Thursday, October 14, 2010

Suggesting we don't do the same stupid thing over and over and over again is "revolutionary"

Ready for the next chaotic crash?  Just like the last one?  Caused by state meddling once again?  To demand a stop to the chaos is now considered to be 'immoderate', 'revolutionary' even.  To argue for markets free of fascist manipulation is now 'extreme'.  Because you see, everything is rigged and to unrig it, well that might be 'risky'.

The scandal at the center of our latest mortgage mess is not the “robo signers” who played fast and loose with the affidavits submittedin foreclosure cases. It is that after years of propping up the banks and the alleged reform of the financial system under the Dodd-Frank bill, we still are teetering on the same precipice upon which we found ourselves in the wake of the Lehman Bros. collapse: Enormous amounts of toxic mortgage-backed securities remain on the banks’ books at imaginary valuations while prices for the $1.3 trillion in mortgage-backed securities are crashing, inspiring “too big to fail” institutions to seek special political favors. Fannie and Freddie are poised to insert themselves into the mix for political purposes, and normal financial processes are grinding to a halt as both regulators and the banks themselves put a hold on foreclosures. Meanwhile, thousands of would-be homebuyers have been cast into limbo because it is no longer clear that they can legally take possession of the foreclosed propertiesthey are buying.

Didn’t we just do financial reform?


Unemployment claims went up 476,000 last month.  The mortgage market has both been nationalized and is now teetering on another collapse which will collapse the real estate market again.  The government is bankrupt and we're inserting Stephen Colbert's colonoscopy in the Congressional Record.  We're the world's laughingstock.

But let's not do anything rash, let's not make any waves.  That would be revolutionary.  Because things are going so well.

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