As the title suggest, since the beginning of the subprime crisis till now along with the collapse of some of the biggest names in the market, amid all these turmoil, somebody got to be benefiting right ? Where has all the money gone ?
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DislikedAs the title suggest, since the beginning of the subprime crisis till now along with the collapse of some of the biggest names in the market, amid all these turmoil, somebody got to be benefiting right ?Ignored
DislikedI'm sure there's been some golden handshakes along the way {conspiracy theorem}, but essentially the money has disappeared into thin air.
Here's why:
1) Person obtains $500,000 loan for a house worth $550,000
2) Value of house drops 30%
3) Person defaults on loan
4) Bank repossesses house
5) Bank sells house for $385,000
Bank is down $125,000. If the person who obtained the loan goes bankrupt, $125,000 is down the gurgler.
Multiply this a few million times and viola, you have a bank that eventually goes belly upIgnored
DislikedIMHO, The same people who print the money and loan it out to our government at interest. The same people who have control over interest rates. The same people who have benefited since they opened their doors to the public.
THE CENTRAL BANKS.Ignored
DislikedWho benefits?
The democrats.
They are getting with with blaming Gramm-Leach-Bliley Act because it deregulates part of the financial industry, but not the part that does loans and no one has challenged them on it.Ignored
DislikedIMHO, The same people who print the money and loan it out to our government at interest.Ignored
DislikedThis is banking and finance 101. Hmm kinda reminds me of how the Bank of England was formed in the first place and who really benefited.Ignored
DislikedThe money has disappeared into thin air because that's where it came from.Ignored
DislikedDon't take my work for it though LOL. Research it, google it, go to the library, talk to people, find out why the central banks were born, who staring them, what they do? You will be surprised to see much of the world economic downfall staring you back in the face.Ignored
DislikedThe money has disappeared into thin air because that's where it came from.
An overpriced housing market is suddenly consolidating and so you get negative equity. People try to re-mortgage (if they are credit worthy) but can't get the house valued at enough to cover the principal amount.
The end result is that what started out as a $200k house is now empty and only worth $140K
The upside (if there is one) is that anyone with cash on the hip can pick-up these houses for a steal, sit on them for a few years and make a killing when things pick up.
Then you get money out of thin air! Bit of a vicious circle really and I expect in 10-15 years we will see the same crisis all over again.Ignored