Wednesday, September 22, 2010

The Bank Bailouts in America and Why They Fuck Us

For those who are unsure of what derivatives are here is a simple explanation:  it is a gamble on debts.  It is the betting between entities on if lent loans will be paid back.  It is like gambling on a horse race in the fact that you don't earn any of the racing money, but you can make bets on it.  The lack of regulations against these loans led them to be widely traded on the loans of houses, and combined with overloaning to people who shouldn't have been taking them out on houses that they couldn't afford.  Then the housing bubble popped and of course with wall street so far up government they got bailed out by us borrowing money from them, and then paying them with it, leaving the government with incredible debt because, of course, the government once again did not do what was in the interests of the people.

25 comments:

  1. They government's always trying to fuck us over.

    ReplyDelete
  2. This comment has been removed by the author.

    ReplyDelete
  3. and this is why i enjoy living in New Zealand!

    ReplyDelete
  4. Great blog, man!

    Hope you`ll check out mine as well.

    ReplyDelete
  5. Everyone thinks they have the answer, but the fact is that nobody has the answer. Nobody can run the economy. Nobody can fix the economy. Nobody can do anything. Interventionism can't possibly make things better, it only ruins things.

    www.mises.org

    ReplyDelete
  6. hmmmm... goood theory; keep them coming!

    ReplyDelete
  7. This comment has been removed by a blog administrator.

    ReplyDelete
  8. Thanks for explaining it in layman terms.

    ReplyDelete
  9. People do stupid shit when they think they can get away with it - loans are a great example.

    ReplyDelete
  10. so despite this whole economic mess that we are in, how do you think we can go about making it better? i know you're not a top government economic advisor but you seem to be passionate about this topic and maybe you have some great ideas.

    ReplyDelete
  11. im doing a finance degree at uni. this is interesting to me

    beck http://r9k.blogspot.com

    ReplyDelete
  12. i think it's collapsing, and that we are screwed

    ReplyDelete
  13. Where's that money now? People are still losing their homes, so what was it for?

    ReplyDelete
  14. Its a circle, debt cures debt. We'll never get out. I wanna move to France -_-

    ReplyDelete
  15. Things are only going to get worse before they'll get better. I'm talking about a complete economic crash; that is the only thing that is going to actually move its ass towards fixing itself.

    ReplyDelete