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[wierd]

Lucreomancy is not a parlor trick! It's serious magic!

[Dunamisdeos]

Lucreomancy is not a parlor trick! It's serious magic!

"Lucreomancy is a perfectly valid school of magic, and don't let anyone tell you otherwise."
                           ~Skyrim

[wierd]

Seriously, how else do you transform mountains of toxic debt into mountains of credit?

[Dunamisdeos]

Obviously by clicking a banner ad or calling an infomercial that says it'll lower/raise/erase/triple my credit money debt score.

EDIT: Preferably from a Nigerian agency.

[Dunamisdeos]

So lemme see if I've got this. Basically banks are finding barely-varying ways to get people to give them lots of money (using previously proven-as-disastrous methods as a base) on the premise that there will be a return on that money? And this promise is based on a third party's actions that cannot be predicted in any meaningful way except for the percentage that definitely will not hold up their end?

[Dunamisdeos]

So that's like, what, basically loan shark tactics? I'm sure those are less regulated than bank loans, allowing for all sorts of predatory bullshit to occur. Been there.

[Pavellius]

Is there something I could do to protect myself from a crash?

[Dunamisdeos]

Got it. They don't have any intention of paying back when they take the loan.

How do you protect against that? It's not like you can really tell in the end. Should we be giving less loans out to people, or being more scrupulous with the vetting process?

[Dunamisdeos]

Ah, that makes sense.

Thanks for taking the time to respond and also for providing the reading material.

[Dunamisdeos]

See but to me that sounds less like "forced to" and more like "unwilling to accept less extravagant profit margins".

[Reelya]

Generally it's up to the lender to properly evaluate the person taking out the loan to work out the risk. Generally, the riskier a loan is, the higher the interest rate. This works the same way with the consumer- your credit score is a reflection of how "risky" you are to make a loan to. Bad credit score, high interest rates.

Yeah, and it's exactly these checks that the Bush administration undermined leading up to the property market crash.

See "American Dream Downpayment Act" as one of the programs they enacted. This aloted a stack of money to pay the down payments and closing costs of low-income families to get a home loan, and made a special point of how it would help "minorities". In my opinion the real reason for this was political - if you hook black people in with 30-year mortgages, they're going to be subsceptible to economic fear at the voting booth - i.e. you can get them to vote for Republicans.

I've seen a documentary about it, and what happened was that managers were pressuring the people doing the lending paperwork to "sell sell sell" the low-income / minority home loans, because they didn't want to miss out on their share of the government incentives. Plus all the stuff that was enabled by repealing Glass–Steagall.

[MrRoboto75]

Why do you think rich Chinese are scooping up foreign real estate?

[smjjames]

Well, well, well, Trump got pressured into cancelling the Doral choice for G7, though he's not going to admit it.

[Reelya]

Yes, but that's been going on well before China's economy started to slow (see: Vancouver, whose Chinese-produced housing bubble has persisted for the past 20 years). There's actually been a recent effort by Xi Jinping to drag those who've been hedging their bets back into China.

And China investing in foreign real-estate also doesn't suggest that Chinese real estate isn't solid. Those Chinese people might just be trying to cash in on foreign housing bubbles, because Chinese real estate is more stable (less risk but less profits). People traded dollars for bitcoin a while ago in a mad rush, that didn't imply dollars were on the way out.

[ggamer]

Lately the phrase "I wonder what it would look like; a better world" has been hitting me harder cause it genuinely feels impossible for anyone to affect any sort of lasting change on the political landscape at large. I feel like every day we're inching (or footing, more like it) closer to a threshold where constituent trust in our government hits a point of no return and people just go apeshit. It certainly wouldn't take much, probably the recession/depression we're very obviously going to hit inside five years. Given the ways we've castigated the federal govt in this thread I don't think we'd have to be very creative to figure out the end result.

I wish I could do literally anything about it, but I don't have the means and every second not spent scrounging up influence and connections only widens that gap. Only 23 but I might as well be a 40 year old has been for how much of a chance I have of having any role in the beauracracy. I can't even wish that someone with the means could muster up the ambition to get a nice political coup going, because in the very unlikely event they could pull themselves away from their designated child fucking block of the day to do so they'd just manage to fuck it up. 🙁

My only source of fulfillment left from politics is the kind of schaudenfreude you get from seeing how bad somebody can manage to fuck the dog this time.