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Our financial elite learned nothing from the housing bubble


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2017 Aug 17, 10:59am   15,193 views  73 comments

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http://cepr.net/publications/op-eds-columns/ten-years-after-financial-crisis-our-elites-have-learned-nothing

SeriesTHE BLOGS Ten Years After Financial Crisis Our Elites Have Learned Nothing Dean BakerTruthout, August 14, 2017See article on original siteLast week, I heard BBC announce the 10th anniversary of the beginning of the financial crisis. This is dated to the decision by the French bank BNP Paribas to prohibit withdrawals from two hedge funds that were heavily invested in subprime mortgage backed securities. According to BBC, this was when lending began to freeze and house prices began to fall.The problem with BBC's story is that house prices had already been falling for more than a year. While the nationwide...


#housing

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1   NuttBoxer   2017 Aug 17, 11:33am  

I disagree. They learned they can be as reckless as they want with other people's money, then when it blows up in their faces, they can make us pay for it!

2   joeyjojojunior   2017 Oct 29, 7:12am  

NuttBoxer says
I disagree. They learned they can be as reckless as they want with other people's money, then when it blows up in their faces, they can make us pay for it!


I know we've been over this time and again, and I'm the first in line to prosecute Wall St., but to be fair, the bailout to which you refer cost the US taxpayers basically nothing. It was all loans that have been paid back with interest.

Trump is now in the process of removing all the new legislation that wasn't good enough to begin with, however, so I'm sure Wall St. is laughing at the US investor again.
3   joeyjojojunior   2017 Oct 29, 7:34am  

Sniper says

So you think the whole housing market meltdown didn't cost the taxpayers nothing?


Troll somewhere else please. That's obviously not what I said.
4   anotheraccount   2017 Oct 29, 8:40am  

Sniper says
YOU responded to Nuttboxer with one of YOUR ridiculous, party line, nonsense comments, so who's the REAL troll here?


That's the problem with Democtrats. Many of them believe that the bailout did not cost anything.
5   Strategist   2017 Oct 29, 8:50am  

anotheraccount says

That's the problem with Democtrats. Many of them believe that the bailout did not cost anything.


It was the most expensive bailout ever. Banking was screwed, real estate was screwed, insurance companies were screwed. It was a miracle we even prevented a depression. Sure, another recession will along, but I doubt if it will be at this magnitude in our lifetime.
6   Strategist   2017 Oct 29, 8:55am  

oil says
https://www.cnbc.com/2017/07/03/marc-faber-there-will-be-another-massive-financial-crisis-in-my-lifetime.html


Faber said the Dow would go down by 50% when it was at 12,000. Instead it goes up by 100%. Those who took his advise are probably sorry as hell. Nevertheless, the entertainment value Faber brings to Wall Street is unprecedented.
7   anonymous   2017 Oct 29, 8:59am  

anotheraccount says
That's the problem with Democtrats. Many of them believe that the bailout did not cost anything.


You're talking about the Republican bailout of 2008?
8   anonymous   2017 Oct 29, 9:00am  

joeyjojojunior says
NuttBoxer says
I disagree. They learned they can be as reckless as they want with other people's money, then when it blows up in their faces, they can make us pay for it!


I know we've been over this time and again, and I'm the first in line to prosecute Wall St., but to be fair, the bailout to which you refer cost the US taxpayers basically nothing. It was all loans that have been paid back with interest.

Trump is now in the process of removing all the new legislation that wasn't good enough to begin with, however, so I'm sure Wall St. is laughing at the US investor again.


Yes, it was paid back with printed dollars, and if you want to buy a home in the Bay Area, now costs more than it did prior to the bailout.
9   joeyjojojunior   2017 Oct 29, 9:16am  

Strategist says
It was the most expensive bailout ever.


OK, please detail the costs then.
10   joeyjojojunior   2017 Oct 29, 9:18am  

anon_69258 says

Yes, it was paid back with printed dollars, and if you want to buy a home in the Bay Area, now costs more than it did prior to the bailout.


So, the printed dollars that went to bailed out companies somehow only ended up in the Bay Area? How exactly did that happen?

Very, very few of the bailed out companies are located anywhere near the Bay Area.
11   joeyjojojunior   2017 Oct 29, 9:19am  

anotheraccount says

That's the problem with Democtrats. Many of them believe that the bailout did not cost anything.


Maybe you can do it.. Please detail the costs
12   NuttBoxer   2017 Oct 29, 9:24am  

joeyjojojunior says
the bailout to which you refer cost the US taxpayers basically nothing

Sniper says
So you think the whole housing market meltdown didn't cost the taxpayers nothing?

joeyjojojunior says
That's obviously not what I said.
13   joeyjojojunior   2017 Oct 29, 9:26am  

Yep--

"bailout" does not equal "whole housing market meltdown"

The meltdown cost the taxpayers a shit-ton and should never have happened. It's a great lesson on why regulation is needed.
15   joeyjojojunior   2017 Oct 29, 9:28am  

Strat--

That isn't detailing the bailout costs, it's the costs of the recession.
16   Strategist   2017 Oct 29, 9:31am  

joeyjojojunior says
Strat--

That isn't detailing the bailout costs, it's the costs of the recession.


The bailout costs are part of the recession costs. I don't know if firm figures even exist.
18   joeyjojojunior   2017 Oct 29, 9:46am  

Strategist says

The bailout costs are part of the recession costs. I don't know if firm figures even exist.


Sure, but I was speaking only of the bailout costs. Yes, those do exist and I should have said excluding the auto bailout because that was expensive.

Here is an accounting:

http://www.gao.gov/products/GAO-16-147R
19   joeyjojojunior   2017 Oct 29, 10:23am  

Again--is it that hard to understand the difference between the meltdown and the bailout?

The meltdown CAUSED the bailout. They aren't the same thing.
20   Ceffer   2017 Oct 29, 10:51am  

The OP isn't fair at all. The elite found they could commit financial crimes in the billions, get away with it and even get bailed out by the Gov.

Time for the next foray!
21   anonymous   2017 Oct 30, 2:18am  

The free market punishes irresponsibility. Government rewards it.
22   anonymous   2017 Oct 30, 6:21am  

Every country has the government it deserves.
23   anotheraccount   2017 Oct 30, 7:57am  

joeyjojojunior says
Very, very few of the bailed out companies are located anywhere near the Bay Area.


Bay area companies depend on bailed out enterprises around the world for their business. The world is highly correlated and 14T of QE by all central banks has pushed asset prices higher everywhere.
24   anonymous   2017 Oct 30, 8:00am  

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
25   WineHorror   2017 Oct 30, 8:25am  

joeyjojojunior says
NuttBoxer says
I disagree. They learned they can be as reckless as they want with other people's money, then when it blows up in their faces, they can make us pay for it!


I know we've been over this time and again, and I'm the first in line to prosecute Wall St., but to be fair, the bailout to which you refer cost the US taxpayers basically nothing. It was all loans that have been paid back with interest.

Trump is now in the process of removing all the new legislation that wasn't good enough to begin with, however, so I'm sure Wall St. is laughing at the US investor again.

Really? Who is going to pay the additional 10 Trillion that was added to the national debt because of it?
26   WineHorror   2017 Oct 30, 8:27am  

anon_1a7ec says
Every country has the government it deserves.

Bullshit. Once they have sufficient power, there is nothing the onion people can do about it.
27   joeyjojojunior   2017 Oct 30, 9:04am  

WineHorror says
Really? Who is going to pay the additional 10 Trillion that was added to the national debt because of it?


Can you detail that $10 Trillion and what it was spent on then please. Seeing as the GAO doesn't know about it.
28   anonymous   2017 Oct 30, 9:31am  

No one rules if no one obeys.
29   NuttBoxer   2017 Oct 30, 1:26pm  

joeyjojojunior says
The meltdown cost the taxpayers

How is being a taxpayer relevant to the crash? Everyone made the obvious connection with your statement because the bailout cost trillions in taxes.
30   joeyjojojunior   2017 Oct 30, 1:27pm  

NuttBoxer says
How is being a taxpayer relevant to the crash? Everyone made the obvious connection with your statement because the bailout cost trillions in taxes.


I'm still waiting for anyone to show me the trillions in taxes caused by the bailout. Can you?
31   NuttBoxer   2017 Oct 30, 1:34pm  

JJJ, this is why you got banned from my thread, and need to be banned more often. You stick your foot in your mouth making ridiculous claims, then completely derail the thread attempting to cover up your faux-pas.
32   joeyjojojunior   2017 Oct 30, 1:49pm  

NuttBoxer says
JJJ, this is why you got banned from my thread, and need to be banned more often. You stick your foot in your mouth making ridiculous claims, then completely derail the thread attempting to cover up your faux-pas.


All I ask is that you show me where I'm wrong. I know you like to ban people who dare to question your unsupported statements, but it's far more convincing to show something (anything) that supports your statement.

I've linked to the GAO report detailing the cost of the bailout. There is absolutely not any $10 Trillion cost in there.

I'm waiting for you to link or post ANYTHING that backs up your statement about $10T. Can you?
33   joeyjojojunior   2017 Oct 30, 4:05pm  

Sniper says
Here's the first $ 4.5 Trillion, who is paying that back? You? Or your kids?


Just a bit outside... Nice try though.

This is the assets of the Federal Reserve. No taxes were raised because of the Fed taking on troubled assets. The US debt was not increased because of the Federal Reserve taking on troubled assets.

Care to try again? Maybe you can show me a link where the bailout cost the US taxpayer $10T. I'm guessing we've heard the last of Nuttboxer on this thread.
34   anonymous   2017 Oct 30, 7:06pm  

Sniper says
joeyjojojunior says
I'm waiting for you to link or post ANYTHING that backs up your statement about $10T. Can you?


Here's the first $ 4.5 Trillion, who is paying that back? You? Or your kids?



Someone tell piggy that he posted a chart of assets, not debt.

Who's going to pay back federal reserve assets? The fed could literally throw all that paper into an incinerator with absolutely no ill effects or change to our economy.
35   anonymous   2017 Oct 30, 8:07pm  

Maybe the debt will be paid off by illegal immigrants, technology, a zero percent tax rate, or magic fairy dust, but the reality is that the US debt is increasing constantly, no one cares, and spending more money to reduce the debt will only lead to disaster.

Debt didn't work out too well for Rome, Germany, Japan, Greece, or Zimbabwe.

Those who fail to learn from history are doomed to repeat it.
36   MrMagic   2017 Oct 30, 8:23pm  

anon_7c0c9 says
he posted a chart of assets, not debt.


An asset held by one entity is a debt owed by someone else.
37   Strategist   2017 Oct 30, 8:44pm  

anon_121ac says
Maybe the debt will be paid off by illegal immigrants, technology, a zero percent tax rate, or magic fairy dust, but the reality is that the US debt is increasing constantly, no one cares, and spending more money to reduce the debt will only lead to disaster.

Debt didn't work out too well for Rome, Germany, Japan, Greece, or Zimbabwe.

Those who fail to learn from history are doomed to repeat it.


Relax, it's debt we can afford. The economy is growing too. If there was a real problem, wall street would not be at record highs.
38   Strategist   2017 Oct 30, 9:14pm  

oil says
Think.


I think you are nuts.
39   anonymous   2017 Oct 30, 9:21pm  

When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.
40   joeyjojojunior   2017 Oct 31, 3:47am  

Sniper says
An asset held by one entity is a debt owed by someone else.


That is only the case with accounts receivables. The car that I own is an asset for me and is not a debt owed by anyone.

So, again, I ask--can you show any links or data that illustrate the $10Trillion that the bailout supposedly cost the US taxpayer.

Clearly Nuttboxer has run from this discussion rather than admit he was wrong. Will you do any better?

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