For the life of me I don't know what is keeping this market from totally swooning. It seems to keep wanting to rise from the grave like some kind of financial zombie.
It takes a licking and keeps on ticking. Could it be that the fundamentals are actually rooted in bedrock rather than sand? Could it be that the worst is over and the resurrection is only a Sunday away? Don't think so!
One reason for a pessimistic view is the cobbled together plan to keep the suckers paying for another year or so, (the Teaser Freezer plan) being touted by the administration's version of "Our Gang" Treasury Secretary "Spanky Paulson" who is pushing the idea that if we can just keep the suckers from defaulting this year who knows what might be possible next year. The mortgagee dead will arise and walk the earth once again, checkbooks in hand, clamoring to continue to pay their now inflated mortgages on their now deflated in value homes.
More specifically the the plan works like this. The doomed are divided into 3 groups. (1)Those that can pay their mortgage even after it resets at a higher rate. Tough luck suckers. (2)Those that can't pay their mortgage under any circumstances. Tough luck suckers! And (3)those that supposedly CAN pay their mortgage if it stays at the "Teaser rate" for the next few years. Uncle Sam wants you! This third group is now being touted as the saviors of the system. These unfortunate home owners are being singled out for special treatment by the system. They are going to be allowed to continue to pay their bogus mortgages with the idea that this will give the system time to recover from its deluded venture into the nether world of sub prime paper.
That's right, the plan is simple, just keep this group paying for a while longer while the financial pharisees dance around the stone idols of Ayn Rand and Gorden Gecko chanting "Greed is Good." Actually the whole purpose of the latest chapter in this monumental Ponzi scheme is to try to keep this economy afloat long enough for the morons in charge to retire to their respective homes in Texas and Wyoming next year.
12/02/2007
The mortgage zombies arise!
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Whaaaat???!!!??? Are you suggesting the mortgage bailout plan is actually aimed at rescuing the lenders...instead of the borrowers? Hmmm...that's what I thought. As long as those monthly payments continue to roll in (for the time being), I suppose the banks are better off waiting a couple of years to foreclose.
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