Comments on: Credit Default Swaps, ARMs and Low interest rates: Is this what created the financial boom and bust? http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/ Wed, 17 Aug 2011 05:23:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: muncie birder http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/comment-page-1/#comment-2792 muncie birder Sat, 17 Jan 2009 13:48:34 +0000 http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/#comment-2792 All of the answers so far have been excellent. I have just one thing to add--executive bonuses on Wall St. and at the big banks. These guys racheted up their bonuses by making short term gains knowing they would not be around to suffer the consequences. They took the money and ran--billions--and left the tax payers holding the bag. What a bunch of crooks. All of the answers so far have been excellent. I have just one thing to add–executive bonuses on Wall St. and at the big banks. These guys racheted up their bonuses by making short term gains knowing they would not be around to suffer the consequences. They took the money and ran–billions–and left the tax payers holding the bag. What a bunch of crooks.

]]> By: Buy the Numbers http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/comment-page-1/#comment-2791 Buy the Numbers Thu, 15 Jan 2009 07:40:57 +0000 http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/#comment-2791 I would say too-low interest rates caused the bubble mixed with greed (on wall street and by home buyers) caused the housing bubble. If housing was the fire, then CDSs was the dynamite hidden in the basement. Also, a prevalent feeling of entitlement is the dry wind that has been fanning the flames. People couldn't afford what they wanted, so many just took money out of their homes as Ryan said or bought on credit cards. The massive Debt in America is the big problem, and the housing crisis is only part of it.The problem is pervasive in our society, from credit cards al the way up to the budget deficits and entitlement (Medicare and Social Secirity ) programs. The last 50 years we have been creating debts that e will ahve to pay back during the next 50 years. I would say too-low interest rates caused the bubble mixed with greed (on wall street and by home buyers) caused the housing bubble. If housing was the fire, then CDSs was the dynamite hidden in the basement.

Also, a prevalent feeling of entitlement is the dry wind that has been fanning the flames. People couldn’t afford what they wanted, so many just took money out of their homes as Ryan said or bought on credit cards. The massive Debt in America is the big problem, and the housing crisis is only part of it.The problem is pervasive in our society, from credit cards al the way up to the budget deficits and entitlement (Medicare and Social Secirity ) programs. The last 50 years we have been creating debts that e will ahve to pay back during the next 50 years.

]]> By: burtonxm http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/comment-page-1/#comment-2790 burtonxm Mon, 12 Jan 2009 04:13:12 +0000 http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/#comment-2790 These three things are not inherently bad. They are not physical things, and as such, cannot be the root cause of anything. In fact, they are good and valuable in a lot of ways, IF used in the right manner. However, people misused them, which obviously caused a lot of problems. And people also blame the affects of other things (too much credit card debt, legislation, etc.) on these things, as a means to shift blame. These three things are not inherently bad. They are not physical things, and as such, cannot be the root cause of anything. In fact, they are good and valuable in a lot of ways, IF used in the right manner. However, people misused them, which obviously caused a lot of problems. And people also blame the affects of other things (too much credit card debt, legislation, etc.) on these things, as a means to shift blame.

]]> By: Ryan M http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/comment-page-1/#comment-2789 Ryan M Thu, 08 Jan 2009 18:50:12 +0000 http://raiseyourcreditnow.com/credit-default-swaps-arms-and-low-interest-rates-is-this-what-created-the-financial-boom-and-bust/#comment-2789 Two HUGE factors that you forgot about-----GREED and ENVY. Everyone was looking to make a quick buck with the value of their home, plus everyone and their mother was taking out equity out of their home to remodel their kitchen because all the neighbors were as well. No body seemed to care that prices were getting out of control for a home. They bought under the falicy that home price MUST ALWAYS go up. Two HUGE factors that you forgot about—–GREED and ENVY. Everyone was looking to make a quick buck with the value of their home, plus everyone and their mother was taking out equity out of their home to remodel their kitchen because all the neighbors were as well. No body seemed to care that prices were getting out of control for a home. They bought under the falicy that home price MUST ALWAYS go up.

]]>