Comment by pixl97
4 hours ago
>It's like asking someone if the Fed should raise or lower interest rates.
The answer is they should lower them for me and raise them for you... God, I could get fabulously wealthy that way.
4 hours ago
>It's like asking someone if the Fed should raise or lower interest rates.
The answer is they should lower them for me and raise them for you... God, I could get fabulously wealthy that way.
Right, like imagine if the Fed gave you some sort of preferential access and sweetheart low rates. Then you could borrow money from them at a low rate, lend it out at a higher rate, and profit from the difference. It would be like some sort of modern day alchemy: Creating money from thin air.
Of course, if you become very large and there are widespread delinquencies that threaten your solvency, your chums at the Fed will happily give you infinite liquidity for collateral at sweetheart valuations. Or maybe they'll just start buying up debt in market operations to put you in the black again.
Now, getting this kind of special treatment while mom and pop get foreclosed on their ARM and evicted seems a bit unfair. And, with the help of onerous zoning and permitting codes, it would tend to inflate house prices, with the perverse effect of forcing people to take your loans in order to own a home before your scheme inflates their prices even more--effectively becoming a private tax on home purchases.
That's why we've made this obviously corrupt business illegal.