Posted by
skep41 on Tuesday, October 07, 2008 2:02:36 PM
My
dream job is to be a headline writer for a London tabloid! Think of the
sheer happiness in the heart of the guy who typed that one up!
Meanwhile Mr. Gay USA, Barney Frank, has done the same to the US
banking industry without any corresponding headlines and has handed us
a hefty bill for his gourmet treatment of the economy. The weird thing
about all this is that the whole world 'packaged' these worthless
mortgages and sold them all over the planet. Foreign markets are
crumbling because they were stuffed with 'assets' based on loans given
to people who were collecting unemployment insurance and Food Stamps.
Those bankers might as well have been buying and trading and investing
in piles of old newspapers.
The real estate panic has spread to
Europe. The true assets of most smaller and regional banks are in the
negative because of a weird self-fulfilling psychological twist; if you
think every thing is worth less then it is. The same fantasy that
ascribed value to worthless paper is now denying value to real assets.
Not everyone was so overleveraged that they are on the verge of
bankruptcy.
A lot of this bundled garbage was dumped on our
friends in the oil export biz. Now with oil prices half of what they
were six months ago and headed down our erstwhile desert allies are
standing knee-deep in unsold oil clutching their worthless bundled
mortgages and wondering why they've gone from being on top of the world
to deep crisis in such a short time. As the oil price sinks toward $40
a barrel what are Putin and Chavez going to do? Both of them kicked out
the hated foreign (i.e. efficient) oil companies and now they are
entering a price war with their former OPEC buddies with declining
output and crumbling infrastructures. With investment having fled from
Russian markets because of Putin's stupid aggression in the Caucasus
their only source of income looks like it will be cut by 60-70%. Part
of the reason that the real estate markets crashed was because of the
spike in energy prices engineered by these greedy thugs who didn't
realize that Globalization means
we're all in the same boat. Self-serving, anti-market behavior devalued their own assets when the crisis finally arrived.
So
now Barney Frank, one of the chief authors of this disaster is accusing
the critics of the Community Reinvestment Act of being racists. Those
are the the herbs in which Gourmet Democrats are stewing the lies about
where the responsibility for all this rests. Gourmet Democrat policy
for decades has
been to lower requirements for mortgages in the name of the poor.
Fannie Mae and Freddie Mac pumped hundreds of billions of dollars into
the mortgage markets, effectively creating the entire bundled mortgage
security market. That this was done as an altruistic enterprise to help
the poor should be taken into account as these same geniuses try to
'fix' health care in the name of the poor.
Now Palin and McCain
are out there hitting the Gourmet Democrats hard! It had to happen. It
was their only choice. The Gourmet Democrats were thinking that they
had successfully pinned this whole mess on the same hapless Republican
chumps who have been laying down and taking it ever since Bill Clinton
whipped them like a team of rented mules during his Impeachment Party.
But things are different. We're not going to let them walk away from
something this big. Clinton and Obama are up to their eyeballs in this
current crisis and McCain and Bush tried to do something about it
before it was too late. McCain has been forced by the stream of lies
directed at him to attack Obama, who is wide open on this. There is a
whole, noisy month to come and Nancy P's thin class warfare soup is not
going to be very satisfying. ACORN better register a lot of wino's,
felons, illegal aliens, cartoon characters, pets and Alzheimer's
victims to make up for the large number of people who will abandon
Obama and the Gourmet Democrats when the truth of this sinks in.