[quote]H factor wrote:
You can’t change stupid people, but it is not stupid people’s job to make sure they can’t get a huge loan. That is the person giving out the loans job. [/quote]
I disagree. If someone wants to package their morning shit and sell it, and someone is dumb enough to buy it, it isn’t government’s place to stop that. It is Darwinism. The world needs less people dumb enough to buy shit anyway.
That said, I have no problems with laws that say the person HAS to tell the truth and advertise their shit, as shit.
See the difference? Your statement has big daddy government taking care of use. Mine has the government forcing honest disclosure, but people making their own choices.
The incentive for banks was returns. The fact the entire shit show crashed pretty much destroyed the incentives.
The incentive for the government was just another bubble propped up by the Fed to placate the economy that is in desperate need of a depression. I know what sounds evil, but you can’t inflate away all the cycles in an economy except growth. Eventually you run out of bubbles to create.
The fed is out of ideas, they can’t just makes rates negative. We’re on a crash course for complete and total global meltdown, worse than the one that gave rise to Hitler. Unless we have some sort of technological ultra breakthrough (development of the viable alternative to the internal combustion engine that doesn’t just transfer the use of fossil fuels like most “smart” cars…) we are straight doomed.
Real estate is going to be worth it’s weight in gold for time eternal. SO the incentive for the average Joe to mortgage a home they can’t afford will never go away.
You’re missing what the problem is/was.
[quote]What type of reform changes do you think need to be made and why?
[/quote]
I have no issue with additional disclosure rules, rules over fed manipulations of the money supply, and rules preventing another bailout.