2002:
200 million a year banker: “Hey, lets give credit to anyone that wants to buy a house, regardless of income or credit. We can sell these loans as securities, and leverage it out 30 to 1.”
Irresponsible buyer: “Wow, I can buy a mansion even though I work at 7-11”
Average taxpayer: “These housing prices are insane. I’m going to keep renting.”
2008:
Irresponsible buyer: “Hey, my 200K house isn’t worth a million dollars now that nobody wants to pay for it. Cya.”
200 million a year banker: “The economy is fucked unless the taxpayers pay for our bad loans.”
George Bush: “Have a trillion dollars.”
Average taxpayer: “WTF?”
4 replies on “Morgage bailout in two paragraphs”
Still complaining about house prices ? haha
he’s not complaining… he’s pointing out the immeasurable moronity of the entire situation. 10 years ago i would’ve said no industry is dumb enough to bury itself and an entire national economy, at least not by making the same mistake over and over.
And I thought this only happened in third world countries.
We had the same scenario here in Mexico, it was called the “FOBAPROA”. Basically, government had to save the banking sector…
@Bill:
They aren’t burying themselves, they are ripping the people off.
Those greedy bastards.