So you screwed the world over once, why not try it again?
Think of all the things from your past that you'd like to see make a comeback. Well, the good news is, is that nostalgia seems to be in fashion. We've got Twin Peaks, Bladerunner, subprime mortgages...
...wait...what?
Subprime mortgages! The thing that set in motion a worldwide depression that is still causing misery for millions almost a decade later?
Yep, those totally unvetted and unsecured mortgages are back in vogue, and mortgage brokers are once again making a killing selling houses to people who can't afford it.
Brokers like this village idiot.
From WSJ:
"Brandon Boyd was a high school junior during the financial crisis. Now, the former Calvin Klein salesman is teaching mortgage brokers how to make subprime loans.
Boyd, a 25-year-old account executive at FundLoans in a beach town outside of San Diego, is at the cusp of effort to bring back an army of salespeople who once powered the mortgage industry and, some say, contributed to the housing crisis.
"I knew a mortgage was a loan for a house,” said Boyd, who was recruited by his boss, Jon Maddux, after selling him a Calvin Klein suit at a local outdoor mall. “I came in just a blank slate.”
Oh that's okay, at least he's qualified, he can sell overpriced underpants, he can sell overpriced houses too. He knew a mortgage was a loan for a house. What more do you need to know?
What pissed me off about the 2008 crash, is that no one went to jail, credit default swaps were not banned, Glass-Steagall was not bought back and everyone just carried on as before. Ensuring it will all happen again, several orders of magnitude worse than before. Awesome, well done guys.
So this is why friends ask me if cryptocurrency is risky, I tell them it's not really much more risky than keeping money in the bank. There's no public money left to bail out the "too big to fail" banks, this time they will fail.
I'd rather keep my money in a wallet and risk hacking or an exchange running off with it, and possibly see it increase in value a thousand times over, than leave it all in the bank, gathering zero interest and just waiting for the day when idiots like this decide to blow the world up again with their short-sighted greed.
Ha ha. Yes, all good AND bad things come twice. Monetary policy has a big role in these malinvestments arising. It is always somebody else's money they are gambling with.
At least nobody can say this time they were not warned.
Don't count out the student loan bubble and auto loans as other potential blow up candidates.
It's like watching a train crash in slow motion. It's so obvious it's going to happen all over again, but no-one will ever do anything about it.
There's also massive pension shortfalls to factor in. All we can do is keep money in other places.