Since when did common sense economics turn into a losing game of dominos on steroids? We know that Banks loan and leverage out 10 to 1. So when you come to a Bank and pencil a mortgage, they loan, gamble and leverage up to ten times on that loan, splitting, dissecting, creating new products out of pieces of the loan and continuing. Are you dizzy yet?
Other specialty banks loan 30 to 1. Just when your eyes are trying to adjust to the Tornado in your brain and Vegas like psychosis of creating 30 leverage type loans off of one loan, then you have the complete insanity of Fannie May and Freddie Mack, leveraging their loans 80 to 1.
Maybe we should raise more tax dollars to buy medication for the heads of all these banks. Perhaps they need Inner ear treatment and surgery due to the extreme dizziness created with tracking so many loans. At least put them in a padded room so when they fall they don’t hurt themselves.
The bottom line is this: All this talk of main street suffering and urgently needing the 700 billion dollar fix is total rubbish. Certainly it seems a fix is desperately needed but it shouldn’t be giving more money to idiot thugs who did this in the first place. If we have to distribute money give it to the tax paying adults in this country to pay off their homes and start businesses. Let capitalism itself and competition start new banks with new talent.
Our Government should figure out the stark minimum of debt that must be bought, then find private companies to buy it not tax money. If private companies don’t want to buy it, the compromised banks should go under. Lending institutions were stupid and in my opinion fraudulent for loaning 10,30 and 80 to 1 for loans. Apparently Banking has been little more then Vegas gambling. Shame!
It’s not money that needs to be raised but rather a HUGE philosophy of business values that needs to be changed. If the heart of banking accountability and loans are not changed at their root level, it will be a matter of months or years before we have to fork out another 700 billion!
Dr. Laurie Roth Just Who is this Annie Oakley of the airwaves?
Laurie Roth has a Ph.D. in counseling and a black belt in Tae Kwon Do, is happily married and currently resides in Washington State. She is a singer/songwriter with five CD albums to her credit.
