Paulson Rolls The Dice At Taxpayer Expense

tvsterling at 23:15 2008-09-07 said:

I think the whole mortgage-housing crisis is turning into a death spiral, like an airplane in a spin or maybe more like a dead goldfish in a toilet. It goes like this. People wanted houses but weren't really able to realistically qualify for the loan. Presto Changeo the banks invented wondrous & strange financial instruments (ditto for the securities business). Times got tough & people begin to lose the home they couldn't afford from day one. Home prices spin down out of control. Everybody in mortgage lending & loan backing suddenly gets way, way conservative. They're not going to get caught holding the bag. Fanny & Freddie go bust & the government ratchets up loan conditions even more when they take over. Gonna protect the taxpayers money. The same people who couldn't afford a home loan from day one now can't even afford gasoline & cheap rents let alone the new tough,tough,tough loan terms. Houses lie vacant & values plunge lower & lower. Repeat the above cycle many times. Now even at fire sale prices people can't afford modest houses let alone the obscene Plywood Palatzios the builders have been cranking out. No bottom in sight. No solution in sight. I guess the religious right is going to trust in God. Only trouble with that is God has abandoned America. Eventually airplanes spin into the ground & crash & dead goldfish end up in the sewer. Not exactly inevitable but nobody seems to have a real plan to stop it. Least of all Paulson & the other super suits.AAA Permalink