This story is amazing.
It started on September 1st 2008 when one of leprosoruim.ru blog users escorted to school his younger sister and noticed some teacher he found kind of hot. He took a few pictures of her and published them on leprosorium.ru blog, with the following comment:
“Yesterday I took my sister to her 1st grade, then got flu, all the night I felt like a vegetable, now I’m OK, more or less, I can walk… but this is not important, I wanted to ask something: The best school in Butovo, elite, this is her first teacher:” Continue reading →
Yes, let them fail.
These lenders, who were cheating the system with “Bad credit? Not enough income? No problem!” mantra.
These bankers, who were wrongly transforming sub-prime mortgages into prime mortgages (in other words, presenting junk as quality).
…and these house buyers who bought homes with little or almost no way to pay. They knew that they cannot afford to buy a house. They knew that APR will jump and they will not be able to pay it. They were neglecting common sense, they were too greedy or too stupid.
How to fix all this mess? I say, let them fail. All of them.
People need to take responsibility for what they have done. People should pay for their own mistakes. They were hoping to take profits solely, weren’t they? Then why they are not taking losses solely? Let them face consequences of their actions.
Why me and other taxpayers should pay for somebody else mistakes? I don’t want to. Estimation of total bail out cost is close to 1 trillion (some say $700 billion, some say $500 billion, others say one trillion). There are about 130 million individual taxpayers and 110-120 million of them have nothing to do with housing bubble. We will pay 7-8 thousand dollars each.
What would happen if we let them fail?
Certain banks will collapse, but not all. Many houses will be foreclosed, they will lower housing prices to the level it would make sense (simple: if you rent the house it should pay up mortgage and provide enough for maintenance and generate some profit).
Example: house, which you may want to rent for $2000 per month, should have mortgage payment much less than that, about one thousand, which makes the price assuming 30-year mortgage at 8%, about 140 thousand. Many people would argue, that they would prefer to buy a house and pay a thousand per month. Well, after this crisis, surviving banks will not offer “zero-down” mortgages, they will probably ask 20 to 30% down. Most probably, banks will also take into account other debts and they will prefer customers with little or no credit card debt.
Now, ask yourself, how many households will be able to pay about $40 thousand in cash for down payment and have almost no other debts, especially credit card ones? I doubt that could be many. That means, big chunk of nowadays “home-buyers” will not have other than renting option in future.
Let them be responsible for what they have done.
10:10 am, intersection of Lawrence Expwy and Homestead Rd. (Santa Clara)
A coach bus (6-wheeler, creme color), hit 3 cars: Jeep Wrangler, Toyota van and Toyota Matrix; nobody seemed to be injured, however, the bus didn’t stop, crossed intersection on red light and kept going. See picture for details. There was no license plate on the back of the bus.
Continue reading →