Market Meldown

[senseinobaka]

akuma587 said:

rocketpig said:

akuma587 said:

Come on, you can't blame the Fed for ALL the problems.  Many banks were giving out housing loans to people they know were unlikely to be able to pay them.  The Fed may have lowered those interest rates, but they didn't hold a gun to the loan companies' heads telling them to give loans to unqualified buyers.

And people who bought into the housing bubble are equally to blame.

 

Oh, the banks had their hand in this, too.

When I found out about the unconfirmed loans that were handed out, I almost shit myself.

It pisses me off to see them all get bailed out like this. I know it has to be done but fuck, we're really getting screwed here.

Yeah, well I mean we are faced with two shitty alternatives, let the market correct itself and have everyone in the financial sector shit a brick when mass defaults on loans occur, or try to ease the transition by bailing out a bunch of people who in no way shape or form deserve a bailout (especially the idiots who accepted a variable interest rate and now can't pay).

So either way we are pretty screwed, and will be screwed for several months if not years.

 

Both options are not great, but one leads to more problems. We have a situation here where these banks and investment houses have thrived and advocated for a free market. And now that the free market is telling them to go screw themselves, they cry for government help. It doesn't work like that.

Even worse, bailing out businesses that fail causes more problems down they road. To name one, it gives no incentive to correct or fix the problem. To name another, smaller more innovative organizations (read: less corrupt and more responsible) are not given the chance to fill in the gaps, instead they are obstructed by government intervention.