yeah..yeah... you got all these people who go "liars loans" and paid way to much for the properties and their kids are borrowing up to the hilt on education loans and those folks are going to "teach" Congress?
1. that's a sweeping generalization. some people did that (note, mostly due to federal programs enabling it) but far more did not.
2. government accounting is a complete sham. they use a cash accounting method that would land any public company CEO in jail.
3. measured by GAAP, the us has not had a balanced budget since eisenhower and current deficits are running at 40% of gdp. note that that is of GDP, not of income. current gaap federal spending and liability accrual is over 3X federal receipts.
try spending 3X what you earn for a decade and see how your finances look. no private citizen could get away with that. you'd be BK.
what happened in subprime looks like careful fiscal probity compared to what the feds are doing. the citizens have backed off their reckless course. the feds are doubling down on it.
"you got all these people who go "liars loans" and paid way to much for the properties and their kids are borrowing up to the hilt on education loans and those folks are going to "teach" Congress?"
Look how Larry The Liberal resists the idea that the federal govt is pissing away too much money.
Hey Larry, not everyone handles their personal finances like the Obama family. That could easily be my daughter in the cartoon.
speaking of "liar loans", was there ever a larger "liar loan" that the us federal government "borrowing" and spending the money that should have been held in trust for social security? what was that $2.5tn?
oh yes, paragons of fiscal probity those feds. no doubtski aboutski.
add in the ponzi scheme aspects of social security and medicare and you have the kind of behavior that would make corzine blush.
Larry G: "you got all these people who go "liars loans" and paid way to much for the properties"
Only a small percentage of homeowners lied to get loans. The only reason their lies were not uncovered is that all incentive to verify their truthfellness had been removed. Who removed such incentives to verify the truth? The federal government when it set up Fannie Mae and Freddie Mac as guarantors of the loans.
Larry G: "their kids are borrowing up to the hilt on education loans"
Again, government action is the only reason students can borrow money for education which will not pay off. Because government guarantees the student loans, their is no incentive for lenders to ensure the loans will ever be repaid by the students.
There are incentives for mortgage and education lenders to not investigate the veracity and soundness of business and education proposals. Those incentives are the cost to investigate claims and to analyze students' career prospects. Once government removed the incentives to investigate - by guaranteeing the loans - the incentives to not investigate triumphed.
Both the mortgage bubble and the education bubble are exactly government creations. So don't try to put this on households, Larry.
Perfect.
ReplyDeleteGood luck kid!
ReplyDeleteyeah..yeah... you got all these people who go "liars loans" and paid way to much for the properties and their kids are borrowing up to the hilt on education loans and those folks are going to "teach" Congress?
ReplyDeleteha ha ha
This comment has been removed by the author.
ReplyDeletelarry-
ReplyDelete1. that's a sweeping generalization. some people did that (note, mostly due to federal programs enabling it) but far more did not.
2. government accounting is a complete sham. they use a cash accounting method that would land any public company CEO in jail.
3. measured by GAAP, the us has not had a balanced budget since eisenhower and current deficits are running at 40% of gdp. note that that is of GDP, not of income. current gaap federal spending and liability accrual is over 3X federal receipts.
try spending 3X what you earn for a decade and see how your finances look. no private citizen could get away with that. you'd be BK.
what happened in subprime looks like careful fiscal probity compared to what the feds are doing. the citizens have backed off their reckless course. the feds are doubling down on it.
"you got all these people who go "liars loans" and paid way to much for the properties and their kids are borrowing up to the hilt on education loans and those folks are going to "teach" Congress?"
ReplyDeleteLook how Larry The Liberal resists the idea that the federal govt is pissing away too much money.
Hey Larry, not everyone handles their personal finances like the Obama family. That could easily be my daughter in the cartoon.
speaking of "liar loans", was there ever a larger "liar loan" that the us federal government "borrowing" and spending the money that should have been held in trust for social security? what was that $2.5tn?
ReplyDeleteoh yes, paragons of fiscal probity those feds. no doubtski aboutski.
add in the ponzi scheme aspects of social security and medicare and you have the kind of behavior that would make corzine blush.
Larry G: "you got all these people who go "liars loans" and paid way to much for the properties"
ReplyDeleteOnly a small percentage of homeowners lied to get loans. The only reason their lies were not uncovered is that all incentive to verify their truthfellness had been removed. Who removed such incentives to verify the truth? The federal government when it set up Fannie Mae and Freddie Mac as guarantors of the loans.
Larry G: "their kids are borrowing up to the hilt on education loans"
Again, government action is the only reason students can borrow money for education which will not pay off. Because government guarantees the student loans, their is no incentive for lenders to ensure the loans will ever be repaid by the students.
There are incentives for mortgage and education lenders to not investigate the veracity and soundness of business and education proposals. Those incentives are the cost to investigate claims and to analyze students' career prospects. Once government removed the incentives to investigate - by guaranteeing the loans - the incentives to not investigate triumphed.
Both the mortgage bubble and the education bubble are exactly government creations. So don't try to put this on households, Larry.
no worries boys. I was just pointing out that Congress is not the only one who can't make responsible financial decisions.
ReplyDeleteno worries larry, we were just pointing out that compared to the us government, even the sub-prime liar loan borrowers look like warren buffet.
ReplyDelete>>> the sub-prime liar loan borrowers look like warren buffet
ReplyDeleteTwo faced assholes?
Yeah, that sounds about right...
:^9