normthefedup

Corporate Fraud + Government Intervention = Bailout Nation

...oh,...almost forgot....author, I've never seen agreement with an article to this degree. And by highly intelligent, articulate and LITERATE participants. Also unusual. Again, nice work and I applaud those of you who commented. Nice work, too.

Corporate Fraud + Government Intervention = Bailout Nation

Jim: outstanding, outstanding, outstanding. There's nothing I like more than a little venom with my breakfast. I, unfortunately, agree with EVERY point you've made and as a senior living off of mainly financial preferreds (down about 20% at this point by the way which is a NOTABLE improvement over where I've been in the last month or so), I believe you've hit the nail on the head. However, and not to disagree but to add a little more wood to the bonfire, I also go along with Catoelder, above. He's making the same point I've made for about a year now. Here's the scenario: the moron couple who are living paycheck to paycheck with a zero net worth and (need) TWO incomes to support their "lifestyle" of Mercedes and BMW, drift into their local bank to buy an incredibly inflated $800,000 house on an interest only ARM with no money down. Their intent and thought: "...don't worry about tomorrow or building equity, I'm living the good life today." $5,000 a month mortgage, $1,000 a month in taxes = $72,000 off the top of that two income family. One loses his or her six figure job, and they're in BIG trouble. Now throw in the "unforeseen distant possibility" that the house price would actually DECLINE (God forbid) or that the ARM monthly payment would actually go up (by DEFINITION), multiply this by about 10 million additional morons, throw in a generation of greedy unregulated banks, and you've got a disaster waiting to happen. Welcome to the day care generation, folks. Their parents went to work to save for the extravagant retirement that their untaught, irresponsible children have just taken away from them. I'm digressing. Again, author, nice piece. Catoelder, smart man. Good luck, we're going to need it.