tag:blogger.com,1999:blog-22031270.post6889300810312785179..comments2023-11-03T19:05:08.512+11:00Comments on Harry Clarke: Vignettes on the sub-prime crisisUnknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-22031270.post-15012371725279148862007-12-27T01:03:00.000+11:002007-12-27T01:03:00.000+11:00Well perhaps I might accept some notion of informe...Well perhaps I might accept some notion of informed caveat emptor expressed here<BR/>http://www.nytimes.com/2007/12/26/opinion/26barr.html?_r=1&oref=slogin<BR/>As for slack banktuptcy laws allowing crooks and shucksters to walk away from their obligations, I'm much more skeptical.<BR/><BR/>As for the $500bill in US finace sector losses, I'm extremely skeptical that would ever be the case if lenders were lending real savings rather than the funny money pumped out by central banks over the last decade. If money was actually increasing in value, say by 1-2% p.a. rather than the other way round customarily, it's hard to imagine savers being so blase' about who they lend to, or who they give it to to lend out and as such the giant pyramid scheme would never have got off the ground IMO.<BR/>observaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-6016629709285755692007-12-26T12:34:00.000+11:002007-12-26T12:34:00.000+11:00The American law that home owners can walk away fr...The American law that home owners can walk away from their home without additional debt is an excellent one. Australia should copy it. It's a shame the USA unjustly restricted consumers' right to declare bankruptcy, though.<BR/><BR/>Lenient bankruptcy laws are a good response to bad lending practices.kipwatsonhttps://www.blogger.com/profile/15570009917672909788noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-66405648017986043612007-12-23T22:42:00.000+11:002007-12-23T22:42:00.000+11:00Observa, As I have discussed before with you I agr...Observa, As I have discussed before with you I agree that the loose money thing is an issue but not sure it drove the crazy lending policies.<BR/><BR/>Is <I>caveat emptor</I> plausible when the US finance sector faces $500b in losses? <BR/><BR/>In credit constrained lending markets it was unnecessary for the borrower to take care but in free markets where people will lend anything at the going rate there is a problem. Partly people borrowed too much because they forgot about the possibility of macroeconomic instability.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-11977726264805514742007-12-23T20:13:00.000+11:002007-12-23T20:13:00.000+11:00Habib squares the ledger, but Hicks still leaves t...Habib squares the ledger, but Hicks still leaves the experts here well behind, but as Harry points out, if Haneef was a bikie you'd all be happy with Rann stripping him of his colours and paraphernalia and locking him up for flouting SA's new bikie laws and then sending him packing.<BR/><BR/>Back to the topic at hand. We don't need nanny state laws to protect lenders and borrowers, but only need caveat emptor, providing our central banks don't kickstart these giant pyramid schemes by rolling the printing presses. What did they expect the finance sector to do with all that cheap money, other than go looking for more and more dodgy risks to find a home for it all?<BR/>ObservaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-11343741281460708452007-12-22T11:40:00.000+11:002007-12-22T11:40:00.000+11:00Our Arry thinks cousins should be locked up if ano...Our Arry thinks cousins should be locked up if another has committed a crime.<BR/><BR/>It is a shame our Arry is not a conservativeBring Back CL's bloghttps://www.blogger.com/profile/07942981883207494526noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-72236075819076687652007-12-21T18:13:00.000+11:002007-12-21T18:13:00.000+11:00Harry, happy Christmas and best wishes for the new...Harry, happy Christmas and best wishes for the new year.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-24310159573429252882007-12-21T17:31:00.000+11:002007-12-21T17:31:00.000+11:00Shlomo, Spiros - compliments of the season - I'll ...Shlomo, Spiros - compliments of the season - I'll wait to read the judgment. My view was that Kevin Andrews acted appropriately under the Migration Act.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-60782207985737888302007-12-21T15:24:00.000+11:002007-12-21T15:24:00.000+11:00Come off it Shlomo. Just because four federal cour...Come off it Shlomo. Just because four federal court judges have said that Andrews had no grounds to cancel Haneef's via doesn't mean that Andrews had no grounds to cancel Haneef's visa.<BR/><BR/>And, FFS, Haneef is, at this very moment, in Mecca, doing the Hajj. That proves he is a communist terrorist, sorry, Muslim terrorist who if there was any in justice in the world would be in Guantanamo Bay having his genitals bitten off by a large dog, with rabies.<BR/><BR/>Just ask Harry.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-38902212081564610952007-12-21T14:04:00.000+11:002007-12-21T14:04:00.000+11:00Very interesting, Harry. But more interesting is H...Very interesting, Harry. But more interesting is Haneef has been given his visa back. There was no basis in law for it being suspended. Given your fervent support for an action many saw as pre-election hate mongering, your reading public would like to see your response. Perhaps a big heaped serving of humble pie?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-68335960534482142492007-12-21T11:48:00.000+11:002007-12-21T11:48:00.000+11:00Walking away is a less attractive option in Austra...Walking away is a less attractive option in Australia, because lenders can go after defaulters for any shortfall after they've sold up their house.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-16789434844821759922007-12-21T09:30:00.000+11:002007-12-21T09:30:00.000+11:00the major problem now is the prime market where p...the major problem now is the prime market where people are walking away frorm their homes NOT because of changing interest rates but because of falling homr prices and they have further to go.<BR/><BR/>Great video on both caculated risk and on Mankiw's blogs showing KRuggers talking about this. goes for 50 minutes but well worthwhileBring Back CL's bloghttps://www.blogger.com/profile/07942981883207494526noreply@blogger.com