4 ms·

What's the crime? Mortgages? I'm not following you. Some generational wealth theft somehow?

forgetfreeman 2y ago
I'm guessing this is in reference to the first shitheads to decide manufacturing synthetic investment instruments backed by home mortgages was a good idea?
- twoodfin 2y ago
  The article explains why, yes, it was a good idea in the context of the US banking system.
  - forgetfreeman 2y ago
    Definitely a fantastic idea that ended well for all parties. GTFO. It beggars belief that folks would, even for a moment, consider participating in such a naked attempt to whitewash this.
Joel_Mckay 2y ago
Read about Michael Milken and his friends... then reevaluate the context of the flippant hostile responses. There is a valid argument that one can't steal something if it no longer has value son. ;-)
- blackhawkC17 2y ago
  Michael Milken dealt in junk bonds, a.k.a. very high risk bonds knowingly acquired by accredited investors. How does his case relate to mortgages?
  - Joel_Mckay 2y ago
    "Like everything else, it started off with great intentions" https://financialpost.com/financial-times/how-bonds-ate-the-entire-financial-system https://financialpost.com/financial-times/how-bonds-ate-the-...
hkt 2y ago
Generational wealth theft does seem like a fair thing to complain about. Mortgages became a lever: most countries have regulations saying what lending ratios people can have, who is and is not eligible, etc. Want to control inflation over the long run? Raise interest rates and destroy the buying power of a generation. In the UK this is even more flexible, as we tend to only fix our mortgage interest rates for a few years. I gather in the US rates are fixed for the life of the mortgage, or close to it.
- Joel_Mckay 2y ago
  The odd generation of young males still living with their parents after college is enough of a reality check for many. I just find it fascinating people think this is somehow a controversial observation. Of course, I also welcome facts that say everything is fine, because it makes me feel more hopeful about their futures. =3
  - astrange 2y ago
    None of the actual empirical economic data in the US resembles your statement - average household sizes have gone down over time, real incomes have gone up, and Gen Z wealth is doing fine. It is true in the UK but that's simply because 1. the UK economy is doing pretty badly in general 2. you really, really don't build enough new housing. If housing construction was unrestricted it wouldn't matter much what interest rates were at.
    - Joel_Mckay 2y ago
      "None of the actual empirical economic data in the US resembles your statement" Who told you that? My opinions are actually not that relevant here. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3529638/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3529638/ https://www150.statcan.gc.ca/n1/pub/11-008-x/2007004/10311-eng.htm https://www150.statcan.gc.ca/n1/pub/11-008-x/2007004/10311-e... https://fortune.com/2023/01/12/millennials-broken-economy-delay-children-birthrate/ https://fortune.com/2023/01/12/millennials-broken-economy-de... https://www.nytimes.com/2023/02/15/opinion/fertility-decline.html https://www.nytimes.com/2023/02/15/opinion/fertility-decline... https://www.theatlantic.com/family/archive/2021/04/real-reason-young-adults-seem-slow-grow/618733/ https://www.theatlantic.com/family/archive/2021/04/real-reas...

I'm guessing this is in reference to the first shitheads to decide manufacturing synthetic investment instruments backed by home mortgages was a good idea?

twoodfin 2y ago
The article explains why, yes, it was a good idea in the context of the US banking system.
- forgetfreeman 2y ago
  Definitely a fantastic idea that ended well for all parties. GTFO. It beggars belief that folks would, even for a moment, consider participating in such a naked attempt to whitewash this.

Joel_Mckay 2y ago

Read about Michael Milken and his friends... then reevaluate the context of the flippant hostile responses. There is a valid argument that one can't steal something if it no longer has value son. ;-)

blackhawkC17 2y ago
Michael Milken dealt in junk bonds, a.k.a. very high risk bonds knowingly acquired by accredited investors. How does his case relate to mortgages?
- Joel_Mckay 2y ago
  "Like everything else, it started off with great intentions" https://financialpost.com/financial-times/how-bonds-ate-the-entire-financial-system https://financialpost.com/financial-times/how-bonds-ate-the-...

hkt 2y ago

Generational wealth theft does seem like a fair thing to complain about. Mortgages became a lever: most countries have regulations saying what lending ratios people can have, who is and is not eligible, etc. Want to control inflation over the long run? Raise interest rates and destroy the buying power of a generation. In the UK this is even more flexible, as we tend to only fix our mortgage interest rates for a few years. I gather in the US rates are fixed for the life of the mortgage, or close to it.

Joel_Mckay 2y ago
The odd generation of young males still living with their parents after college is enough of a reality check for many. I just find it fascinating people think this is somehow a controversial observation. Of course, I also welcome facts that say everything is fine, because it makes me feel more hopeful about their futures. =3
- astrange 2y ago
  None of the actual empirical economic data in the US resembles your statement - average household sizes have gone down over time, real incomes have gone up, and Gen Z wealth is doing fine. It is true in the UK but that's simply because 1. the UK economy is doing pretty badly in general 2. you really, really don't build enough new housing. If housing construction was unrestricted it wouldn't matter much what interest rates were at.
  - Joel_Mckay 2y ago
    "None of the actual empirical economic data in the US resembles your statement" Who told you that? My opinions are actually not that relevant here. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3529638/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3529638/ https://www150.statcan.gc.ca/n1/pub/11-008-x/2007004/10311-eng.htm https://www150.statcan.gc.ca/n1/pub/11-008-x/2007004/10311-e... https://fortune.com/2023/01/12/millennials-broken-economy-delay-children-birthrate/ https://fortune.com/2023/01/12/millennials-broken-economy-de... https://www.nytimes.com/2023/02/15/opinion/fertility-decline.html https://www.nytimes.com/2023/02/15/opinion/fertility-decline... https://www.theatlantic.com/family/archive/2021/04/real-reason-young-adults-seem-slow-grow/618733/ https://www.theatlantic.com/family/archive/2021/04/real-reas...