Thread: subprime - it takes a cartoon to understand this stuff...

. .oh shit . .no icon to demonstrate that someone die of humor here..piece of animation.

Originally Posted by ;

One of the things I always try to keep in mind is that economics is in fact very simple. In order for individuals to live, we have to turn natural resources into useful stuff. But then we consume that things, or the stuff gets worn out or damaged from the environment from whence it came, therefore we have to make more stuff. The simplest economy is 1 dude on an island.

Cash is only a handy way to keep an eye on the goods and services we each produce, therefore it becomes easier to exchange those items amongst each other. People who say that our cash is not backed by anything don't quite get it. Look around. All the houses, cars, telephone poles, asphalt roads, Nintendo GameBoys, bottles of Orange Crush and my new hat is exactly what actually backs the cash. Substances backs Cash. That stuff does not have to be shiny and heavy.

Should you loan me $100, you are assuming that I will somehow produce at least $100 worth of worth somewhere in the world which will allow me to pay you back. When the lenders of earth loan a hundred billion dollars to a bunch of debtors, the creditors ought to be basing that decision on the belief that those borrowers are going to have the ability to make at least a hundred billion dollars worth of new products and services on the planet throughout the loan period.

But they F'ed up.

Is it not about risk to reward? If I loaned you 100$ and thought you were risk would I loan you the money? Just and sure allow you to pay 10$ per month for 13 weeks. . What a deal, after all your risk. What should I do if you forget a payment?

That's where they missed the ship. They gave it away to people who could not pay them back. They didn't employ a good risk//benefit program and it bit them in the ass..hehehe

Greed has a means of moving into a whole circle and karma is a bitch. .

The big dogs are in pain and so da fed lowers da rate to save our ass. After all I think a new chief will be in the house soon. What does friends and citigroup do? They increase the attention for all credit card holders to help offset the fuk'ed mess they got... What a joke!!

If reality dis whole country has turned into one huge joke. . The huge dogs could care less. They overlook a qtr and fire 10,000. . If he seen the shit going 14, my grandpa would turn in his grave. .

Originally Posted by ;

have you browse greenspans publication yet? Unbeknownst to me, he had been a fantastic friends with ayn rand and he talks a lot about their relationship in the publication. Personally, I believe it was just friends, but I wont turn this thread into a gossip mag on you guys

Well her huge affair had been with Nathaniel Branden, but who knows? Alan could have been quite the puppy back.

I haven't read Greenspan's book, but I have read a number of brief essays of his from back in the 60's when he had been in the circle. I had been familiar with his work before he became the Fed chairman.

You know how he had a tendency to create those extremely complicated sentences, and the media would constantly talk about Greenspeak or what they called it? His writing wasn't like this at all, and I have a suspicion that he talked that way as kind of a joke that is massive. I am guessing he was making fun of the bureaucrats for many years, but just the Objectivists got the laugh.

GM the stone of America... Well lets buy your bum out and get rid of everybody and hire us a new batch and offer them money... Right superior job guys. This is true American of you... SSecurity is like a 4 letter word in case you work for the big boys. .

Originally Posted by ;

Is it not about risk to reward? If I believed you were high and purchased you 100 $ risk would I loan you the money? Sure and only make you pay 10$ per month for 13 weeks. . What a deal, after all of your risk. What should I do if you miss a payment?

The risk that you're speaking about is the risk that the borrower won't be able to create enough economic worth (by going to work every day, inventing something trendy, writing a bestseller, or anything ), which means that the borrower won't accumulate the vouchers for those activities (which we call money), which means they can not pay back the loan.

Originally Posted by ;

GM the rock of America... Well lets buy your ass out and get rid of everybody and employ us a new batch and offer them less money... Right superior job guys. This is true American of you... SSecurity is like a 4 letter word in case you work for the big boys. .

Do not worry. They'll be out of business and then you'll be rid of these if GM keeps going the way they are. Won't that be GREAT?

Originally Posted by ;

Don't worry. They'll be out of business eventually and then you'll be rid of them if GM keeps going the way they are. Won't that be GREAT?

Watch China within 10 years take over our streets with auto's... markers this post. .