Saturday, September 20, 2008
Eddie Worries About His Investments
I couldn't post
Friday, seein' as how I'm not a pirate and I know of no pirates with my accent. The big news is still the economy. As anyone can plainly see, Eddie T. Dog is worried about his investments. Poor Eddie, look at all those wrinkles.
I am gradually getting somewhat of a handle on this financial mess. Seems that there are two major components of this. The first components is, of course, the insistence that lenders loan large amounts of money to people who had no chance of paying it back. Otherwise it would be racist. Even though most who were caught up in this are white. The main problem seems to be that folks thought that the astronomical housing prices would keep going up, forever. So folks kept borrowing more against their houses. Unfortunately, bubbles burst. When the housing prices started falling those big loans remained. This does not count those who bought houses to flip. Those folks didn't help but there weren't enough of them to cause this mess.
So, that started it. Worse came the idea that they could bunch up millions of dollars of these shaky mortgages and sell them like stock. Now that is not so bad but then other geniuses got the brilliant idea idea of doing this on credit. There is a major difference between FDIC regulated banks and the other entities buying these "investments" on credit.
Now those are things I know. Here is something I wonder. We know that there are a LOT of bazillionaires who are Democrats. We also know that George Soros, one of those bazillionaires, hates Republicans and has no problem hurting people to make money, see his raid on the British Pound. We also know that the Democrats in Congress laughed at that "incompetent" Bush when he tried, through both of his terms, to get Congress to fix Fannie and Freddie.
We know the Donks hate Bush. How much of this mess would have been prevented if the Democrats were not fighting fixing Bush? I suspect a lot, just reading what the Donks are saying in blog comments.
So, is it stupidity or malevolence? Or some combination? The hard thing is convincing Eddie that we will keep buying Milk Bones and Beggin' Strips.