Quote:
Originally Posted by Paul-Bracq-BMW
Well, that's why the US was at the origin of the GFC with the subprime loans and Australia was the only major economy to have avoided going into recession because of it. The idea of unregulated pure capitalism may have made lots of rich people but at the same time made millions of people poor... Not all government decisions are bad and you have missed the point here. the point is BMW finance approved loans to people who should have been rejected because they were too risky. laws in Australia are made that way to avoid the financial system going down because of such practices. in fact there actually are calls to have investigations into banks doing such practices right now. Nothing wrong with it for the interest of the taxpayers who always have to pay for the bill when things go wrong in a large scale. Exactly what happened in the US with all the borrowing and bailouts ahfter the GFC... One of the reasons the US is in so much debt and Australia not.
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If the government doesn't allow me to waste my money on things I shouldn't buy then I will be better off for it? Some group in the government decides what the people can afford and tells BMW when to give loans and when not to? That's pretty much it?
The U.S. subprime loan problem happened because companies could lend money to people that couldn't afford the loans and then sell them to other companies claiming they were good loans. If they had been required to hold the loans they wouldn't have made the bad loans in the first place. It's self regulating if you have to hold the loans and won't be bailed out.