somebody is always sitting on it. It's not like paper money is rounded up an burned it only means what it represents has increased or decreased. The money created out of thin air for all for loans never leaves the system.
We are lending them money they create out of nothing and charge us interest to bail them out from themselves.
You bet Kreskin and you'll soon notice people becoming more cognizant of this, as the Gov't bleeds us to death, if not with taxes then taking our money for bonuses for dead cat C.E.O.s. However when we start trading 25 bales of hay for a cord of firewood, or an hour of labour for a sack of spuds, then it makes it a little more difficult for the Gov't. to tax us. And one other advantage is these transactions don't leave a paper trail.
Just watched CBC's The Hour.....do you know how good the AIG execs that are getting the 165 million bucks....do you know what they did last year?
in the last QUARTER....in three months......they lost 61.7 BILLION (yep, that's BILLION, with a "b"!) dollars.
How is that even possible????????
And then to be rewarded....
in the last QUARTER....in three months......they lost 61.7 BILLION (yep, that's BILLION, with a "b"!) dollars.
How is that even possible????????
And then to be rewarded....
I guess in Canada we can say that as it's not our tax dollars that are baling these clowns out. Rewarding incompetence and skulduggery doesn't work regardless of which jurisdiction it's in. These guys should all be in jail.