Posts Tagged “banks”
Sometimes you just have to wonder on what some people’s brain functions. In the 60’s most of us knew it was pot or some new form of LSD. What is it today that makes people ignore reality and be so willing to accept the “spin doctors’ dribble? I personally think some people just can’t deal with reality, so they fabricate a new fictional version of reality that satisfies them emotionally.
The economic collapse was spun as a failure of “capitalism.” The reality is that it was a failure of a government socialistic attempt to manipulate the lending practices of banks and savings and loan institutions. As a result of the huge amount of subprime loans that were being made, the demand for homes rose. This increase in demand destabilized the market and sent the price of homes to ever higher and higher prices. You know… the law of supply and demand.
Then the first signs of a deep recession started to occur, and more and more subprime borrowers began to default on their loans as the economy worsened. Many banks and mortgage insurance corporations such as Fannie Mae, Freddie Mac, and AIG were unable to survive due to the record number of subprime defaults.
This was forecasted as early as February of 2007. This should be no surprise to anyone that the subprime market started the loan defaults. After all, these are the same people who have a record of poor financial management, or else they would not have had a low credit score in the first place. And it should be no surprise that the unintended consequences of subprime lending such as loan derivatives, CDO’s, credit default swaps, hedge funds, massive housing speculation, risky home equity loans, overstated appraisals, zero down loans, and greedy bankers and politicians surfaced.
To make matters worse, it all could have been avoided if the government had kept it’s hands off of trying to social engineer our society. Now we have those same bleeding heart socialists trying to spin it as a fault of capitalism. Are there greedy people in banking and on Wall Street? Duh!
There are greedy people anywhere there is money and power, but even China requires 30% down on all home mortgage loans, and guess what? They don’t have a mortgage problem. In the wise words of Bill Shakespeare, “Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry”, Hamlet Act 1, scene 3. Don’t swallow what you hear like a fish rising to the bait.
Stop and think. Life is much easier when you do, and thus, many of life’s pitfalls can be avoided. The global warming claims by alarmists like Al Gore, and countless others, are another good example of this human phenomenon. For years we have been listening to “Brother Al” and his fish tell us that rich nations like the United States are the cause of the Earth’s “global warming.” And if we don’t tax our energy consumption and give the taxes to some poor country so they won’t cut down their trees, then we are all doomed.
And most of the same gullible people who swallow every word from these “Brother Al” types bought into it. Those of us with common sense know that the Earth has undergone a lot of climate changes. Just ask any geologist. And the Earth’s climate will undoubtedly continue to change regardless of what mankind does. To help settle the issue Germany, Italy, New Zealand, the United Kingdom and the United States put together a drilling project in Antarctica to determine what the Earth’s past climate changes were like, and possibly how fast the changes were.
The project is called “Andrill.” (www.andrill.org/news/sms1). What they have found is that the Earth has undergone multiple warming and cooling periods, and that the change can be very rapid. The Earth was so warm during these periods that Antarctica had abundant plant and warm water sea life with no ice covered glaciers. This has happened many times in Earth’s history. This has shocked many scientists who had swallowed Brother Al’s line of pseudoscience and expected a stable Antarctic climate until now.
Why, I’m shocked, aren’t you? I’m shocked that these scientists would jump to conclusions first, and then look for evidence to back up what they want to believe. We should never take ourselves too seriously. We have very little effect on the Universe and we really aren’t very important in the grand scheme of things. When we get so arrogant that we think we as humans rule the
World’s climate we need to get a grip. I think we watch too many science fiction movies. Changes in the economy, global climate, and almost every aspect of your life will occur.
Heraclitus, a Greek philosopher, said the only think constant is change. What is important is that you don’t panic and swallow some spin doctor’s fish bait. Relax, and take your big SUV for a Sunday drive around the lake. One good thing out of this is the fun we will have watching all of these left wing bozos eat crow. — Larry Oscar
Larry Oscar is a graduate from the University of Tulsa and holds a degree in electrical engineering. He is retired and lives with his wife on a lake in Oklahoma where he brews his own beer, sails, and is a member of numerous clubs and organizations.