Comments on: Why Our Economy Collapsed

By: BetterWay

BetterWay — Tue, 03 Mar 2009 03:02:46 +0000

Lets all get out of this boom and bust cycle, lets use our brains and try a new system: See here:

http://www.thezeitgeistmovement.com

By: Dave

Dave — Fri, 30 Jan 2009 03:54:38 +0000

well..seems to be so..i’m glad Obama’s comments on the shameful 18 billion bonus given out for Wall Streets…

But who is actually gaining all of the cash pouring in now? I really wonder…who can explain….

By: workaholic

workaholic — Thu, 29 Jan 2009 06:44:50 +0000

good article. I completely agree with you. I belive that this is just the beginning and there’s more pain left.

By: BoJack454

BoJack454 — Wed, 28 Jan 2009 02:18:51 +0000

People,I don’t believe the bailout even exists.That money is electronicly generated fantasy money

By: smoothe1

smoothe1 — Tue, 27 Jan 2009 17:33:29 +0000

Great article. I feel sorry for the new President. He walked into a sandstorm where it’s just to difficult to see if the decisions he makes now will have lasting positive affects in the future.

By: preperowlifick

preperowlifick — Sun, 25 Jan 2009 05:35:19 +0000

I understand the need for the great bailout but with it should go great accountability. Good writing and thought provoking. Thinking about any facet of banking is almost painful though.

By: Tom

Tom — Sun, 25 Jan 2009 04:38:39 +0000

Mike you are right. There are assets sitting there and nothing being done with them. My wife is a realtor and she told me to put a bid on a bank owned home is a joke. The banks don’t reply for months by that time the buyers pull out. the worst is country wide– WHY SELL THESE ASSETS WITH BAILOUT MONEY THERE? Oh if you check on the percentage differance between offers and mortgage owed it is only 5% to 25% less. Why are these lenders willing to sit on all this real estate when the can pull out 70% to 90% from most of it? The cost every month in losses are far greater then unloading now.

By: Danielle

Danielle — Sun, 25 Jan 2009 04:32:10 +0000

I agree with Lillith. This is pretty much how we got into this position in the 1st place. Producing more money, that has less value. Its a shame is what!

By: denus

denus — Sat, 24 Jan 2009 23:32:54 +0000

very good informative article, well done.

cheers,

denus

By: Guffin Mopes

Guffin Mopes — Sat, 24 Jan 2009 23:13:28 +0000

Hey Mike, you should check out the link to wiki in there (marked "fractional reserve banking".

It explains why the collateral isn't really enough to keep the system's head above water. If the money isn't there, no amount of collateral can prevent at least a short term hiccup in the system.

And nutuba: thanks, you rule.