My Little President Can't Possibly Be This Stupid

[Netyaroze]

badgenome said:

Netyaroze said:

Haven't read the thread yet but I guess this came up already:

 

What happened back then can not be compared to this. The problem was not giving away credits to the poor but mixing those credits with AAA credits and selling this mixed bag on the international market as super safe AAA Credit package despite of all the duds hidden inside. 

 

If all parties included know the risks, its ok since everyone will operate on that premise.

That only explains why the subprime mortgage crisis triggered a global financial meltdown, but giving people loans they can never afford to pay back is simply a bad idea and doing it again will still create a bubble which must eventually burst (housing market collapse, mass foreclosures, etc., all over again).

Eventually. But it could work out if the economy picks up in those areas. Risky, but its atleast an american risk. Its not a guaranteed failure just a calculated risk.