But they that wait upon the Lord shall renew their strength. They shall mount up with wings as eagles. They shall run and not be weary. They shall walk and not faint. Isaiah 40.31
Monday, March 17, 2008
Back to the Days of the Depression?
Tent cities in Los Angeles?!? Yep, watch this report from the BBC.
3 comments:
Anonymous
said...
Correct me if I'm wrong, but isn't the main difference between the Depression and now is that people today are buying homes they couldn't afford in the first place? I'm speaking in very broad terms here, but much of the sub-prime mess is cause by people being fiscally irresponsible while working hard. Namely by getting 5 year ARM's with massive balloon payments and interest only amortization schedules. The result might be the same as the Depression, but is the cause different? I'm not trying to be insensitive, just trying to determine if the cause of both examples is the same or different.
Hmm, I thought that one of the reasons for the mass exodus of people away from their homes during the depression was that the banks had overextended their lines of credit, and repossessed land when the occupants fell on hard times and could no longer pay the banks...
I really feel for those people. There are a lot of Americans who are a lost-job away from being in the same position.
I think Hannah is correct here (well, you're both correct). People did accept the easy credit doled out by Alan Greenspan through the banks. This led to banks giving people loans that they never should have qualified for (known in the industry as "liars loans"). The result is what we see here, people who couldn't afford the homes that the banks allowed them to buy, now homeless.
This is why I have little sympathy for the investment banks! Though apparently the Fed as much more sympathy than I do, since they are bailing out the banks, but not the individuals.
3 comments:
Correct me if I'm wrong, but isn't the main difference between the Depression and now is that people today are buying homes they couldn't afford in the first place? I'm speaking in very broad terms here, but much of the sub-prime mess is cause by people being fiscally irresponsible while working hard. Namely by getting 5 year ARM's with massive balloon payments and interest only amortization schedules. The result might be the same as the Depression, but is the cause different? I'm not trying to be insensitive, just trying to determine if the cause of both examples is the same or different.
Hmm, I thought that one of the reasons for the mass exodus of people away from their homes during the depression was that the banks had overextended their lines of credit, and repossessed land when the occupants fell on hard times and could no longer pay the banks...
I really feel for those people. There are a lot of Americans who are a lost-job away from being in the same position.
Why isn't American news reporting on this?
I think Hannah is correct here (well, you're both correct). People did accept the easy credit doled out by Alan Greenspan through the banks. This led to banks giving people loans that they never should have qualified for (known in the industry as "liars loans"). The result is what we see here, people who couldn't afford the homes that the banks allowed them to buy, now homeless.
This is why I have little sympathy for the investment banks! Though apparently the Fed as much more sympathy than I do, since they are bailing out the banks, but not the individuals.
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