I've Been Shooting My Mouth Off
I thought I would link a comment I made a year ago on the bailout, in case anyone calls me on my claim that I saw it coming.
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I agree that many institutions in the mortgage industry assumed a level of risk that, in retrospect, was not wise.
I still think it was a very smart move for the bankers to make so many bad loans.
By making the bad loans, they can collect money from customers until it is time to take the house. Once they foreclose, they gain title to property that was purchased by conjuring money from nothing.
Then they can absolutely count on a taxpayer funded bailout.
So in the end, they gain property, reimbursement for expenses and monetary profit.
The fractional reserve ratio was suspended months ago, and the negative asset sheets that it looks like the big banks are carrying, appear to be guaranteed somewhere.
I think there is strong circumstantial evidence that the Gov has already begun the bailout, and has guaranteed their debts.
The full extent of the under the table dealing, is unlikely to be evident for a time. At least not until after the elections.
And even then, they likely won't admit the degree and length of time it has been going on.
Posted by: Weaseldog | February 7, 2008 12:06 PM
posted by Weaseldog @ 1:10 PM
2 comments
2 Comments:
Well-done. A handful of smart people (you included) have been onto this whole debacle for years now.
May have underestimated the magnitude of the crisis (who can envision unprecedented hellishness before it arrives?), but not the fact of the crisis, or its essential seriousness.
But you know what, of course, those of us who saw this coming will be shouted down in 5 years just as we're being shouted down now, and were shouted down 3 years ago.
All you can do is see what's happening and try to protect your own.
That's true Mike. Being right over and over, means much less than being able to moo in key with the rest of the herd.
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