Comments on: Reward the incompetent… http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/#utm_source=feed&utm_medium=feed&utm_campaign=feed Exploring Finance Wed, 27 Jan 2010 19:46:09 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Ryan http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-89 Ryan Fri, 21 Nov 2008 17:20:23 +0000 http://www.trevorgauntlett.com/?p=339#comment-89 I didn't even qualify for a bail-out check. I didn't even qualify for a bail-out check.

]]> By: Ryan http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-52 Ryan Fri, 21 Nov 2008 16:20:23 +0000 http://www.trevorgauntlett.com/?p=339#comment-52 I didn't even qualify for a bail-out check. I didn't even qualify for a bail-out check.

]]> By: The Gauntlett http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-49 The Gauntlett Wed, 19 Nov 2008 17:10:46 +0000 http://www.trevorgauntlett.com/?p=339#comment-49 Oh right... ! I still have yet to receive my bailout check. Oh right… ! I still have yet to receive my bailout check.

]]> By: Ryan http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-47 Ryan Wed, 19 Nov 2008 17:03:28 +0000 http://www.trevorgauntlett.com/?p=339#comment-47 But selective socialism is great, as long as it benefits me. :) But selective socialism is great, as long as it benefits me. :)

]]> By: The Gauntlett http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-44 The Gauntlett Tue, 18 Nov 2008 18:40:56 +0000 http://www.trevorgauntlett.com/?p=339#comment-44 #2 doesn't set a precedent and continue our march toward destroying any remaining semblance of a free-market economy that our country was founded upon. If those who took on too much risk are being bailed out at our expense to buoy the economy then help out every homeowner including you and me. <br><br>This is selective socialism. Think of all the people who just missed the deadline and already foreclosed or walked away. <br><br>Do I want my property to half in value... no. However, they are throwing buckets of water on a forest fire. Jobs are being lost, the recession is deepening. The people being bailed out have a small disposable income. Even if they have smaller payments what happens if they lose their jobs? They will still go into default. <br><br>Either way housing prices are going to continue to decline. Any look at the Case Schiller index shows how overvalued housing prices have become. Anytime prices (of anything) go to high they eventually correct. Given that this is the largest credit expansion in modern history we are now embarking upon the largest credit contraction in modern history. <br><br>However, the Fed will NOT allow a depression to occur. Eventually once all this free money starts circulating we will have massive inflation which will push prices much higher. Inflation through cheap credit is what got us into this mess. #2 doesn't set a precedent and continue our march toward destroying any remaining semblance of a free-market economy that our country was founded upon. If those who took on too much risk are being bailed out at our expense to buoy the economy then help out every homeowner including you and me.

This is selective socialism. Think of all the people who just missed the deadline and already foreclosed or walked away.

Do I want my property to half in value… no. However, they are throwing buckets of water on a forest fire. Jobs are being lost, the recession is deepening. The people being bailed out have a small disposable income. Even if they have smaller payments what happens if they lose their jobs? They will still go into default.

Either way housing prices are going to continue to decline. Any look at the Case Schiller index shows how overvalued housing prices have become. Anytime prices (of anything) go to high they eventually correct. Given that this is the largest credit expansion in modern history we are now embarking upon the largest credit contraction in modern history.

However, the Fed will NOT allow a depression to occur. Eventually once all this free money starts circulating we will have massive inflation which will push prices much higher. Inflation through cheap credit is what got us into this mess.

]]> By: Ryan http://www.trevorgauntlett.com/2008/11/reward-the-incompetent/comment-page-1/#comment-43 Ryan Tue, 18 Nov 2008 17:35:49 +0000 http://www.trevorgauntlett.com/?p=339#comment-43 What if the choice was between these two options:<br>1. You as the responsible taxpayer cover the bailout and the current value of your condominium stays the same.<br>2. No bailout, but your condominium loses half of its value.<br><br>Maybe #1 costs less than #2? What if the choice was between these two options:
1. You as the responsible taxpayer cover the bailout and the current value of your condominium stays the same.
2. No bailout, but your condominium loses half of its value.

Maybe #1 costs less than #2?

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