As We The People take over

You are probably right that this is not the thread to rip into idiot nation -- but the billionaires -- even the scandalous ones -- wouldn't be billionaires if it weren't for idiot nation's inability to control themselves......

Its the billionaires who sell products they know are doomed to fail, but they can earn big-time fees and have a safety net (via their lobbyists and high-powered congressional friends) in government. Explain again who can't control themselves?

 

Both groups -- but only one is powerful enough to get bailed out by the government -- and mostly because we continue to vote into power the one major party, which is the party for and of the elite in this country

 

Don't forget about the evils of regulation.

 

Privatize gains, socialize losses.

 

Living beyond one's means is one of the key lessons Baby Boomers taught younger generations.

Hell, college athletic departments do it, don't they? Building $70 million structures on credit, assuming that, over time, enough donors and ticket hikes will pay for the weight rooms, stadiums, etc.

 

I think what we're all getting at, and simply too scared to say, is that we're ready for good 'ol fashioned communism. This democratic, free market stuff just doesn't work.

Who's with me? LA Times, I see your hand is up.

http://www.latimes.com/news/nationworld/nation/la-na-losingfaith16-2008jul16,0,1516735.story

Americans may be losing faith in free markets
Things are hard all over the financial landscape, and politicians and experts are now looking with favor at more, not less, government involvement in the economy.
By Peter G. Gosselin
Los Angeles Times Staff Writer

July 16, 2008

WASHINGTON — For a generation, most people accepted the idea that the core of what makes America tick was an economy governed by free markets. And whatever combination of goods, services and jobs the market cooked up was presumed to be fine for the nation and for its citizens -- certainly better than government meddling.

No longer.

Spurred by the continued housing crisis, turmoil in financial markets, spiking oil prices, disappearing jobs and shrinking retirement savings, the nation and its political leaders have begun to sour on the notion that the current market system is the key to a fair, stable and efficient society.

 

Not referring to them as idiots, but too many people bought homes without realizing the consequences.

*-Seeing "Zero Down & $350/month and I can have a 2,000sf home" (when in three years, when the 1.5% intro rate goes away and the ARM kicks in, it's going to be $1,000/month, which anyone could have explained to them).
*-Getting into interest-only loans because of the monthly payment and getting upside-down on the house.
*-People that think they can play the system by buying houses on ARMs with introductory 3-year rates and flip the house, continuing to always pay the 3-year rate. They did fine briefly, and then got caught holding the bag when the market tanked, and now they want a bailout. The folks living across the street from my parents were this way. Their house has been vacant for a year now, but they're still holding onto it and trying to sell. A lot of folks just decided to walk away instead of sell and allow the house to be foreclosed upon. To them, walking away and going back to renting for 7 years was "cheaper" than making the monthly payment.

I live in a neighborhood of starter homes. Most of them were sold to people sucking on the teat of ARM financing. In the five years I've lived here, between 5-10 houses in the neighborhood have been foreclosed on. That's about one-third of the neighborhood that apparently had no clue what they were getting into and suddenly was in over its head. Some just chose to walk away from the house.

Five years ago, my wife & I were newlyweds who had been itching to get out of our 900sf apartment and into a house, just so we could get room. Instead of diving right into some crappy ARM, we saved up $6K, put together a down payment on a 30-year fixed-rate, bought a foreclosed home for about 85% of its appraised value, and we're doing pretty well now. But we did a little bit of research ... nothing too earth-shattering, but understanding how an ARM can kill you is something a lot of people don't understand.

Even though economics is required to be taught in high school, a lot of kids by that point aren't paying any attention. And even so, we waste too much time on theories and don't spend enough on basic consumer economics, like how to avoid getting screwed on a loan.

The consumer is culpable here. It would not have been difficult for those folks to get into a 30-year fixed-rate with a 5% down payment and PMI, rather than getting stuck in an ARM.

 

Why weep or slumber America
Land of brave and true
With castles and clothing and food for all
All belongs to you.
Ev'ry man a king, ev'ry man a king,
For you can be a millionaire.
But there's something belonging to others
There's enough for all people to share.
When it's sunny June and December too
Or in the winter time or spring
There'll be peace without end
Ev'ry neighbor a friend,
With ev'ry man a king.