Saturday, February 9, 2008
Poetic Justice (definied by Wikipedia):
"Poetic justice is a literary device in which virtue is ultimately rewarded or vice punished, often in modern literature by an ironic twist of fate intimately related to the character's own conduct."
Multi-millionaire and philanthropist Warren Buffett once again just tells it like it is:
"It's sort of a little poetic justice, in that the people that brewed this toxic Kool-Aid found themselves drinking a lot of it in the end," he said.
Yet the banks, financial institutions, mortgage lending companies, brokers and realtors would rather that the violins start playing, poor disadvantage souls that they are.
How morally bankrupt do you have to be to support a bullshit economic stimulus package and increased jumbo loan limits when you also know the following is true?:
1.) The U.S. government continues to operate under an unbalanced budget.
2.) The U.S. national debt remains out of control at over US$ 9 trillion!
3.) The U.S. trade defecit is at an all-time high.
4.) The U.S. dollar is less than half it's previous value due to interest rate dives from the Federal Reserve chairman Bernanke.
5.) The average American is already swamped with consumer debt to the tune of $8,000 per head.
6.) The country is at technically still at war.
7.) The U.S. government gets its "money" from the taxes on revenues and income from its citizens and corporations. It also prints money, which it cannot do carelessly without disasterous repercussions (see Weimar Republic of Germany) nationally and globally. The U.S. government is not a building that walks around and does shit. It's the American taxpayer that walk around and do shit and the majority (at least for now) still constitute the American middle-class.
8.) Home prices have been skyrocketing for the last 5 years to unprecedented heights and totally disconnected with fundamentals. Now in 2008 home prices are falling like stones around the country. Millions of Americans followed the market cheerleading of the N.A.R. and its members since 2003 and made use of the recommended risky mortgage instruments (option ARMs, interest onlys, jumbo loans) to "get in now while you still can" and "rates may never be this low again" and "home prices will only go up in the future" sales tactics.
They then threw credit scores, income documents and caution to the wind. All for a chance at riches. All for that fat 6% commission check. All for earning the commission and fees on the signed note. Americans are already holding the bag on what could be a trillion dollar financial disaster.
But no, let's find a way to rescue the housing gamblers and financially inepts that can't read a soup label, let alone a mortgage contract.
It's not enough. More! More! Let's find a way to save the banks and mortgage lenders who ignored proven and sound financial lending safeguards that have been in place and forged into brass plaques since the 1940s. Let's do all we can to help the "fence sitters" in Orange County take out even bigger loans (from $417,000 to now $730,000!) in order to afford the still ridiculous $650,000 asking prices for 3 bedroom, 2.5 bath stucco shitboxes in Lake Forest, Irvine, Laguna Niguel.
Let's convince congress people to dangle even more debt-crack in front of the already debt-engorged American public.
That will save the banks. That will save the livelihood of realtors. That will save the mortgage industry. And won't it just save us all?
Let's do all we can to undermine the American capitalist system by destroying the very tenant of laissez faire. When the markets respond negatively (and naturally) to lack of objective information, overvalued assets and out-and-out fraud, let's do all we can to intervene in an effort to avoid the inevitable!
Somebody will come along and pick up the tab. They just have to.
The United States of America isn't quite dangling by a frayed thread just yet.
Come on everbody! There's plenty of work to do.
You! Grab that telephone! Call your congressmen today!
Better yet, call up someone you don't know in China, India and Europe and pull your best pitches to convince them that America has never been a better place to invest their hard earned cash!
Posted by Markus Arelius at 2/09/2008 07:16:00 AM