Bill S. Friend's  Instablog

Something has been bothering me since this whole toxic asset debacle started.  Surely these banks who have been buying mortgages on the secondary market would have in place some sort of non-performance clause.   I have signed and signed at closings every sort of paper guaranteeing banks have no liability whatsoever.  Why havent these toxic assets reverted back to the original maker or issuer when defaults reach a certain pertcentage?  The lack of non performance clauses is a clear indication these bankers worked in colusion, knowing full well the true value of the instruments they were creating.    

Let me clear something up for you.  I have lived in S. Florida for 23 years.  Prices have reverted back to 1990 levels or lower.  Even prudent investors are underwater in their motgages.  Real estate has NEVER taken a dive like this before, in fact until recently it was the biggest most stable investment you could make. People were buying homes because if they waited they would not have a place to live. 
 We were all screwed by greedy bankers and rating agencies who saw a chance to make a fast buck.  They rewarded themselves with fat bonuses and have disappeared into the woodwork.  Paulson MISLED congress and REWARDED the very same people who caused this mess!  THIS IS A RESULT OF FRAUDULENT BANKING PRACTICES!!  

     From the Q&A sessions with members of congress it is increasingly apparent that our fiscal policy is implemented by amatuers.  This coupled with the lack of long term planning and disjointed policy due to regime changes undermines the economy.   One of governments responsibilities is to create a stable environment which allows its citizens to store wealth for the future, clearly, this is not being accomplished, and the opposite is actually occurring.  Individual investors have been punnished excessively given stock market and real estate exposure.  Corporations use insider information and complex schemes to short change the US consumer, worker, and investor, which are the real powerhouses of our economy.  The media pursues an agenda consistent with its own interests.  Law is in place but not enforced, to a degree where complicity is suspect.  

     Private sector business is able to "game" the system with complex computer trading programs.  Television effectively brainwashes the consumer, and planned obsolescence creates the need for more.  Once set into motion, there is no turning back from this tack.  These corporations desire nothing more than to input the necessary figures to drive their earnings calculations ever higher, consequences be damned.  They would literally drain the life blood of their victims if offered impunity, and profits were in the offing.  The financial rewards of this behavior somehow absolve all guilt.  Perhaps the computers are now in charge?

    Future prosperity is in jeopardy, yet the cycle cannot be stopped.  Even poisoning our own environment with the excuse that to stop would harm the economy.  We nod yes, and then look around to make sure we are in unison with all the other nodders.

     Conventional wisdom believes more spending will stimulate the growth that is needed to resume our wasteful ways.  Corporations cast powerful influence over our policy makers, as they grasp for more.  To their own detriment land is plundered, resources are squandered, and populations are poisoned in a greedy but often failed attempt for more.

     Everything has a beginning and everything has an ending.  Delaying this ending will harm future generations in ways we do not yet know. 

Long New Gold Inc.  NGD