But don’t worry. If these mortgages default it’s on the taxpayers. (Like it always is these days.) What? You have a problem with that? It’s only your money.
Between the Fed and its asinine monetary policy, and the government and its asinine social policy, mix in a little greed unregulated by the market, and a financial crisis was just a matter of time. Incompetence, dream world thinking, and unethical business are a potent formula for economic dysfunction
“I felt like a guy in the boiler room of the Titanic, desperately bailing to keep the ship afloat for a few more hours while the DOJ attorneys complained from their first-class cabin that their champagne wasn’t properly chilled.”
The Penny Pritzker’s father bought Superior bank for his daughter after she graduated from Stanford. Ms. Pritzker expanded the bank into subprime lending, becoming a leader in risky home loans. The bank would die an ugly death however, with serious accounting violations and customers losing $10 million in deposits even though Penny Pritzker was worth over $1.5 billion.
Detroit used to be one of the “big big cities” of the United States. During the middle part of the 20th Century it was a capital of industry and economic vitality. New York, Chicago, LA, Philly, San Francisco, and Detroit. The heavy hitters. Now Detroit seems only to be taking the hits.
Did I say wind down? No I meant expand! —The President comes up with a new scheme for bailing out underwater real estate investors and Wall Street firms stuck with “toxic assets.”
I remember the heady days of 2004-2005 when I’d go to barbecues at people’s houses and late 20-somethings and early 30-somethings would rattle on about how much “money” they had made on their house since they bought it.