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When you read newspapers and watch TV it seems like banks throughout the world are to blame but is one country to blame for all of this and it has spiralled out of control ?
Personally i blame my own UK government for letting millions into the country and chucking us feet first towards being a third world country with debts into the trillions
Couldn't agree more.Quote:
Originally Posted by wraggster
My views on people getting let in the UK are very story and most likely racist so i'm not going into that.
I also agree about the third world country crap, I don't think we should help at all. We are nothing to do with them, but again. Thats my opinion.
Ignorance is bliss…?
Basically banks here in the US developed a legal scam in which they'd give out mortgages that would allow people to buy a home who had almost no realistic ability to pay them, and a pricing structure in which the rates would drastically increase after a relatively short period of time.
The result was that people thought they could all of a sudden afford these nice homes, only to later lose them to the banks.
At the same time, people who COULD afford it realized that they could buy homes and resell them ( a staple of real estate in places like miami, my parents have done it for ages) with relatively little down. The problem is that people who COULDN'T afford it also realized that they could do the same thing, but once so many did so at once, the housing market collapsed as all the open homes were bought up and everyone was looking to make 20% on the deal, then would get hit with the increased rates on the mortgage.
At the same time, a large amount of both of those groups would fudge the values of homes by buying them for way more than they were worth, and getting the sellers to kick them back most of the money in cash afterwards OR by getting appraisers to lie. The result of this was that they could pay, lets say 120,000$ for a home, say they paid 180,000$, get a mortgage for a 180,000$ home and use this short term money to fuel buying larger homes.
In the end, both the banking side and the real estate side were scamming each other and lots of random people and organizations(the banks would sell of many of those mortgages to other banks knowing that there was no way to get the money back for it) got caught in the crossfire.
I N.Ireland developers drove the house prices to unreasonable prices (up 80% in one year while the rest of the uk increased by only 10% or so, even though N.Ireland has the lowest average wage in the uk). Now that ass has dropped out of the market so many first time buyers have been ****ed over.
As for immigrants I don't think they anything to do with the recession. The fact is , in general rich countries get immigrants because the locals will not do the shit jobs that immigrants will do. The tabloids really over hype the immigrants thing (little the do with most things), before the recession 1/5 immigrants go back home after a few months, but now that has increased hugely now as there are less jobs and the pound is now weaker against the €
I blame the Nazi-commies !!!!!
House down the street from me went from 1 million in 04 to 7 mil in 06. Now it's back down to a still inflated 1.5. Insanity.
Who's to blame?
IMO US banks giving away mortgages to people that couldn't afford such debt
The US housing mess was more a trigger than the entire cause IMO.
Blame the regulators for not regulating, allowing banks to leverage their asses off way beyond 'conventional wisdom' (they got REAL greedy). It was a house of cards built with funny money then it all fell apart.
Unregulated capitalism is NOT the answer to how to manage an economy any more than totalitarian communism is. Politicians are finally seeing this after their economies falling apart drilled it through their skulls.
'That’s frightening for a couple of reasons. Firstly, as Winkler notes, it means the bank has $56 of assets for every $1 of common equity. — or a leverage ratio (assets/equity) of 56. With leverage of 56, if the value of those assets were to fall 2 per cent (not so unlikely in the current writedown-prone environment), then common stockholders are wiped out. This tallies roughly with FBR’s argument last week for the need of $1,000bn in tangible common equity to absorb losses stemming from what is essentially an over-leveraged financial system.'
At its worst, there is little difference between the stock market and a pyramid scheme apart from legality.
The shit hit the fan, the rich who caused the mess stay rich and the rest of us pay for our politicians to scramble and throw out cash to businesses to stop them going under and causing the average person more damage than the cost of the money we're throwing after their bad business practices.
Could be that this is a deliberate orchestration by the powers that be to make the public so poor and miserable by stock piling drums of oil and warehouses full of cash so that by the next time the want to invade the middle east, we will be begging them to do it instead of having anti-war marches.
Although I could be paranoid :D
To blame the UK government for the global recession is to over-estimate the UKs importance in world finance.
When the Japanese banking system went belly up in the 90's it caused problems for some other countries in Asia but did not have much impact on Europe or the Americas.
When the US banking system has a problem it effects the whole world. It doesn't matter who is in power in the UK right now, the UK would still be in the position it is in now. The only thing the UK government can do is try to limit the damage and not make it worse.