What is Digg?134 Comments
- torched, on 10/10/2007, -3/+40People always ask why the banks and lenders would ever risks doing these type of loans if they knew they were high risk and didn't put any money down. The banks and lenders didn't really care because they were just middle men that processed the loan and the repackaged them and sold them off to foreign investors. The foreign investors were told that real estate would be a 50 year bull market and that they would have a safe long term investment. Now that the real estate bubble is starting to pop those foreign investors are realizing they were given bad and high risk investments and even worse that they were told lies. This causes foreign investors to lose confidence in the United States and that is the most dangerous part of all this. If the dollar crashes there is nothing there to back it up, not gold, silver, oil, agriculture, nothing. The only thing that keeps this economy going is confidence by foreign investors. If there is no confidence the United States than nobody buys our treasury notes because they do not believe we can pay them back. What makes this really bad is when you have well respected guys like Peter Schiff slandered as "un-american" for speaking the truth http://youtube.com/watch?v=D1R3ztkL5-c
- 11Heather, on 10/10/2007, -3/+33Bigger picture is the U.S. being a bad credit risk to the Chinese economy. All China need do is change all its contracts to be denominated in Euros and the dollar would plummet with a global recession resulting. The Terrorism hoax is so George Orwell "1984" - a now stale and overtold joke that some Americans still fall for.
- gcnaddict, on 10/10/2007, -2/+19Can someone tell me why terrorism was over bad credit in the first place? Terrorist attacks in the U.S. are rare, but a good portion of the US population has terrible credit. Hell, even the US government has a bad credit rating right now thanks to Bush.
- fixty, on 10/10/2007, -1/+16I personally believe that U.S. Americans are unable to do so because, uhmmm, some people out there in our nation don't have maps and uh, I believe that our, I, education like such as uh, South Africa, and uh, the Iraq, everywhere like such as, and I believe that they should, uhhh, our education over here in the US should help the US, uh, should help South Africa, it should help the Iraq and the Asian countries so we will be able to build up our future, for our children.
- rhabd0mancer, on 10/10/2007, -3/+16People with bad credit will soon be labeled as "economic terrorists" by the Bush regime.
- JohnFive, on 10/10/2007, -1/+11please enlighten us with your truths.
- 11Heather, on 10/10/2007, -5/+15Amazing that it so many people were so stupid to be duped for so very long, whilst their President stole money from Iraq using troops and a bottomless budget to help his buddies get richer and richer. A shame on anyone who was foolish enough to back the Iraq scam.
- reeder, on 10/10/2007, -10/+19Bad credit, or exploitative banking practices aimed at bilking the American people?
Let's face it, we live in a corrupt, greed driven, corporate controlled society, based on monetary idolatry. - catfish182, on 10/10/2007, -1/+9I have a question for you. Should i be thrown in prision?
I worked for Ameritech for 4 years working to get rid of all my debt so when i would go for a house i could get the one i wanted. Also keep in mind i said 0 debt. and a goood credit history of 4 years establishing myself. Also being a vet and a first time home buyer i had people begging me to go though them.
Then i got hurt on the job. Ameritech stopped paying me. I am serious they would not pay me for periods of 3 months at a time. citing accounting issues they said they would fix it. The union i was in did little to help me also. So i with my 2 kids and wife went back into debt to live. at one point we ended up with no gas, no phone, no cable and electric was soon to be disconnected. My landlord tried to understand as i was always 2 months late if not more. All i was ever told was "we will fix this". i finally decided to settle so i could try to get on with my life and it was for pennies what i needed to break even from 2 years of that *****.
So i should go to jail? cause i am not "responsible?" Thats your fix? i agree that tons of people make stupid ***** choices about credit but don't make a blanket statement that we should go to prison.
Also just in case you were curious i am hoping with some extra work that i can get debt free once again but i don't know if i want to try for a house right now considering. it only took 5 years for me to start to see light again. - dbhaley, on 10/10/2007, -0/+7Great video. I've come to learn that on fox news, always trust the person being ridiculed. I like what Ben Stein had to say, though.
- bsmeteronhigh, on 10/10/2007, -0/+7Oh, heck, those wacky zero principle loans with a balloon payment were genius. You got some numbskull to put down 10% and pay for upgrades on a piece of crap condo/house. Then they basically pay rent and think they're actually buying a house (less likely to trash the place) Then they default when balloon time comes. If the mortgage was backed by the builder (as is often the case) the builder gets the house back ('course they never really let go of it in the first place) , plus the down payment, plus the upgrades. And they can start the process all over again. It's magical.
- smacksaw, on 10/10/2007, -0/+7The thing about credit cards is not that Americans are worse spenders than anyone else - we just have impossible terms. If you look at Islamic countries, they still have credit, but it's vastly different since usury is essentially against Islamic law. A more normal comparison is Australia. While we pay every month, their repayment/billing cycle is double ours, and their interest rates are lower. And guess what? They have VISA, MasterCard and American Express down there and all of those companies are making money JUST FINE. Before, when we were isolated more without the internet, it was hard to find out about these things. But it's like releasing Transformers or a season of 24 in just one country. It's stupid, we can move information around the world instantly. People around the world want things at the same time because they can get it. The sad thing is that we're more concerned with sharing useless garbage that useful information, and the useful information is that credit card issuers could halve their interest rates, cap them at 18% and double our billing cycle and still make inordinate amounts of money.
You have to wonder why they give us such a terrible deal. You don't have to be Oliver Stone to see something fishy there. - dbhaley, on 10/10/2007, -0/+6I don't know why you are getting dugg down. It's pretty true. You buy low, sell high. But as you certainly know, the big question is "Will increased uncertainty in credit markets spill over into other economic sectors?" Wal-mart reported lower than expected profits, some states with higher than average house pirce fallouts show consumption slowing, and so on. It appears as if the the rest of the economy is banging on all cylinders, but slowing down. As is usually the case, things can turn for the worse very quickly. Most bears don't make good investors, but being too bullish can sometimes be regarded as foolish as well.
- inactive, on 10/10/2007, -3/+9Last year it was terrorism - http://digg.com/business_finance/10_Threats_to_the_U_S_Economy
- ziffel, on 10/10/2007, -4/+9I agree with you (thoughI don't like the word "idolatry") - 75% of the general population are sheep, and pretty much just do as they're told, buy what the media sells them, etc. It's the corporations with the power - e.g Newscorp owning such a powerful portion of media control. Exxon says '***** you, $3.00/gal" and what do Americans do? nothing, we pay it and don't change our habits. Virtually every large corporation in this country has as it's main goal to drain every last penny from every last pocket of every last citizen. No amount of wealth is enough for them. I wonder where they think they'll spend their fortunes when they collapse the economy. Greed will destroy us, it's just a matter of time.
- VitriolAndAngst, on 10/10/2007, -0/+5Terrorism was #1? When? After 9/11 it was perhaps 7% effect on the economy for 1 year.
Bad Credit is a problem that was created -- much like the "illegal worker" problem. It's the same damn thing. A bunch of get-rich-quicker, rich people on Wall Street, start selling loans to people who shouldn't really be moving into $300,000 homes -- like the credit cards they give to college students. All sorts of companies hire illegal workers, because its cheaper -- profits all around and million dollar bonuses.
The solution to this problem, is to let those who "benefitted" pay the tab. If I put my hard earned money on the wrong stock -- I can lose it. So let the companies who put money in bad borrowers hands just lose their damn money. The worst thing that can happen is that 12 million people go into foreclosure -- not 4 or 5 companies go bankrupt. It's much easier to fill the gap with more rich people who want to get richer.
And stop acting suprised when another Financial scam, that promises to make 40% year over year growth, goes belly up. You can't make money over the long run by not producing real value. This is the S&L crisis all over again. Pay for the damn thing out of all those bonuses these crooks got last Christmas and call it a day. Crisis averted. - BESTenemy, on 10/10/2007, -2/+7Why pay people good money so that they could make a living, when one can do exact opposite, forcing them to turn to crime, get imprisoned, and then be hired for pennies to do the same jobs for much cheaper? If prisoners have no rights, then the easiest way to bring back slavery is force people to become criminals and then take away their rights "legitimately". Some go and jump off the Golden Gate Bridge when the last paycheck runs out, some become homeless hobos, some start stealing.
- 15charmaxwtf, on 10/10/2007, -0/+5Easy credit is the problem, interest rates being artificially low. In a real market this would never happen because money would need to be mined, not just created out of thin air (which benefits the people who get the money first (the rich) and screws the low and middle classes. The exploitative banking practises stem from the Fed.
- moxley, on 10/10/2007, -2/+7So you can see that bad credit is now being associated with a threat to our economy (read: country) ala terrorism. How long before having bad credit is criminalized?
- brad3378, on 10/10/2007, -0/+5Mainly because it removes the blame from ourselves.
As Americans, we are taught that it is always somebody else's fault.
What is it like in Mexico? - sjbdallas, on 10/10/2007, -3/+8The rich get richer and the poor get poorer. It's the age-old issue of a class of people who have all the money and power while the majority has nothing. There is no difference between today's environment of politics and big business running the country while the peasants (all of us) suffer the consequences. The people who can change the price of fuel don't care about it because they can afford it. The people who can change the housing market don't care because they have 2 or 3 houses. They are kings and queens doing as they please and we are slaves.
- inactive, on 10/10/2007, -1/+6Or we live in a society of bunch of idiots who think being in debt is always the answer. People need to learn to save their money and spend less.
- MasterThief117, on 10/10/2007, -0/+4What about terrorists with bad credit?
- Erectile, on 10/10/2007, -1/+5Another terrorist attack will "fix" this situation in no time.
- Synchro, on 10/10/2007, -0/+4While you are correct, there is more to it. People want what they do not have. Many people think, "I want it now" and damn the consequences. If you work in a coffee shop, most likely you have no business owning a big screen TV. You are not entitled to it. Year ago, when my now wife was a single mom, working in a coffee shop and still living at home, she traded in her perfectly good Ford Taurus on a Ford Explorer with an APR of 16%. 7 years later and we are still paying for that damn thing!!! bugs me to no end. her payments originally were $500 a month and she made maybe $1200 a month total. but she had a nice SUV. that is how many people think. And when you are making that kind of money you cannot do that. Blame it on the banks, fine, but blame the people too. Just because the stranger offers you candy, doesn't mean you should take it.
- dbhaley, on 10/10/2007, -0/+4It's like employing a little monkey to do your bidding for no pay.
- 15charmaxwtf, on 10/10/2007, -0/+4How the ***** can there be a thread on this without mentioning the Fed. Actually, how can they even have a story on it without mentioning the Federal Reserve (OK the mentioned it once but didn't put any weight on it,) where the hell do they think the easy money comes from which encourages people to make bad loans.
- DeFex, on 10/10/2007, -0/+4Fat cats did it to themselves. "ooh lets cut all these peoples wages or outsource them because we only grew 10% last year and need to grow 11% !!1"
now who are they going to suck dry when there is noting left to take? - inactive, on 10/10/2007, -2/+5That's not true.
Do you have any pictures to support your wild theory?
Besides Silverstein said that he pulled building 7.
Who are you trying to fool? - Smight, on 10/10/2007, -1/+4It typically costs the government 2 to 3 times what that person would have made in a year at that job just to keep them imprisoned. So it still ends up with costing the government more, not to mention that since they are not working a regular job they are no longer paying income tax.
A high prison populace is very unsustainable. - spucky, on 10/10/2007, -1/+4As I understand it (and I am no economist), our government is in debt to China. China just needs to call in some of the debt and they could slowly take over our public property and works. I have read a while back about governments (local and federal) selling off stuff like toll bridges to private companies to raise revenue. What if they sold these kinds of things to China government run companies?
Instead of Digging me down for being a moron (Digg me up so the whole world sees that I am a moron), please explain what would happen if they slowly converted debt into property and government works (like our water supply). - jub0r, on 10/10/2007, -0/+3A war with terrorism is a war against an effect. It's like having a war against itchy rashes when you're standing in a field of poison ivy. Trim back the poison ivy a bit and then put the calamine lotion on the rashes. It's a two step process.
- brad3378, on 10/10/2007, -0/+3Good point about the PMI companies. Maybe it's worthless insurance after all?
- YellowStar, on 10/10/2007, -0/+3China has the US by the short and curlies because China owns $1 trillion of US T-bills? Or so I once thought. Why would China jeopardize its $1 trillion jackpot value by making the US dollar worthless? That does not make any sense. The deal we made with China was simple: they get the jobs for their billions of workers, we get the company profits. So far, it's been working out quite good for both parties.
- netant, on 10/10/2007, -0/+3While I am in TOTAL agreement with your position, you also need to realize a lot of people who will be hit, will be people that have pensions and 401Ks, because the sub-primers were able to conceal their liabilities enough for some of the bigger fish to bite. (Such as Bear Sterns.) It then affects the food chain all the way up the line.
The key is not to bailout the greedy scumbags who invested poorly. It is like the S&L crisis, but realize, everybody will lose. - rhabd0mancer, on 10/10/2007, -0/+3I understand that KBR has several "detention camps" that could house debtors.
- FlyingFredCurry, on 10/10/2007, -0/+3"When bad credit is outlawed, only outlaws will have bad credit."
Hmmmm.... - TheLoneHoot, on 10/10/2007, -0/+3Easily said, Roryking, but "caveat emptor" doesn't resonate with 18 year old college freshmen who are offered a Visa card with a free T-shirt.
- inactive, on 10/10/2007, -0/+3You ask me they had it coming, people are stupid to go for a variable interest rate mortgage loan, when rates are at all time lows what direction do you think your adjustable rate is going to go, and banks do it to themselves for even offering such beasts, they deserve what they get, maybe now they will scale back on the predatory lending practices, this situation hurts people with not so good, to bad credit, lots of these people would love to have a house and could easily pay for it, but now no chance. Just like the credit card companies offering people more credit than they should, sure the people are responsible for their actions, but I think credit card companies are equally responsible for giving people to much rope for which to hang themselves by. Then get upset cause people cant pay their bills and petition congress to change bankruptcy laws to make it even harder for people who make a mistake. Bunch of greedy sharks if you ask me.
- inactive, on 10/10/2007, -0/+3NAFTA
What part of outsource don't the Americans understand?
The economy is fixed. - TheLoneHoot, on 10/10/2007, -2/+5Oh... right... "9/11" changed everything - I forgot. 9/11 was responsible for bad lending practices.
"What's in YOUR wallet?" "Why '9/11 funds' of course - to go shopping... it's the only way to fight the terrorists." - SimonGray, on 10/10/2007, -3/+6America is at war with terrorism. America has always been at war with terrorism.
- inactive, on 10/10/2007, -0/+3Yeah, Northern Europe sure is a *****!
Ugly people, bad design and smog-fueled environments without any safety net.
NOT - spikes, on 10/10/2007, -0/+3I know how not having no credit (not bad credit), is like. I been making $52,000 a year for almost a year and still cant get a lousy credit card with a $1000 limit. How can the credit industry improve when they ***** on people like this?
- brad3378, on 10/10/2007, -0/+3Yeah -
fix the economy for the rich anyway. - YellowStar, on 10/10/2007, -0/+3$40 trillion in totally unfunded federal liabilities are due throughout the next 10-20 years based on social security and medicare benefits. In fact those who are paying now into the social security plan are just paying for those currently collecting it. Big cutback on benefits for the seniors? Big tax hikes for boomers and gen-exers? Borrow the money? Or sell Hawaii to pay for the promises and bills?
- djsputnik, on 10/10/2007, -1/+3Bad credit, or exploitative banking practices aimed at bilking the American people, or the desire to possess something that you don't need regardless of the cost? individual responsibility has to come into play some where.
- williamdyer, on 10/10/2007, -0/+2Cops don't catch robbers and burglars. Look at the solution rates. The only ones that get caught get caught because they by chance get pulled over for speeding with a trunk full of TVs and iPods.
- kurtwinter, on 10/10/2007, -0/+2First we must get credit card applications out of colleges. Any "institution" that cares so much for the well being of their student body that they would spend thousands or more on "wellness" should take the credit card offers stuffed in the bags and stuff them up their own asses. What moron would lend a 18yo without a job $1500? Then cry to congress to change the bankruptcy laws when too many people skip on paying it back? Cry me a river, Citi and Chase are the loan sharks of the 21st century.
- YellowStar, on 10/10/2007, -0/+2Anybody who thinks China and India have squeaky clean banking/credit markets should understand that their culture has always been corrupt. China is headed for a monumental credit meltdown someday that will dwarf Japan 1989.
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