Well, is this any surprise? George Bush helping out some of his fellow rich friends by attempting to bail out the mortgage industry from its self-created mess. I honestly cannot claim to be surprised. After all, he already saddled taxpayers with a $15 billion dollar bill for the bailout of the airline industry after 9-11. While the rest of the country was morning the loss of thousands, the US airline industry was busy lobbying Bush and his minions for billions in the form of a federal handout. And of course, they got it: at our expense.
And like most things, its monkey see, monkey do. The mortgage industry now seeks this stupid bailout at our expense because of poor investment choices they have made. The calls for the bailout have been more fervent as IndyMac Bank failed. Whats intresting about the IndyMac failure is how despite the fact that the bank is insolvent, there is still plenty of funds to pay the former executives for thier services rendered (i.e. running the bank into the ground) at IndyMac.
For years the mortgage industry has given anyone who can sign a promissory note a loan, many of the products with bloated balloon payments and other such things. Then they are absolutely astounded when folks cant pay for the loans. There is a reason why these people did not qualify for loans under the old rules and it didn’t have anything to do with the color of their skin. It was because they were a bad credit risk.
Then there is the no-so-small issue of real estate appraisers who continueally overvalue real property, causing banks to write loans for far more than a given parcel and structure is worth. While the linked article is a paticularly agregious example, this has been going on for a while. In some areas, appraisers have been able to generate growth in the value of homes north of 10% a year. While it is true that they arent making any more land, the population is not expanding so fast that it warrants the value of homes doubling every decade. Of course, this makes homeowners feel good that thier home is gaining value even as it gets older.Except that it is not real value, its artifically inflated value.
What we ought to do instead is sit back and watch the fireworks as the industry implodes. We should not bail it out. Its not the government’s job to bail out businessmen who make stupid decisions. Nor is it the job of government to compensate for stupidity on the part of home buyers who bough more house than they could afford or bought at prices that failed to reflect the true value. And yes, this would leave alot of people homeless and some investors screwed, but thats fine with me. After all, I bought a modest property that was within my means and properly setup the buying arrangement so that it is owned by a corporation that leases it back to me providing assert protection and personal liability. I shouldn’t have to pay (through taxes) for the stupidity and/or poor choices of others.
scottymck said
Intersting position you are taking here. If one didn’t know better, one might think that you were a Republican or at least a Libertarian. This post has anti-Big Government written all over it.
Blaming George Bush or any Republican for that matter, is a bit irresponsible, however. It was Bill Clinton who signed the repeal of the Glass-Steagall Act in 1999, which opened the doors for banks to once again invest in stocks, bonds and the speculative market. If Glass-Steagall would have remained intact, as it had been since Franklin Roosevelt’s New Deal, banks and mortgage brokers would not have been able to purchase the hedge funds that are chiefly responsible for the collapse of so many of these lending institutions.
I agree that it is ultimately the responsibility of homeowners to purchase homes with prudence and that the mortgage lending industry is also to blame for allowing the purchase of homes with only a signature and a promise as collateral.
Because corporations and the banking industry have invested in so many of these failed mortgage brokers through hedge funds, the consequences of not bailing them out could be devastating. If you have money in a Citibank account, for instance, your money could be at risk when their hedge fund bets are called.
This is a colossal screwup and; although there may be no choice but to bail out these lending institutions, the real issue of re-instating the Glass-Steagall Act needs to be addressed immediately!
Keith said
Hi Scotty,
Thanks for the comment. I don’t really fit any of the political molds anymore. While it is true that I espouse alot of Libertarian attitudes (the right to be left alone, the right to say and do what you want, etc) and despite the fact that I recently carried a card from that party and even held an appointed post in same, the Libertarian’s refusal to do anything about illegal immigration and destructive and just downright evil corporations (see my Wal-Mart post below this one) keeps me from signing onto that party wholeheartedly. I do like their stance on getting rid of wealth redistribution systems and the like. I might have supported the old Republican party but I was not around when it was so I cannot say. But today’s Republican party is about the most corrupt institution America has to offer. Its not even the rich people’s part anymore, its the party that stands for no moral compass. Do whatever feels good at the time regardless of the consequences later. The socialist tendencies of the Democrats keep me well away from that party, though I do find them to be the go-to folks when we need to fight business corruption (not so much these last few years, though) or preserve the right to be gay or abort our children or otherwise locate social tolerance.
missionmom said
Keith, I agree that Bush might not be the brightest bulb on the tree but did you have to call him “Bush the Retard?” As the mom of a special needs child, the word retard is so offensive and demeaning to all people living with a cognitive impairment. I don’t think it’s okay to take away someone’s dignity with a casual remark.
There are probably thousands of other words you could have used in it’s place. Loser? Jackass? Moron? Idiot? I’m sure we could both add to the list.
In any event, I’m sure your intention wasn’t to hurt my child or the millions of others like her by using the word retard, but unforunately that’s what happened.
I’m not trying to take away your right to use the word. Just hoping you could see it through this mom’s eyes.
Many thanks for listening.
Keith said
Hi Mission Mom,
Thanks for your comment. I am sorry that you found the use of that word offensive, though as you suggested, it was not intended as such. The problem I face when I sit down to write anything is that any given word can be taken to apply to someone other than who it was intended for and someone else will find same offensive. If I were to construct my writings so that they would not offend anyone, I would wind up saying nothing – which I do not consider to be a viable option.
As far as Bush goes, I would argue that he had no dignity before I wrote that post and that in fact, he lost his dignity well before he was planted in the oval office. It is not possible to take away what does not exist in the first place. So on that point we disagree, though your point remains valid if we were applying it to another person.
I think part of the problem we are facing in our country is this desire on the part of society to whitewash situations so we can avoid facing them and the realities of them. An example of this manifests itself in We used to call them prisons, now we call them correctional institutions. We used to call them police officers, then law enforcement officers and now we call them peace officers or officers of the peace. And while I know you’re not going to like this next example… we used to call them lunatics or feeble minded, then insane, then mentally ill and now we call them persons with special needs. Somewhere in there were a variety of other terms, one of which was also the term retarded.
Now, before you send me nastygram for that, step back for a second and tell me if you at least understand the problem that this mentality causes. By calling prisons something other than what they are, we allow ourselves to disconnect from what they actually do, that is keep people in cages like animals. So on with the other examples.
The problem we have in society is that people have become so hypersensitive to these terms that it has become impossible to have a conversation about the real issues without first tiptoeing around to make sure we don’t hurt anyone’s feelings. This is a huge barrier to facing and resolving the very real issues that face this country today. For that reason alone, I usually refrain from censoring myself or whitewashing my own thoughts.
One of the greatest freedoms when you publish yourself is the ability to skip the censors and the editor and write what you really mean. And for Bush, I do mean he is a retard. I believe he has more than one defective cell in his brain that causes him to act the way he does. But I don’t think its fair to say that because I used this one word and talked abut someone’s shortcomings that I am somehow intending and/or perpetrating a slam against all people who are challenged in some way.
And this is also unpopular, but how did your daughter come to see this blog post without you being there? Or, if you were there, and found it offensive, why proceed? Were you supervising her internet usage? I don’t know the age involved here, but may I simply suggest – without implying or accusing that you were somehow remiss in your duties as a parent (I know most parents try to do the best they can and I know its a hard job) – that you supervise your child more closely while online?
I understand your point and sympathize with your position – and I really hope that this does not come off as basically me saying “grow a thicker skin” because that’s not intended either. For that matter, I am not really sure what to say to this, I mean, what do I say that is not going to be something other than what you want to hear while at the same time being contrary to my belief and therefore a lie (remind me to pay attention when the teacher talks about run-on sentences if I ever head back to school), but I think that label (and many, many others) are very appropriate for our president.
Thanks,
Keith