Tonight we're gonna party like it's 1929!

[darksumomo]

Here is something I posted over in unfunnybusiness over on JournalFen and decided to share with my flist here on LJ.

Last week, cassildra posted about the federal government's takeover of Fannie Mae and Freddie Mac and how it scared her silly. This weekend, the possible End of Banking As We Know It (tm) continued with the bankruptcy of Lehman Brothers, the

Comments

[taishi]

Ah, the end results of greed.

All these banks hoping to make a quick buck from the clueless American home buyer are now getting what they deserve. They were all hoping to sucker people into ARMs so that in five years they could make huge profits from squeezing the buyers.

Instead they just ended up with buyers who could not afford their mortgage anymore, and homes worth less then the original mortgage.

Perhaps they were hoping they could not afford it, and that prices would continue to go up. They could reposes the home, and sell it again at a higher amount then they did the first time.

I find it amusing that the US government wants to actually help people stay in homes that are worth less then their mortgage. They want the home owners to renegotiate the APR, but not the amount owed.

The end results is a whole crap ton of bad debt. It is actually a lot of wealth that was never there in the first place. So in a sense, people are losing their fake money.

I have been enjoying the show.

[jizai]

It's hilarious just how ridiculous our economy is handled. Hell, it's a freaking enigma our country hasn't collapsed upon itself yet do to financial mistreatment.

[nightingale0]

When it does collapse, I hope it doesn't take any others down with it. One of our biggest banks has significant exposure to Lehman. It really is the end of an era - Although MLC was swallowed by a bank years ago, I never expected to see the demise of Merrill in the US.

Hell freezes over: Greenspan favors a tax increase.

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