Comments for The Fed’s role in the Housing Crash of ‘07 at http://www.pacificfreepress.com , comment 1 to 8 out of 8 comments http://www.pacificfreepress.com Tue, 02 Dec 2008 15:32:51 +0100 FeedCreator 1.7.3 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-1161 I understand the Argentine middle class was devastated by the wild machinations of their economy due to the currency crash in 2000. I am wondering if a similar condition awaits the American middle class. It seems that since most Americans use their homes as giant cash machines without ever realizing that there is real, unpaid-for debt which ultimately must be paid (nearly never), or transferred (nearly always--assuming the market is in their favor), that the potential for debt slavery is very high if the market crashes. As noted above however, I cannot imagine banks letting houses sit vacant--it seems they would much rather re-negotiate the terms--in their favor of course, and do so in such a way that the "owner" (if you can call it that) would be grateful to refinance using a 100-year mortgage--debt servitude for all intents and purposes. Or, and also, perhpaps the banking industry would rapidly shrink wiping out all of the smaller banks, leaving the equivalent of a Wal-Mart of banks so to speak, run essentially as a government institution. I think the ultimate losers will be those who simply join the herd mentality of "all is well" which is so pervasive in all bubbles. I for one, avoid all debt, but it requires living completely within my means. My house is small but I have what I need. - a guest Mon, 05 Feb 2007 05:27:27 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-735 Imagine how hard the fed will try to avoid a depression. 30yr rates at 3% to refi bad loans..... you bet! Remember that the best loan a bank can own is one that will never be repaid, but owed forever. Since the banks don't even lend their own money (hence no new money would be created) it's no real sweat to pull offthis feat. Especially with a receptive fed. - a guest Thu, 18 Jan 2007 08:19:44 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-710 Lawrence N., don't be so quick to dismiss the idea that lenders can be irrational. In the late 70s/early '80s huge amounts of money were lent to developing countries, and those loans did not perform. In the mid/late 80s we had the huge S&L crisis, where lenders were giving out money like candy. There is nothing in recent history that suggests bankers really worry about their loan portfolios failing. Your faith in business people behaving in a sober/professional manner at all times is misplaced. - a guest Wed, 17 Jan 2007 07:58:03 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-702 I think wealthy people with power who act out of greed can do loads of damage with no need to conspire, and with no need for a hidden master plan. It's simply a case of unbridled greed backed by immense power resulting in damage to society as a whole. In the long run financial collapse is just as damaging to those who "engineered" it. It's not the brilliance of a few masterminds but the shortsighted ignorance of a few very powerful and greedy people. - a guest Wed, 17 Jan 2007 01:35:21 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-619 But as usual, the author neglects to even attempt to suggest solutions. I can only assume Mr. Whitney researched an incredible amount to publish this. In all of that work, did not one way to slow the impending doom he predicts materialize? On the whole, excellent work, a valiant effort. This is very unlikely though. The countries our loans are due to...we already have military bases in. They can try, but nothing fuels an economy like a war. Best of luck in the upcoming events. I, myself, will be optimistically looking for the rise in the value of gold. Now is the time to invest in a something of true value! - a guest Sat, 13 Jan 2007 09:37:11 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-592 Thoughtful commentary, and important points about the Federal Reserve. Fortunately, a booming economy is also good for the regular people like me, so the rich benefit when the rest of us are benefitting. I find your comments insightful, and you may have a partial point about the rich moving their businesses offshore while the rest of us become debt slaves, but then you've got to explain how the rich benefit when millions of people default on their debt. They will lose too. Perhaps Greenspan didn't have a conspiracy. Maybe he was just trying to avoid the recession of 2000 from getting too bad, so he delayed the necessary recession by reducing interest rates. When he realized the cheap money was flowing to housing and raised rates, he was perplexed that long rates did not respond. Treasury yields remained stubbornly low, because their price is correlated to the excess dollars the Chinese are holding. In the end, the banks will suffer too. I'd like to know how the banks benefit from millions of foreclosures, when they are losing billions or trillions of dollars. - Schahrzad Berkland Tue, 09 Jan 2007 18:12:55 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-582 The war bubble is coming. First we had the technology bubble. Then we had the housing bubble. Next big thing is the war bubble. There's steel to make and metal to cast and planes and tanks and guns to build, and take that line as far as you want -- ad nauseum. - Jimmy Montague Mon, 08 Jan 2007 22:37:58 +0100 http://www.pacificfreepress.com/news/1/614-the-feds-role-in-the-housing-crash-of-07.html#comment-580 From the start your "expert opinion" laced rant reeks of political bias. Do you really think that the banks that lend this money plan on foreclosure? Do you really think that a bank wants to own real property in a depressed market instead of collecting payments from borrowers. Put yourself in that scenario? I can tell you that lenders bend over backwards to keep people from losing their homes. Most people that do go into default do so because they are unwilling to make the lifestyle adjustments neccesary to keep their home. The problem is that everyone wants a champange life on a beer budget. Something has got to give, and people are choosing their cell phones, ipods, bling-bling, MTV...etc over their mortgage. - Lawrence N Mon, 08 Jan 2007 21:00:47 +0100