4 ms·

It makes perfect sense. Loans are borrowing you need to pay back. If you dont pay back then some honest hardworking person loses his savings. When we ignored t

by tn13 10y ago

It makes perfect sense. Loans are borrowing you need to pay back. If you dont pay back then some honest hardworking person loses his savings. When we ignored the basic laws of economics we had a mortgage crisis and thousands of people lost their savings and jobs.

toomuchtodo 10y ago
Which honest hardworking person shoulders the burden when the federal reserve poofs a billion dollars into existence? Why no outrage over that, but we complain about those who default when the default rate is priced into a financial product's APR and profit margin?
- zo1 10y ago
  > "Why no outage over that" There is plenty of outrage over that and all sorts of other things, just not enough to change the way things are. Too many interests, too-many individuals with their entire lives and mindsets invested in the way things work at the moment. As someone that advocates less state-involvement at all levels, I find it incredibly frustrating to watch day to day things unfolding. Every single facet of our lives is affected and skewed by the state in one way or another. Sometimes in a good, and sometimes in a bad way.
themartorana 10y ago
"...some hardworking person loses their savings" No they don't. Loans are insured against default. Interest rates more than cover extremely low default rates and then some.
- tn13 10y ago
  Clearly you don't understand banking.
  - themartorana 10y ago
    https://en.wikipedia.org/wiki/Credit_default_swap?wprov=sfsi1 https://en.wikipedia.org/wiki/Credit_default_swap?wprov=sfsi... https://en.wikipedia.org/wiki/Collateral_protection_insurance?wprov=sfsi1 https://en.wikipedia.org/wiki/Collateral_protection_insuranc... http://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp http://www.investopedia.com/articles/investing/022416/why-ba... https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008?wprov=sfsi1 https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati... Clearly you spend more time attempting to belittle than understand the conversation.

by tn13 10y ago

toomuchtodo 10y ago

Which honest hardworking person shoulders the burden when the federal reserve poofs a billion dollars into existence? Why no outrage over that, but we complain about those who default when the default rate is priced into a financial product's APR and profit margin?

zo1 10y ago
> "Why no outage over that" There is plenty of outrage over that and all sorts of other things, just not enough to change the way things are. Too many interests, too-many individuals with their entire lives and mindsets invested in the way things work at the moment. As someone that advocates less state-involvement at all levels, I find it incredibly frustrating to watch day to day things unfolding. Every single facet of our lives is affected and skewed by the state in one way or another. Sometimes in a good, and sometimes in a bad way.

themartorana 10y ago

"...some hardworking person loses their savings" No they don't. Loans are insured against default. Interest rates more than cover extremely low default rates and then some.

tn13 10y ago
Clearly you don't understand banking.
- themartorana 10y ago
  https://en.wikipedia.org/wiki/Credit_default_swap?wprov=sfsi1 https://en.wikipedia.org/wiki/Credit_default_swap?wprov=sfsi... https://en.wikipedia.org/wiki/Collateral_protection_insurance?wprov=sfsi1 https://en.wikipedia.org/wiki/Collateral_protection_insuranc... http://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp http://www.investopedia.com/articles/investing/022416/why-ba... https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008?wprov=sfsi1 https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati... Clearly you spend more time attempting to belittle than understand the conversation.