Bundling sub-prime loans

While many, many executives garnered in hundreds of millions in bonuses for buying up these packaged loans into cheat funds, the country was eating the poison every day for the last several years.
Anybody with an extrapolation table and common sense knew there would be hell to pay if not one year, another. But by then they would be rich and the stockholders would have made a few bucks.
Had it not been for the FDR bank amendments to the banking laws, we would have by now had a severe depression, not just a recession. Borrowing huge sums and only paying the interest has also helped with the total collapse not happening. But that day will also come sometime.
With $100-150 oil on the way, and if a cut-off should occur at the pumps or the flow stopped otherwise, desperation will come with that very quickly.
Of course IF that should happen we would immediately blow-up somebody, borrow more money to keep it going and ward off depression again---for awhile!
At about this point some on here will say: negativity, negativity, all of the time!
Economics is a simple subject studied by simple people usually, because there isn't much to it. All theory and most of the time useless.
Good resources, good workers, and common sense is all that is needed. But you have to hang the lawyers and uber-capitalists, also.
(did you notice the first thing Pakistan's ruler did when he seized power this week? he threw out the judiciary and then put the lawyers in jail!)We have always liked that though in that, and the South American area.

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Submitted by Nitpickers on Sun, 09/21/2008 - 8:56am.

The above comment was made 18-24 months ago!

Why didn't anyone care?

Fyt35's picture
Submitted by Fyt35 on Thu, 11/08/2007 - 6:34am.

I tell you nit, driving in to work this morning, nothing but bad news. The dollar is down; I heard of individuals now wanting to get paid in euros and not U.S. $, interesting. The barrel of oil hitting $100, but we continue to be oil dependant and support for alternatives in this country is virtually non-existent. Over 7,000 homes on the courthouse steps, in Georgia only, being auctioned off due to the sub-prime market. (Morgan Stanley announced yesterday it is taking a $2.5 billion write off due to the sub-prime loan market).

The stock market is giving indications of a possible recession unless the Fed continues to adjust the interest rates. In yesterday's trading, the Dow Jones Industrial Average dropped 360.92 points, the S&P 500 index lost 44.62 points, and the NASDAQ Composite Index fell 76.42 points.

The economy in Fayetteville appears to be doing well, however many of my builder friends don’t have any work. The once booming housing market in the county is pretty much at a halt with many brand new properties sitting, not even the incentives being offered are helping. Another place where I see the results of a slow economy is at the school, fundraising for the different sports and activities at out high school is down 30-40% across the board with many of the reliable backers now watching their money closely and parents not willing to part with money as easily now.

I don’t know what the answer will be; I’m an armchair speculator just like everyone else. I pray that we elect a president that can guide us through the current woes, regardless of party affiliation.

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