Chronicles Of Depression 2.0: #231: Pray
I’ve been paying close attention to the testimony of Paulson and Bernanke.
The bailout is bullshit.
“Price discovery” is a pretty term for uncovering fraudulent valuations.
That’s what brought down Lehman Brothers. When people finally saw that a bunch of paper Lehman was valuing at $20 billion was fetching only $2 billion in the current open market, everything else was flushed down the toilet too. Lehman destroyed itself.
How many other companies have been playing that game? All of them!
“Market mechanism” is bullshit. There are no buyers right now. The housing market was based on outright fraud. Home ownership affordability has been made impossible even with writedowns. So where is this new massive sum of money going to come from?
They think they can now ignore the free-market principles they’ve espoused and pushed pushed pushed since Reagan came into office. They think they can sweep all this under the rug.
With the millions of foreclosed and now empty homes — that aren’t selling — how many construction companies will be able to get loans to build new unneeded and unsalable homes? Housing construction is dead for the next five to ten years. There’s already a glut of inventory.
You think international investors aren’t going to notice this? Do you think they operate under different accounting rules than everyone else? Do you think they won’t see the past ten years of foundational wealth essentially being erased? With the government trying to assure them, Hey, no, really, it’s okay to still buy our Treasury Bills in order for us to continue increasing our national debt. Backed by what? By what collateral? Millions of homes empty and falling apart due to being empty and unmaintained?
Paulson and Bernanke were asked more than once to explain the ramifications to the average American of not passing this bailout. They balked. They won’t say it’s The End. They won’t even say that even if the bailout FAILS — and it will — that it’s The End. It would enrage the American people to find out they’re facing an American Gotterdammerung.
I’ll damn well say it: It’s The End.
And there’s one point I really must address. It was said quickly: “People buying homes they couldn’t afford.” What? Say that shit again? Do they think these people walked into a store with a fucking credit card and said, “I’ll take the Colonial!”? Are they fucking insane, to try to pass that shit off on us? There had to be real estate agents, mortgage brokers, bank financing. Speedbump after speedbump, check after check, to validate the buyer. People who rightfully never dreamed they would ever own a home were lied to and told they could. Millions and millions of people were outright lied to. And because they believed, because they made their faithful mortgage payments up until the time the ARM jacked up the mortgage to double or even triple what they were paying — those people are the villains of this piece? Oh no no no. You can’t pass that truckload of bullshit off on me, nor on any other American — especially the millions who were defrauded!
This makes me so fucking angry. Can you tell?
The word used again and again is “unwinding.” Hey, unwind that shit. All documents have signatures on them. Trace them back and back and back to the real estate agent, the mortgage broker, and the bank officer who signed up. Put those people in jail to begin with. And then wind it all back up and go up that ladder again and put in jail the megabanks who took these lies and fraudulently revalued them, laundered them, and sold them.
As it is, this bailout is nothing but another grand fraud.
I can smell it from where I sit in front of the TV watching CNBC. So will international investors sitting in front of their TVs watching CNBC.
This is The End.
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