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House Price Crash Forum


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About mdman

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  1. If we do ever get round to lynching bankers (which would be the first step to restoring free markets that allocate capital effectively), his should be the first head on the chopping block
  2. Banks made bad loans. Regulators let them. Banks valued those loans fraudulently on their balance sheets. Regulators let them. Banks packaged those toxic loans and their derivatives and missold them onto suckers. Regulators let them Banks pretended they had more capital than they did using CDS sold by AIG. This allowed bankers to pay themselves bigger bonuses. Regulators let them. Regulators allowed this orgy of fraud partly because bankers bribed them with jobs, and partly because governments relied on ponzi financing created by banks to maintain deficit spending on election promises. Gov
  3. As mentioned before HELOC valuations A Citi banker admitted that they knew 80% of mortgages going into MBS were garbage, but did not disclose this to investors (revealed under Congressional testimony) Fraud is fraud whether or not it is against the law or not. Bankers have subverted the laws against fraud through political lobbying. This began with preventing effective of derivatives (and driving out Brooksley Born). The result was AIG writing CDS it could not possibly cover in event of credit event - a form of insurance fraud US bankers aggressively lobbied Congress in 2009 who then put a
  4. They are crooks. Blatant crooks. The regulators are also crooks. What normal people spent their money on depended on the credit they were extended. That credit was inflated by banks who did this by engaging in massive systemic balance sheet fraud. If they hadn't done that, the credit boom would have been far smaller. Bankers were the criminals. Regulators and politicians were the cops who got paid off by the bankers. All of them deserve lampposts.
  5. That bit I agree with. But there was regulatory capture. Bankers got lawmakers to ignore fraud (starting with the FBI warnings of an epidemic of mortgage fraud in 2004 resulting in Bush reassigning them to fight the 'war on terror') by bribes, donations, lobbying and the promise of future employment. That doesn't alter the fact that they committed fraud. In addition, Wells Fargo laundered money for drug cartels, JPM bribed council officials over an auction (and expropriated money from MF GLobal customers), some banks broke the arms export ban to Iran and all abandoned fiduciary duty to their
  6. You forgot the bit where bankers engaged in balance sheet fraud Bankers bribed governments to allow opaque OTC derivative trading not backed by margin or capital requirements in case of credit event Bank fraud allowed bankers to pay themselves bonuses out of the company that should have been retained as bank capital When the collapse began, bankers engaged in even more fraud and lobbied governments for bailouts and legalisation of their fraud Bankers continue to engage in fraud (such as marking helocs at 100c on the dollar on underwater properties) When a thief continues stealing from m
  7. By this reasoning, it should be perfectly ok for a large group of people to lynch bankers - another example of survival of the fittest. Glad you agree
  8. There is a big difference between these zombie companies and zombie banks - the latter are being propped up by fraud. Zombie banks inflict far more damage to the economy
  9. HL Mencken had the right idea back in the 1930s - the first order of business for a failed bank is to hang its board of directors However, what would have been better would have been a vehement anti-bailout policy for failed banks. Let them collapse, wipe out shareholders, haircuts for bondholders, and guarantee domestic retail deposits only (as they did in Iceland). As it is, the series of policy decisions following bank failure that have resulted in massive wealth transfer from taxpayer to banker while we plunge into Depression means that senior bankers must now pay for their actions with t
  10. Supply and demand of houses has got bugger all to do with house prices. Same goes for land available. Otherwise Bangladesh would be house price king. It's all to do with supply and demand of credit to buy houses.
  11. It's not capitalism when bankrupt banks get bailed out and given the green light to commit ever larger frauds
  12. Not talking about those with suicidal intent, rather those with the honest intent to treat themselves and getting it lethally wrong.
  13. Who are they? The Icelandic people or the private bankers? The World is hooked on debt-fuelled growth. Those who don't pay their debts don't get new loans.
  14. That's quite different to private healthcare markets as we understand them. My criticism was of insurance-based models. I think the flaw with your model is that medico-legal costs are high due to high cost lawsuits, so insurers will demand a highly regulated workforce to insure. The state will demand clinicians carry insurance in case of mistakes/ negligence. And the massive control you see in this market suddenly appears. I'd agree with lifting restrictions on the supply of doctors. There is no private restriction on drugs or treatments, just NHS restrictions. Lifting restrictions on who ca
  15. What kind of free market works in healthcare? The private insurance market most definitely doesn't. As healthcare inflation takes root, insurers increase complexity, co-payments and exclusions. Their corporate goal becomes to identify the healthiest people alive and offer them the most expensive insurance they can. That is not what we want from a healthcare market. The scam has got so monstrous in the USA that Obamacare now mandates healthy people must purchase insurance. It is a straightforward milking of the citizen by corporation and Government - absolutely no free market benefits whatsoev
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