We are really in a bad economic and political situation. Understatement? Yes.
Our system contains incentives to people to "do deals," be it ot sell real estate, make loans, bundle loans, sell merchandise, whatever. And coupled with government policies designed to "help the poor," and to secure votes, such as the Fannie Mae and Freddy Mac fiascos based on the Community Redevelopment Act requiring investment in the form of loans in specific areas and to specific groups that lacked the resources to repay them, disaster resulted.
This is madness. The sharpies satisfied their political overlords by making the loans to bad risks without being able to even verify income. But they did not retain the loans. Government programs provided for quasi-governmental agencies to "buy" the bad loans, and then they were packaged by the Wall Street sharpies, who sold interests in the packages as if they were well-secured paper. So, the sharpies exploited the market created by the politicians.
You sometimes hear the proposition advanced that only a portion of the loans were issued through the Fannie Mae - Freddie Mac channel. I invite your attention to the oil price structure. A relatively small reduction in use has resulted in what, a 65% decline in the price of oil?
The reverberations of the bad loan packages which were bundled has resulted in foreclosures on conspicuously overpriced properties, and an overall decline in value so that possibly most of the outstanding loans of the past few years now are not fully secured. The debt exceeds the value of the property. With ownership being so dispersed that connecting the "holder" with individual loans is a logistical impossibility, these properites are entering the foreclosure market, and without owner equity, the inducement to retain ownership is low at best.
Enter the government as savior of the institutions. These "bad boys" overwhelmingly supported Obama. Their agendas are unrelated to those that propel "the masses." they care little or naught concerning homosexuals being married, the glory of a black as President, the teaching of sexual abstinence to students, the conflict in Iraq, or other matters unrelated to their financial agendas. These other "issues" are just talking points for those who don't know where the action is, and what it is about, and are indulged to secure voter support.
And guess what? While everyone was distracted by phony "issues," the foxes were in the henhouse. Now those Democrats who are not in on the thievery are ignorant, or willing to go along with or promote programs that will result in economic disaster, such as the perpetuation of the Community Redevelopment Act supervised legislatively by those two unqualified people, Congressman Franks and Senator Dobbs.
The people of this nation will be impoverished by an elite using the government to tax and redirect money to the interests of avaricious profiteers. They are in the seats of power with the Obama administration. And while his goal is socialization, which may indeed occur, this is the installation of the same statist economy that underlay that of recovering Nazi Germany, to the detriment of political freedom. Individual enterprise will be curtailed as funds are absorbed by the large government funded companies. We are going to hell in a handbasket. And the justifications were created by the very creeps now stealing from us. But it is the system that facilitates its misuse.
