Re:U.S. GDP Shrank in Q1 2015
by SturgeonsLaw on Friday May 29, 2015 @11:09PM
(#9628734)
...and the banks ended up with those houses. Which were then packaged up and sold as rental back securities[1]. Rent-seeking in the most literal sense.
1. http://www.bloomberg.com/news/articles/2013-11-06/blackstone...
Re:U.S. GDP Shrank in Q1 2015
by whoisthemachine on Saturday May 30, 2015 @10:11AM
(#9630207)
It's an interesting theory that this was a conspiracy by the banks.
Either way, a lassez faire market naturally forces this type of evolution without proper controls by a governing body. It makes complete sense that profits can be maximized if "consumers" (what the rest of us call people /s) have to continuously pay to use things that they depend on.
And the banks already get a handout with the mortgage tax deduction.
We should have said, listen you fucks, collectively, across the board, you are writing off a massive amount of debt owed. They get money at 0 to negative rates and screw over the public at the same time.
Do banks assume that bailout + people making payments on underwater mortgages is, in the end, more profitable than bailout + lower debt loads and increased spending? An awful lot of people just walked away from their homes and mortgages.