That didn't take long. A $200b infusion to save their banking buddies and all it cost was record low exchange rates, collapsed hedge funds, runaway inflation, and $110 oil. Stupid lending got us here. What insane economic theory says more insane lending will get us out?
16 comments:
This ride is just starting. Keep your seat belt on and your hands inside.
FIRST... to claim top post... thought I'm only SECOND to actually post.
I need a raise. If nothing else, just to keep running in place.
Rob,
Think of it this way. Just one year of 100% inflation makes all those nasty debts only half as bad.
I don't think the lending is supposed to get US out. Or maybe you and I are not part of the US that they are concerned about.
What I want is when these crooks cannot pay to get their toxic waste back, can the US Govt use their rules to enforce payment?
- Use the IRS collection boys to strong arm deadbeats.
- Make deadbeats mortgage owners pay up by putting them into a CCC to plant trees on those fire scorched So Cal hills, or rebuild La and Ms.
Toss rich deadbeats out and turn their McMansions into low income housing. Then move the trailer dwellers still hanging in NOLA to So Cal to live there.
Toss the mortgage deadbeats, discount the houses 60% and offer them to returning vets from the Middle East on VA loans.
Jail the CEOs of the Financal companies for fraud and being SOX noncompliant as they misrepresented the value because of never properly re-valuing before offering to US gov. Then take their bonuses and houses in the Hamptons.
Put the CEO of Bear Sterns in jail with Casey as a cellmate. Break the guy listening to get rich quick pitches 24/7.
Sorry for the anger, but I am sick of paying off morons rich & poor.
I pretty much expected this to happen, but not quite this quickly. It seems the best thing the Fed can do is take a long vacation and let the market work itself out.
@h simpson
Sorry for the anger, but I am sick of paying off morons rich & poor.
So am I.
When did accountability go down the toilet?
I think you are picking up on my angry vibes. Yeah, this is getting pitchfork and torch outrageous. The whole response so far is analogous to this:
Government: "Wow, stupid people are falling out of tall buildings. Here, stand under them to break their fall."
Got a friend who writes tv shows.
Need to get her to pitch a new reality show "Who wants to be Fed Chairman" to Fox TV.
May cut into after hour blogging though.
I am begining to understand how the commies went under so fast. Just need enough morons in charge to have a tipping point.
h.
Yesterdays story in the LA Times about the Los Angeles budget was interesting. Apparently they will need to cut 400-500 million next year. Here come taxes or layoffs. I wonder how well a strike would hold up in today's economic environment?
"Stupid lending got us here. What insane economic theory says more insane lending will get us out?"
Not quite sure I get it. To me "stupid lending" is the kind stuff I saw going on in my neighborhood- loans to people who could afford them- home equity loans for cars and toys, etc. that sort of "stupid lending" has pretty much ended. Are you saying the sort lending the fed just did will in fact trickle/translate down to more "stupid lending" of the type I described anytime soon? I don't think so. I think that sort of lending truly is dead for a generation (whatever that quaint term means these days).
Wh was that type of lending stupid? Consumptive? Backed by overvalued and/or depreciating assets? Exactly.
Rob,
I am confused - could someone explain why bankers and Wall Street refer to Bernanke as "Kristen"?
Rob,
I am confused - could someone explain why bankers and Wall Street refer to Bernanke as "Kristen"?
Rob,
I am confused - could someone explain why bankers and Wall Street refer to Bernanke as "Kristen"?
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