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Sunday, October 16, 2011

Who Is Really To Blame - Get A Mirror, Paper + Pencil

I have written this up before, but it seems this is going to be something I end up writing a thousand times. You will not find me down there at the Occupy Wall Street nonsense because I have an aversion to being used as a pawn in somebody else's chess game. Also, while the idea of revolution seems like the perfect antidote to chronic boredom, the bloody mess it actually is, is tedious and a waste of our rather limited time on this planet.

Here is a simplified, most likely not complete, list of how we got where we are today.


  1. Idiot voter: I include myself in this category, because I was not paying attention either. Democracy takes work on our part, and by that I do not mean listening to propaganda on the radio, TV or which shows up in your mailbox in high-glossy format. You have to look at the voting records of incumbents and career politicians, research who owns them and consider their character. All of this information is available online so this is not as difficult and time consuming as you may think.
  2. Idiot Consumer: If you are not smart enough to figure out whether you can afford a house, don't buy one.
  3. Skanky Mortgage Brokers: Bad credit is not OK, your responsibility is to bring lenders professionally underwritten, accurately documented loans according to a set of sound underwriting principles. For doing this job, you will be rewarded well, but the job must be done. This does not mean take any sack of crap and wrap it up in fancy paper and put a bow on top and call it a gift from Tiffany's. That is called fraud.
  4. Skanky Realtors: Yeah, you know who you are - guiding your little sheep to the skanky broker to collect your 5% on a way inflated and over-priced house. Between 2002 and 2008 we bought 2 houses and had more than one realtor tell us to make up an income number to get the loan. We resisted and bought something we could actually afford instead. You won't be seeing either house in any "House Beautiful" or "Better Homes and Gardens" issues, but so far we have still made every payment on our loans and intend to continue doing so until they are paid off, despite the fact that they are both "upside down".
  5. Skanky Consumers: As just stated in 4. both of our houses are upside down. We owe more than they are worth. We will not walk away from them, we will continue paying the loan. We went to them and asked them for the money, nobody forced us to do this. We signed papers saying we would pay the money back, and God willing, that is what we will do.
  6. Some Mix of Lender SKANK and FANNIE AND FREDDIE SKANK: I am not a banker and never have been, so the details are kind of fuzzy and not fully understood by yours truly. I think it basically goes like this. BANK lends you money to buy house, do all the paper work, wraps it up all nice and pretty and turns around and sells it to F&F. F&F now actually bear the risk of the loan, or perhaps a major part of it, though you never see this because you get your statements from BANK. The problems started when F&F SKANK was created by POLITICIAN SKANK and F&F EXECUTIVE SKANK.
  7. POLITICIAN SKANK: As best I can tell, the SKANKIEST POLITICIAN is BARNEY FRANKS but he probably had lots of help. (From the Republicans, who repealed Glass/Steagall, the regulatory law put in place after the GD.) Basically what happened is that they gave the orders to F&F to lower their underwriting standards and accept loans from people who might not be able to pay them back. They claim they did this to help lower income people afford their own home, which is not necessarily bad if it is done carefully and with the proper oversight, but it was not. In fact, BARNEY FRANKS SKANK actively worked against the Republicans who tried to point this out in 2002. The Republicans, lacking moral conviction, balls/backbone/spine, gave in like little girls. Republicans are little girls.Democrats are lying, thieving whores. Do we really want either running our country? You Won't Believe Who Newt Gingrich Wants To Throw In Jail For The Financial Crisis
  8. F&F MEET GOLDMAN SACHS SKANK: Probably because they knew that they were sitting on a big pile of CRAP, F&F allowed Goldman Sachs to take all of the suspect loans, chop them up into pieces put them in a pretty box and call them Mortgage Backed Securities. Now, this can be a clever thing, or this can be a big problem depending on the soundness of the underlying asset - which is your loan, my loan, Betty's loan etc. In a grown-up, honest sort of world, there are things called ratings agencies which put a rating on financial investments to help buyers pick the investment which is best suited to their financial goals and is indicative of the level of risk of the particular investment vehicle.
  9. RATING AGENCY SKANK - This whole mess could have been averted right here, but for the fact that the rating agencies such as MOODY'S &  STANDARD & POOR'S seem to be composed of nothing but idiots, liars, thieves and whores. This is where I would start out with my indictment pad and several sharpened pencils. I would start here because the whole reason for these guys to exist is to stamp an investment with a letter indicating how risky that investment is. THAT IS THE ONLY REASON THEY EXIST. IF THEY HAD DONE THEIR JOB, GOLDMAN SACHS COULD NOT HAVE SOLD THEIR SHARES OF THE DUNG HEAP. MUNICIPALITIES WOULD NOT HAVE TOUCHED THEM, OTHER BANKS WOULD NOT HAVE TOUCHED THEM, THE CRISIS WOULD BE LIMITED TO A BUNCH OF BAD LOANS. BUT THEY GAVE THEM AAA RATINGS!
  10. FED SKANK: This business of keeping interest rates way low. My personal opinion is that they are doing it so the US Federal Government does not go bankrupt. We are so in debt that if the FG had to pay normal rates to borrow, we would be using 60% of the budget just to pay interest. We are so screwed.
So I hope that helps. I welcome criticism from people who know something and can set me straight and help me fill in the details or add to the list. I am also interested to know whether there is anyplace on the globe which will be left untouched by the current Marxist takeover, and if i go there and keep quiet will you just leave me the Hell alone? Memo to Webster's - Please put the word SKANK in the dictionary, because it is a much needed word and it drives spell check crazy.

RH


ps. i voted for obama - i thought he would go after the skanks. so far, he has not. why not? mc cain was one of the keating 5 - of the S&L crisis. 'member?
June 12, 1933
San Antonio Express - March 3rd, 1933 - "President Roosevelt plans to ask the new Congress for the broadest powers possible under the Constitution to permit him to slash government costs."
Progressive Movement in 1914? You Betcha!
(makes you wonder what happened to them...)
An Advertisement for the Progressive Movement from 1914 - As usual being deliberately vague about what they are about - still for PROGRESS! What else was going on in the world around this time?  
Vladimir Ilyich Ulyanov - aka Lenin
"But there are many and varied reasons for the crushing defeat administered to Gov. La Follette and the progressives on Tuesday. One need only peruse the returns from the agricultural counties to spot the spirit of revolt and discontent which existed there. Farm prices, particularly milk, are down. The farmers of Wisconsin of German and Scandinavian descent were raised on traditions of thrift. They have become skeptical of the governmental spending program as the best way to bring back recovery. They read the stories in the newspapers of the increases in governmental debts. They read the stories in the papers about the government maintaining an army of WPA loafers." Wisconsin State Journal, November 13, 1938

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