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Mass Psych Mortgage Madness

If you keep up with market / business news then you've heard the angry low whine surrounding the adoption of negative interest rates all over the world. Our own POTUS is probably already decided, after all Bannon has spoken, but ostensibly he's withholding his decision to repair his already tattered reputation as a wise man of business.

This post is economic however, not political. Well its psychEcon anyway and heres the point. These rates are akin to a discussion of communism or anarchism. It is simple to argue the merits of both but we all know that the reality of human nature and behavior (of which economics is the study, not money) is that we are not able to universally adopt anything that either does not allow or allows far too much room for self-interest.

This is even more true in a culture where we no longer really need each other for anything and we prefer anonymity even in our social interactions. We are able to secure everything we need regardless of capital via instruments of debt. From food to shoes to pointless 4k televisions we'll replace before we use; everything is available via overpriced debt.

The financial crisis of '08 and the years since have brought an awareness to the average person that financial institutions profit quite remarkably from pools of this bad debt. We all know the story by now and there is no point in reiterating except to say that 08 changed NOTHING except the Marketing Departments of these cabals of desperate millionaires. Bond sales cooled and we heard STOCKS, HEDGE FUNDS, ETFs. Many might have even been naive enough to think one or two learned a lesson. But they didn't..

..NeWAcRoNyMs, old scams, and a few years later and we have an entire "global economy" complicit in pretending to fix itself by overturning the natural order. Interest rates exist to secure debt and provide an opportunity for a well capitalized entity to profit by making that capital available. Only dubious mathematic illusionism by a cabal of charlatans could create a product that defies this convention and that is what has happened. We must look no further than the state of the OTC derivative industry, much of which lives in poorly regulated, exploited markets that have been emerging for two decades; the hordes of "bespoke OPPORTUNITY" (wall street slang for you're about to get screwed) portfolios and they're so-called managers (charlatans or shills or both).

These products are poison to the market and represent a blade driven through the hearts of people baited with hope and the promise of "something for nothing" and maybe even "a little back" into signing their life savings or their carefully preserved FICO (if anyone bothers to pull it) over to a shark in silk suiting who will immediately convert that instrument of trust into a wall street walker that floats, masquerading as data, along trails of copper and gold and spits the latter out of every brokerage mainframe it passes through like a cobra; tongue flicking to sense its next kill.