Given that it's impossible to know anything about anything having to do with the economy, I have a long term vision (don't stop reading) on the whole bailout/financial crisis fiasco. I just read Hayek's Prophetic Skepticism in The New Criterion and I'm starting The Road to Serfdom after I get done with this post.
So, the government created the bubble by forcing banks to finance houses (the American dream apparently) for low-income (black) people; lending went awry faster than you could say, "I want prime to be me too." -> "Can't make a ho a housewife" -> yada, yada, yada -> a bunch of houses sit around with no one paying for them -> banks have huge debts -> can't lend anything to anyone anymore..... Enter: tax-collector.
First, the fraud of considering owning a home the quintessential American Dream. COMAWN! Ok, having your own place to live is a worthy accomplishment (void when awarded), but most of the houses we're talking about are suburban crap-houses for the gullible inner-city folk, and the ridiculous spec/vacation houses built after non-subprime or 'prime' borrowers got involved in the racket.
Second, how silly it is to use home ownership as a basis for a life well-fulfilled. I don't think THAT even exists in Black Liberation Theology, but I'm probably wrong. The people responsible HAD to know they were providing a mirage --double wamey.
Finally, the establishment of this idea of home-ownership being the fruition of the American dream comes at an amazingly bad time. From here on out the suburbs will be on the decline. Energy prices will put an end to suburbs the way we know them as Gary and I know from Kunstler.
Which all brings me back to the financial crisis. They are pumping a gabazoolian dollars into the housing market that is destined for failure for multiple reasons. The free market didn't cause the crisis, the artificially created housing market did. Bailout = Bubble Blowing.
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yes, I do feel better after that....
ReplyDeleteSilly black people.
ReplyDeleteI'll throw this out as well to add another view.
ReplyDeleteMcClatchy, eh? Well god knows we need SOMEONE to speak truth to power. Good for them! Anyway, that article is silly. The government created the MARKET, the private sector made the loads, of course. And that isn't "another take," it's a refutation, if you believe it. Both can be wrong, but both can't be right. Which one do you believe? Care to offer your take?
ReplyDeleteThat article is the greatest example of smoke and mirrors I've ever seen.
Silly black people is right. That's what I think because I'm a racist.
Forgot this: City Journals expose
ReplyDeletehttp://www.city-journal.org/2008/selected_articles-wall_street.html
I just can't get over the idiocy or mendacity (can't tell which) of that article.
ReplyDelete"encouraging lower-income Americans to become homeowners gave unsophisticated borrowers and unscrupulous lenders and mortgage brokers more chances to turn dreams of homeownership in nightmares."
Now who the hell do you think encouraged them!?!?!? For one, ACORN did, btw...
Also the percentage of lending that was subprime doesn't matter. When a small percentages of loans default the ENTIRE SYSTEM collapses. That's why banks never lent to those people in the past.
"Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent"
The securities and CDO's or whatever the cockamamey financial "instruments" they came up with were sold overseas! Hence, the worldwide meltdown.
"unregulated players in the private sector who weakened lending standards" ~absolute rubbish
It would take me a day to pull out all the raging bullshit I see in that article.
McCain is on your side though Hellcat... Granted he doesn't know anything about economics, as he's said.
ReplyDelete