apppro

Economic Data Showing Signs of Negative Trends

This system did not collapse because of the over valued real estate market. You are right it was (and in some areas still is) over valued, but that didn't bring the financial system down. We've been thru these housing boom and busts before and never did they lead to this depth of financial destruction and despair. Taking down Ambac then Bear then WAMU then Lehmans is what destroyed us. These companies could have survived the real estate debacle, but they could not survive the destruction of the confidence they needed to go on. Real estate may have been the reason things had issues, BUT they were not the CAUSE of this financial mess.
And as far as the over leverage part of your argument - YES I AGREE, but that leverage did NOT have to be taken out of the system overnight as demanded by those very short sellers whom you seem to glorify.
Place the blame where it belongs - not where you want it to be.


On Nov 01 02:17 PM bobdark wrote:

> You blame shorts for the market correction? You think it is realistic
> that people can borrow beyond their means to repay? You think it
> is realistic that real estate prices should go up 20% every year?
> If anybody should be angry it should be the savers who are now watching
> their hard-earned savings get flushed down the government toilet
> by the huge tax burden in order to bail out people who were rediculously
> irresponsible and presumed that they were entitled to wealth through
> speculation instead of the old-fashioned way of working and saving.
>
>
> The bottom line is that this crisis was caused by overleverage and
> rediculous real estate speculation, whether it was pointed out by
> shorts or scholars or not, the system had to collapse. Just be glad
> the shorts were there to buffer the downside, otherwise it would
> have been much worse. In fact, next time around, it will be much
> worse, because America still has not learned the lesson, that it
> is wrong to lie and cheat your way to achieve a lifestyle that is
> beyond a level of income required to sustain it and that eventually
> there are consequences. Some day, there won't be any money left to
> bail out all the irresponsible people unless the government simply
> decides to nationalize everything and eliminate the middle class.
>