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Thread ID: 96949	2009-01-30 00:01:00	Phil Goff - Why Labour are so wrong....	SolMiester (139)	PC World Chat

Post ID	Timestamp	Content	User
743174	2009-01-30 08:20:00	Do all you guys work for the banks? Considering the godawful mess the banks have made worldwide I'm waiting for the dumb-downed edition of "Economics for Dummies" to be published specially for them. Martynz	martynz (5445)
743175	2009-01-30 09:36:00	When you fix a mortgage rate, you take a risk that the rates won't go down for the term you fix for. In fact you take that risk because you think the rates are going to rise. Why should the banks relent just because you have made a bad (in this case) decision? It was your choice to take the risk in the first place! If I put some money on a horse at the TAB, and the horse fails to place in its race, would you expect the TAB to refund your bet?	johcar (6283)
743176	2009-01-30 10:51:00	Funny now everyone hates the bank but when the economy picks up and people want to borrow money they will have to crawl on their knees over broken glass	prefect (6291)
743177	2009-01-30 11:09:00	Wasnt this whole crisis originally caused by the American version of the Labour party forcing banks to lend to people who couldnt pay back the loans (aided by fatcat bankers who thought it would be super to sell this debt on to other countries)?	RusEvo (3572)
743178	2009-01-30 17:26:00	Wasnt this whole crisis originally caused by the American version of the Labour party forcing banks to lend to people who couldnt pay back the loans (aided by fatcat bankers who thought it would be super to sell this debt on to other countries)? The whole crisis was caused by relaxing many of the restrictions put in place after the Great Depression. One of the restrictions was not allowing insurance companies and banks to combine. Relaxing this meant that a lot of very flimsy financial instruments were created that made it look as though there was a lot more capital backing available to a lender (ie: a bank) than was really the case. So credit became easier to get, lending criteria were relaxed and when too many defaulted (sub-prime mortgages) and the securities weren't there - crash (Lehman Brothers Bank etc). The current situation is absolutely the result of not enough government regulation. The market has proven once again that it cannot be left to its own devices.	Deane F (8204)
743179	2009-01-30 23:46:00	The whole crisis was caused by relaxing many of the restrictions put in place after the Great Depression. One of the restrictions was not allowing insurance companies and banks to combine. Relaxing this meant that a lot of very flimsy financial instruments were created that made it look as though there was a lot more capital backing available to a lender (ie: a bank) than was really the case. So credit became easier to get, lending criteria were relaxed and when too many defaulted (sub-prime mortgages) and the securities weren't there - crash (Lehman Brothers Bank etc). The current situation is absolutely the result of not enough government regulation. The market has proven once again that it cannot be left to its own devices. Hardly - I understand that Clinton's administration passed legislation that required lenders to lend to anyone, regardless of their suitability. And the fact that borrowers could walk away from their loans without any consequences paved the way for the 'hell in a handbasket' scenario... The current situation is a direct result of government interference, combined with "fatcat bankers who thought it would be super to sell this debt on to other countries".	johcar (6283)
743180	2009-01-31 01:10:00	Has anyone seen the latest legislation on bankruptcy here?..... Non secured debt up to 40K written off (NAP), walk away and borrow in a year....how is that helping the finance industry?.... Its the consumers that have got as much to blame, spending money that don't have!!	SolMiester (139)
743181	2009-01-31 03:20:00	Hardly - I understand that Clinton's administration passed legislation that required lenders to lend to anyone, regardless of their suitability. And the fact that borrowers could walk away from their loans without any consequences paved the way for the 'hell in a handbasket' scenario... The current situation is a direct result of government interference, combined with "fatcat bankers who thought it would be super to sell this debt on to other countries". The sub prime mortgage crisis in the US is only part of the problem. It is wider in scope than just the US and involves more markets and commodities than just the bursting of the housing bubble in the US.	Deane F (8204)
743182	2009-01-31 03:47:00	Goff is a classic case of knowing better than you what you should do with your money,in other words a socialist. And those that agree with him are tarred with same brush. The type they had in mind when they invented hanging drawing and quartering.	Cicero (40)
743183	2009-01-31 04:06:00	Hardly - I understand that Clinton's administration passed legislation that required lenders to lend to anyone, regardless of their suitability. And the fact that borrowers could walk away from their loans without any consequences paved the way for the 'hell in a handbasket' scenario... The current situation is a direct result of government interference, combined with "fatcat bankers who thought it would be super to sell this debt on to other countries". Both you and Deane make good points, and the current economic crisis is more complex than I can get my head around. As US/European house prices rose - meaning buyers were happy to pay higher prices (ie. they need to look at themselves) - the Government put pressure on banks to make borrowing easy. Same thing in NZ - I can clearly remember Helen Clark telling banks to ease up, and a govt guarantee was introduced for 100% - and even 110% mortgages. It used to be that you could only borrow 75 - 80% of the price of a house. 95% became common in the 2000s. Coupled with this was the other side of the equation - investment of profits. Japanese, Middle Eastern, and Asian entrpreneurs had trillions of dollars from the expanding world economy and oil revenues. That money had to go somewhere and there was enormous pressure on banks to provide attractive investments. Normally the flood of money would have depressed interest rates and 3% would have been an acceptable term deposit/bond. But nope. Some clever person thought up collateralized debt obligations (en.wikipedia.org) CDOs - sub-prime mortgage securities. These were high interest because they represented loans to risky borrowers, but at the same time were based on mortgages and everyone knows that is a solid investment.....right?? Not. :waughh: It worked well while house prices globally continued to climb but nothing goes forever. The fall happened, and here we are.	Winston001 (3612)
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