Shit-talking Capitalists

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Originally Posted by K3V

Variable interest rate loans are for suckers.

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QFT. Seriously, the suckers are dying out there. BSC is one of them. I mean how are hard is this.
Lender1: I can loan 300k for a house @ 4.7 variable
Lender2: Sure but I keep hearing about this housing bubble
Lender1: Sure but thats the risk of the low rate, should the bubble burst we maybe seeing rates as high as 10-11% (hypothetically) which would result in a minimum payment increase higher than my sucker's take homepay
Lender2: That sounds like a RISK, and possibly shadey.
Lender1: Lets do it anyway, we'll make tons of money through new loan opportunities that were not available before because these people were too prone to default before.
Lender2: Er, doesn't that mean they're prone to default if the rates go up?

and so on. And I'm a a complete moron with money.

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Originally Posted by MarsKitten

Capitalism is predatory by nature. Thats how it works, the weaker entities make bad choices and fail or are taken advantage of while the smarter, stronger or better positioned profit and survive. The market isn't a zero sum game but everyone will take a loss eventually.

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that isn't true conceptually. Capitalism is just the buying and selling of goods and services by private individuals or corporations. It doesn't have to be predatory. It only becomes predatory when the people who participate in capitalism become predatory.

Well here's the thing, its not like we're in a situation where we have contracts of adhesion that're the only game in town. Most banks offer fixed interest loans. Yes they're higher rates but thats how its should to be. An exchange of certainty and safety balanced against a lower and potentially volatile rate.

The fed sets the rates to which the gov't lends to banks, thats fine it control's the money supply. The government is the only game in town for new US currency. Banks don't have a real choice so I'm comfortable with this sort of control lest we devolve into a competing currency situation where every bank issues their own notes, banks didn't do things like KEEP MONEY ON HAND TO COVER WITHDRAWALS and such.

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Originally Posted by MarsKitten

Well here's the thing, its not like we're in a situation where we have contracts of adhesion that're the only game in town. Most banks offer fixed interest loans. Yes they're higher rates but thats how its should to be. An exchange of certainty and safety balanced against a lower and potentially volatile rate.

The fed sets the rates to which the gov't lends to banks, thats fine it control's the money supply. The government is the only game in town for new US currency. Banks don't have a real choice so I'm comfortable with this sort of control lest we devolve into a competing currency situation where every bank issues their own notes, banks didn't do things like KEEP MONEY ON HAND TO COVER WITHDRAWALS and such.

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or just flat-out refuse the money to people who were risky to begin with. The whole sub-prime lending debacle is a perfect example of it. Those morons - who didn't have the money to begin with - sought out loans for houses they couldn't afford. Now their rates are going up and defaulting on their loan.

This country has a big spending problem - spending money they DON'T have. Living beyond your means is a dangerous proposition and if you're not carefull you'll get burned.

These words uttered more often would save alot of lenders heart aches and ulcers.: I'm sorry, but you're not a good risk.
These words would save people alot of pain and suffering: "No we cannot afford that right now, we've better save up and look for a better deal in the meantime."

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Originally Posted by g0zen

I don't know where you got that I was ever a free-marketeer to begin with, because I'm definitely not. I'm not a socialist either, and neither is Kramer.

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Then what are you?

It's called the middle-ground; a regulated capitalist system with a social safety net. We've had it in this country for going on sixty years.

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Originally Posted by Type Ryan

or just flat-out refuse the money to people who were risky to begin with. The whole sub-prime lending debacle is a perfect example of it. Those morons - who didn't have the money to begin with - sought out loans for houses they couldn't afford. Now their rates are going up and defaulting on their loan.

This country has a big spending problem - spending money they DON'T have. Living beyond your means is a dangerous proposition and if you're not carefull you'll get burned.

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IAWTP. And it is 100% the individuals' responsibility to not get in that situation. It's not the lenders', and it sure as shit isn't the government's.

Haven't credit cards been allowing people to live beyond their means for decades?

Yes, and those are the responsibility of the individual too.