Thread: Why I support the 1%

Originally Posted by ninja9578

Predatory lending is a term used for when banks loan money to people at interest rates higher than they can afford for necessities like housing. The banks can impose high interest on the poorest people (because they are higher risk.) Lots of Americans have paid back to the banks twice what their house is worth, and are still in debt. The borrowers have no choice, no one can afford a house/car without a loan. Houses aren't necessary, but cars are everywhere except the city. Interest rates are also not always fixed, so you don't always know how much you will actually end up paying back.

Human rights like decent shelter should be provided by the state.

If you want to upgrade from necessity to luxury, that's your call.

Originally Posted by Omnis Dei

Xei, What world are you living in? Could we please limit this thread to all discussion related to Earth?

In answer to your question, the banks sell off the toxic mortgages afterwards so they don't have to deal with it when it falls through. The instituions that bought them had no idea they were toxic.

And if that was the result of the fabrication of information then the banks have committed a crime and should be sued by those institutions. Your point?

Originally Posted by Omnis Dei

If you know the way this country's financial system works you'd know that the worst thing a creditor can do for the economy is give out loans that have less than a 51% likelihood of being paid back. Such behavior is intentional destabilization of the financial structure.

Of course, there's nothing banks love more than a depression.

Originally Posted by Xei

Of course, there's nothing banks love more than a depression.

Sounds like we agree, you just don't have all the facts on the issue.

Many of our congressmen, such as Nancy Pelosi, urged people to stay in their homes and refuse to leave because the foreclosure crisis was manufactured. The only reason that the falsely distributed foreclosures story saw the light of day was because people sued over it. What happened to the banks? They handed out some settlements in return for gag orders and the story disappeared.

Originally Posted by Omnis Dei

Sounds like we agree

Unfortunately that was sarcasm.

Depressions are what make banks hit the wall. You are looking for top down causes of patterns when they aren't there and underestimating the ubiquitous power of human stupidity.

The clear picture of the crisis is that nobody knew what the fuck they were doing. The mountainous debt web was so complex that the people running the banks were simply going on the assurances of the financial modellers. The financial modellers in turn were relying on hypothetical mathematical treatments of chaotic systems. The banks kept trading more and more debt simply because it seemed to be making them a fuck tonne of money and they were eager to accept assurances that it was somehow different this time.

When the crisis unfolded they were scared as crap. The ex chancellor of the UK said that many of them were actually despondent. And nobody had any way of knowing what would happen. There could have been a run on the banks and a complete financial meltdown. Nobody had the capacity or the motivation to plan this.