Ron Paul on the economy

[Bindare_Dundat]

[Soul Crusher]

He is 100000000% correct.  The banks need to liquidate all the foreclosures at a market rate auction and let them go for whatever the market says the house is worth.

These banks are completely delusional in thinking they have assets that will ever be worth the paper they are written on. 

Propping them up with taxpayer money is just insane.

[Hereford]

I just bought a house that was listed a year ago for $345,000 for $220,000. The bank repeatedly refused offers for almost a year, then eventually had to let it go. The bank guy seemed pissed about it... apparently the bank lost a lot of $$$ on the deal. He kept telling us continually that it was a $300,000 house. I told him apparently not, if I had the high offer at 220.

Out here in Cali they are desperatly trying to keep home prices up. The government wants the 1% tax base, and the banks are trying to not lose their collective asses due to the fact they bought/lended $400,000 for $200,000 houses to people who make $30K a year, and walked off when things got rough.

[Soul Crusher]

I do collection work and have to deal with bankers all the time.  They are some of the most self deluded people I have ever met. 

I have one client who owes 14k on a credit card and wanted to make a deal with mastercard.  She offered to pay 400/mo since she is tapped out and owes a crap load on other cards as well. 

The bank would only go for 7k down, then 700 per month.  When I explained to the banker that if she had 7k in the bank she would not be in this mess, he acted like I was speaking Greek.  He then said fine, let her go Chapter 7. 

This is what you are dealing with in many bankers.  They helped cause this mess and still hold tight to their false thinking in this economy.

These foreclosures need to go to auction and be allowed to sell at whatever they go for.   

[Hereford]

Interesting though, when houses out here go thru foreclosure, you will see houses that went for $300K sold for like 80K. So I wonder if this is the accurate value is a lot of cases. I think in lot of cases the bank is still making $$$.

A lot of times these properties are trashed, but the deviation in prices is amazing.

[Soul Crusher]

Interesting though, when houses out here go thru foreclosure, you will see houses that went for $300K sold for like 80K. So I wonder if this is the accurate value is a lot of cases. I think in lot of cases the bank is still making $$$.

A lot of times these properties are trashed, but the deviation in prices is amazing.

They are losing money, but getting the monthly carrying costs off their backs, such as taxes, insurance, etc. 

The homes were never worth 300k to begin with yet they leveraged themselves off of those inflated "assets."

I truly think we are heading for a massive collapse even worse than people are talking about.  The size and scope of this mess is beyond comprehension.

[Hedgehog]

I do collection work and have to deal with bankers all the time.  They are some of the most self deluded people I have ever met. 

I have one client who owes 14k on a credit card and wanted to make a deal with mastercard.  She offered to pay 400/mo since she is tapped out and owes a crap load on other cards as well. 

The bank would only go for 7k down, then 700 per month.  When I explained to the banker that if she had 7k in the bank she would not be in this mess, he acted like I was speaking Greek.  He then said fine, let her go Chapter 7. 

This is what you are dealing with in many bankers.  They helped cause this mess and still hold tight to their false thinking in this economy.

These foreclosures need to go to auction and be allowed to sell at whatever they go for.   

What a bunch of idits.

They need to bargain any deals they can get.

The better deal they make for their customer, the more likely she will actually be able to come through with the plan.

This just pisses me off. These bankers goes after the little people, give them a hard time, won't cut them any slack.

And send off billions to guys like Madoff.

And then have the balls to ask for hand outs from the government.

The banks are corrupt and this is a good chance to clean up this fcuking mess.

Hopefully the new administration will search out the responsible behind this mess and hang them by their toes.

[Soul Crusher]

What a bunch of idits.

They need to bargain any deals they can get.

The better deal they make for their customer, the more likely she will actually be able to come through with the plan.

This just pisses me off. These bankers goes after the little people, give them a hard time, won't cut them any slack.

And send off billions to guys like Madoff.

And then have the balls to ask for hand outs from the government.

The banks are corrupt and this is a good chance to clean up this fcuking mess.

Hopefully the new administration will search out the responsible behind this mess and hang them by their toes.

No kidding.  The bankers are really the cause of this mess in their gambling, wheeling dealing, and over leveraging.  They need to fail.

I know it will be painful, but what deterrent is there for recklessness if no one is allowed to fail despite even the most aggregious actions like the banks engaged in?

[MuscleMcMannus]

  Blame the bankers?  There is epic collusion between the US Government, banks, corporations, and Wall Street.  It's not simply "bankers".  It's the entire system.  The entire structure of the Federal Reserve.  What banks do you think make up the Federal Reserve?  PRIVATE BANKS AKA Citi, JPMorgan etc.  Look at all the major politicians that have a previous career in "banking and finance".  Come on guys.  what we have is state capitalism or corporatism.  Government and big business are in bed with each other.  It's not just the banks.  It's all the major corporations be it banking, military, et.c  Small business free market capitalism is dead and has been for decades.

[Hedgehog]

  Blame the bankers?  There is epic collusion between the US Government, banks, corporations, and Wall Street.  It's not simply "bankers".  It's the entire system.  The entire structure of the Federal Reserve.  What banks do you think make up the Federal Reserve?  PRIVATE BANKS AKA Citi, JPMorgan etc.  Look at all the major politicians that have a previous career in "banking and finance".  Come on guys.  what we have is state capitalism or corporatism.  Government and big business are in bed with each other.  It's not just the banks.  It's all the major corporations be it banking, military, et.c  Small business free market capitalism is dead and has been for decades.

Good post.
I think there is no harm in having very strictly regulated banking.
The reason that we need banks are for investments and securities.