New Century- dead. American Home Mortgage– dying on the vine. Novastar- on life support.
Seems like some of our old our frienemies are facing their day of reckoning.
So that being said, what portends for the market lenders? These clowns cut out the time-consuming due diligence and oversight and passed on “risk” guilessly, ignoring fundamentals, and it is looking more and more like the people of this nation are starting to realize there was a party they weren’t invited to, and now it’s over.
And how just how did we get stuck with the hangover?
Anyone placing bets on the failure of:
- Countrywide- the biggest might take the longest to expire
- IndyMac– on death’s door?
- Bear Stearns– recently downgraded to shit
- Beazer Homes- what’s that light at the end of the tunnel? It’s a train!
- Accredited Home Lenders– ditto
Favorite quote du jour from that last article:
Meanwhile, Securities and Exchange Commission chief Chris Cox said the SEC is coming up with new, more flexible accounting rule interpretations that companies and others could use to avoid declaring their mortgage securities in default.
Did Cocks just say what we need to combat this “liquidity crisis” is less transparency, not more?
Greed is good. Sure.
For those that took that as their call to arms, maybe you should have looked a little deeper into that statement. First off, it was from a movie fer chrissakes. The movie was a latter dale morality tale, with a twist- the chief antagonist, in the tradition of movies with anti-heroes- gets away with it.
That wasn’t exactly and endorsement. (Wall Street might be the most misunderstood movie ever).
Some people might say “it’s only a movie, a diversion, and yes, typical of the times in which we are living. tsk tsk.”
Others might say that “y’know, greed really isn’t good, and isn’t it clever how the film-makers used that twist to show how absolutley upside-down our country has become. We should really get back to the basics.”
Still others said “Yes! Finally someone understands me and the way I see the world! It’s winners v. losers- con-men v. suckers- young v. old. I can’t wait to fleece some old codger out of his retirement savings. Bring it on!”
Maybe that’s how we got here.
A service economy? That sucking sound really was Mexico (and China, et al) taking not just jobs, but skill sets, pride, and craftsmanship from an entire class of people.
From one American to another- we were given the finger.
This class war was brought to you by the banks.
Shed no tears for them, my friend. This “trust fund” class will be back- that is, if they’re not shot, should this depression get really bad.
Maybe the executive orders passed by the adminstration giving them full control in the event of a “national emergency” had more to do with this sort of scenario playing out than an “attack” from some invisible terrorist organization?
They do protect their own. BTW, if you are not in the upper 0.50%, you ARE NOT one of them.
Don’t kid yourself.