SUBSIM Radio Room Forums - View Single Post - Socialist States of America still not learning the lessons

Skybird · 04-08-13, 08:56 AM

We are talking about politicians telling banks not to be so cautious anymore in giving credits to untrustworthy people, but encouraging banks to take higher risks again so that people who cannot afford their own home nevertheless buy one - on tick. The reference to the past trustworthy creditscore from before the crisis - obviously was not good enough to not trigger the crisis. How one can conclude from that that it was a trustworthy standard for credit decisions then, escapes me. The outcome showed that it was not.

Same kind of credit bubble generating. Same procedure as before - just with even more devalued paper-money flying around, and an even bigger state debt.

It will blow up into people's faces once again in some years.

04-08-13, 08:56 AM	#21
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,816 Downloads: 10 Uploads: 0	We are talking about politicians telling banks not to be so cautious anymore in giving credits to untrustworthy people, but encouraging banks to take higher risks again so that people who cannot afford their own home nevertheless buy one - on tick. The reference to the past trustworthy creditscore from before the crisis - obviously was not good enough to not trigger the crisis. How one can conclude from that that it was a trustworthy standard for credit decisions then, escapes me. The outcome showed that it was not. Same kind of credit bubble generating. Same procedure as before - just with even more devalued paper-money flying around, and an even bigger state debt. It will blow up into people's faces once again in some years. __________________ If you feel nuts, consult an expert.