Forum Post: BLAME and Responsibility - the facts of our economic crisis
Posted 13 years ago on Oct. 14, 2011, 12:22 a.m. EST by darkhound
(66)
This content is user submitted and not an official statement
The POORS blame banks for using LEVERAGE via derivatives, causing the financial crisis. What the POORS don't acknowledge, however, is that the derivatives were based on mortgage backed securities.
It was the POORS who decided to LEVERAGE up (via jumbo loans) to buy McMansions they could not afford. It was the POORS who failed to honor their contracts and to default on their mortgage payments.
So while banks may have had some role as the PROXIMATE CAUSE of the crisis, the UNDERLYING responsibility lies with the masses of POORS.
Of course, the POORS, as they are apt to do, shirk responsibility and are scapegoating the banks.
To avert full-out disaster, the government had to step in with tax money. Who pays the vast majority of taxes? The RICH. In other words, the RICH bailed out the POOR for their stupid, financially unwise decisions to buy unaffordable McMansions. And THAT"S the really irony of this all.
If someone came to you and said you could make a thousand dollars and all you had to do was buy a house and sell it in one year, no risks at all, would you do it? A lot of people did that. Everyone thought housing prices will never go down. Even The Bernanke said that in one of his interviews (right before the crash). It was greed everywhere. The ones that bought the houses, the ones that sold them, the ones that packaged the loans and the ones that sold CDS for them. Wall street didn't plan this whole thing knowing the crash was coming. They made stupid bets and lost. Lucky for them, they were able to hold the economy hostage and demand the government bail them out. No one bailed the house owners out.
I've said it before, and I'll say it again: One of the main pillars of Conservative propaganda is that both parties are the same. Nothing they say is further from the truth. It is an insidious lie intended to demoralize progressives, and discourage them from voting. Do not fall for this canard, because if both parties are the same, there is no hope for change, and therefore no reason to vote. The truth is that there is a difference between the parties. A stark difference! One party works for the rich, the other party works for all Americans. One party takes money from the needy to feed the greedy, and the other party takes money from the greedy to feed the needy. One party has plans and policies to create jobs, and the other party has a long list of lame excuses for not doing anything. Liberals want to change things. Conservatives want things to stay the same. There is a difference. One party wants to tax the rich, and the other party wants to tax the poor. One party wants to destroy Unions, and the other party wants to support them. One party supports the Occupation of Wall Street, and the other party doesn’t. One party wants to rebuild America, and the other party doesn’t. One party wants to provide health care for all, and the other party doesn’t. One party wants to regulate Wall Street, and the other party doesn’t. One Party wants to end the wars; the other party wants them to go on forever. There is a difference. One party is Myopic, and the other party is Far Sighted. One party wants to help the Middle Class, and the other party is at war with the Middle Class. One party wants to fire Teachers, and the other party wants to hire them. One party wants to create more jobs in America, and the other party wants to create more jobs in Asia. There is a difference. One party wants to protect pensions, and the other party wants to loot them. One party has a heart, and the other party has Ann Coulter. One party protects the right bear Arms, and the other party protects the right of freedom of assembly. One party believes that the only role for the Government is to provide for the common defense, and the other party believes that the Government should also promote the general Welfare. There is a difference, and anybody that tells you there is no difference between the parties is simply not conversant with reality. In addition, anyone that blames the Democrats for the current state of affairs has no understanding of who controls the Government. One Party has the Presidency, and the other party has the Majority in the House, controls the Senate, has a majority on the Supreme Court, and is responsible for current economic policy. So, if you’re angry, and you want to start a real fight, I submit that we should start a real fight with the Conservatives! America has a Two Party System. One party is clearly on your side, the other party thinks you’re and Anti-American mob. At some point in time you’re going to have to pick one. Choose wisely, your future is at stake
Yes, "a lot of people did that." A lot of people were stupid and irresponsible. What's your point?
A house is an investment. Like any investment, the value can go up, or it can go down. If you're stupid enough to put down only 5% (that's 20x leverage) as many people did, then it's your own damn fault you lost money and your house. You deserve your losses.
Take responsibility. You can't blame the casino for your gambling losses.
Sure, the government bailed out the banks. But as I said, who pays the vast majority of taxes? The rich. So the rich bailed out the banks. What are you poors complaining about?
I was trying to explain why they are angry. If the bank tells them they will not lose money most people would trust the bank and buy a house. Their ignorance and greed were exploited. Both sides are to blame for the crash. Nothing to do with taxes though.
The POORS are stupid for not using their independent judgment and have no one to blame but themselves.
OF COURSE the bank is going to try to sell you a mortgage product. Just like a car dealer is going to tell you that a car is a good deal. Just like a financial adviser is going to try to get you to buy his mutual funds. Just like the car repairman is going to say you need repairs.
DUH!
But if you're going to take out a 600k loan to buy a McMansion, you have a duty to do your own due diligence. The POORS didn't do that. They crashed the economy. And now they are vilifying the smarter people (i.e. the RICH).
Again, the GOV, and those with morals used to take responsibility for those with less intelligence ( sometimes). But now we have "prosperity churches". WTF?
Government regulations were enacted to prevent unintelligent, intelligent, gullible, greedy people from creating another Great Depression. Many of those Regulations were repealed in the last 30 years. Blame the unintelligent, greedy, gullible people all you want, but it won't change the current state of affairs. Some feel the intelligently greedy bear more responsibility.
People who bought at the top also lost money. Even though they were able to pay, they walked away becau the houses were so much under water. The ones that couldnt afford it in the first place should just consider the payment as rent. I dont agree with portraying them as victims either. They are no worse off now than they were before. Which was without a house.
Actually I think this is closer to the truth: http://www.youtube.com/watch?v=TX1N3opw5eI
So you wrote a stupid response to another thread and thought it deserved its own?
The GOV used to accept responsibility for the poor, realizing and accepting many of them are not good managers of money, and not allow them to take out huge loans. The GOV stopped doing this, and all hell broke loose.
http://occupywallst.org/forum/for-ron-paulistas-and-bernankians-some-comedy-rap-/