Did you really just say that?
So artificially low interest rates...a distortion of markets will not have any effect on people that do not invest directly in the market?
Could you tell that to folks in 2009 when the housing market was distorted by government induced bubble.
Originally Posted by WTF
Did you really just say that? yeah yous did. how exactly did the Gov induce it? by forcing lenders to be greedy and give mortgage loans to people they knew couldn't afford it? the borrowers knew they couldn't afford either .. aren't ya gonna blame them too??
i call that bad business decisions. you know why Bank of America had to acquire Countrywide Financial yeah? because it was cheaper to do so than not. BofA held so much bad paper from underwriting Countrywide it was dragging them down. if they absorbed Countrywide they could write off far more than if they hadn't.
"Bank of America Home Loans is the mortgage unit of Bank of America. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of United States GDP, a proportion greater than any other single mortgage lender. "
https://en.wikipedia.org/wiki/Bank_o...ica_Home_Loans
so sparky Einstein the cat herder .. how exactly was Countrywide's bad corporate decisions the Gov's fault? we'll wait ..