tag:blogger.com,1999:blog-14963913.post1696373477562997882..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: Damned If You Do, Damned If You Don'tKid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-14963913.post-41076728721274920172009-12-17T11:03:25.595-05:002009-12-17T11:03:25.595-05:00Banks do have to be more careful when lending, so ...Banks do have to be more careful when lending, so that it shouldn't end up in a cycle, and become even worse off. However being more careful doesn't necessarily mean to cut off all lending. True most people that are creditworthy don't want to borrow, but there still are small businesses that do have a good business plan, and have a good credit, that need loans due to the crisis. With a good game plan there are ways to be able to avoid defaulting on your loans.JeffShttp://www.fastupfront.comnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-69216064781260774882009-12-15T18:59:14.660-05:002009-12-15T18:59:14.660-05:00Indeed. Those who are creditworthy don't want...Indeed. Those who are creditworthy don't want to borrow. And those who want to borrow, aren't creditworthy.<br /><br />(generalized, of course)<br /><br />These people are so bloody stupid it's amazing. If the mainstream economics theories and practices aren't fully and soundly discredited by the time this thing is over there's just no justice. <br /><br />Of course it all boils down to political expediency and pandering to the shortsighted voters. <br /><br />They're running through the forest, reacting to the brush 2 feet ahead of them, as they barrel (once again) towards the cliff ahead. Meanwhile those who have climbed up to see the forest for the trees are dismissed as crazy, while we watch these fools self destruct.<br /><br />It's maddening.Onlookerhttps://www.blogger.com/profile/07742157936955263465noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-84409815509501775692009-12-15T18:24:48.776-05:002009-12-15T18:24:48.776-05:00Glad I am not the only one confused by the "l...Glad I am not the only one confused by the "lend your way out of bad debt" line of thought.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-40950744057184887242009-12-15T14:48:31.082-05:002009-12-15T14:48:31.082-05:00yes, Anon - that's a good point - BUT, mortgag...yes, Anon - that's a good point - BUT, mortgage rates are so low because the gov't is artificially suppressing rates by buying mortgages - in other words, the banks don't have to hold the mortgages (with low rates) on their books - they offload them to Fannie, Freddie, and the Fed...Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-60613963173259002142009-12-15T13:11:30.308-05:002009-12-15T13:11:30.308-05:00Its not the case where we've told the cleanup ...Its not the case where we've told the cleanup hitter to "hit more home runs, but strike out less often".<br /><br />Rather, since mortgage rates are so low, the case is, "hit more home runs, but when you strike out, we're going to reduce your salary".<br /><br />The banks would be willing to lend more if the profit margins were better. If the returns on the performing loans did cover the losses on the lost loans.<br /><br />Why loan for 30 years to a home owner, when you can buy T-bonds that pay nearly the same thing, risk free?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-40166158779069048112009-12-15T11:53:11.442-05:002009-12-15T11:53:11.442-05:00risk-raking?
ruh rohrisk-raking?<br /><br />ruh rohAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-20245794977740330072009-12-15T07:46:59.483-05:002009-12-15T07:46:59.483-05:00another thing i forgot to mention in the post is t...another thing i forgot to mention in the post is that perhaps a reason banks are not lending is because they are more realistic about the ACTUAL economic situation and they realize how bad it is - despite the never ending stream of optimism spewing from the Financial Powers That BeKid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.com