Re:The seeds of the next housing crisis have been planted
by narrator on Monday May 09, 2016 @09:00PM
(#11664532)
1. Give a whole bunch of loans out. Profit!
2. Loans pay for houses to be built. Profit!
3. Credit crunch.
4. Take back homes in foreclosure.
5. Fed prints money to buy the defaulted mortgages. Profit!
6. Lend new bailout money to private equity buddies to buy the foreclosed houses. Profit!
7. Rent houses to previous homeowners. Profit!
All this is necessary because banking is the foundation of our economy, the most important sector of our economy and the source of all jobs and growth in our economy. There is no sacrifice too great that our country must endure to save the banks in step 3 as the whole economy revolves around the glorious "doing God's work"[1] cycle detailed above.
2. Loans pay for houses to be built. Profit!
3. Credit crunch.
4. Take back homes in foreclosure.
5. Fed prints money to buy the defaulted mortgages. Profit!
6. Lend new bailout money to private equity buddies to buy the foreclosed houses. Profit!
7. Rent houses to previous homeowners. Profit!
All this is necessary because banking is the foundation of our economy, the most important sector of our economy and the source of all jobs and growth in our economy. There is no sacrifice too great that our country must endure to save the banks in step 3 as the whole economy revolves around the glorious "doing God's work"[1] cycle detailed above.
[1] http://dealbook.nytimes.com/2009/11/09/goldman-chief-says-he...