Friday, October 15, 2010

Fool me Thirty-Seven Times, It's Still SHAME ON YOU, You Crooked Bastards

Pretty much link to Digby about the Foreclosure Crisis (Part Thirty-Seven, Or Didn't We Just Have a Problem With Banks Just Two Years Ago?):

...So I'm listening to Andrea Mitchell and Jim Cramer explain the Foreclosure Fraud Crisis as they wail and rend their garments about how terrible it will be for just everyone if these poor banks are held responsible for this problem because the whole economy will implode.

That's nonsense. People should go to directly jail at this point, do not pass go. The real estate market is still officially fucked and while everyone wants it to "find its bottom" coddling the big financial institutions and their crooked subsidiaries and contractors has not worked all that well for average Americans at any point in this ongoing crisis (or for Democrats for that matter.) The only people who are benefiting from the capitulation to the Big Money Boyz's threats and hoary predictions on this one are the Big Money Boyz and the GOP. The economy still sucks and will continue to suck until the incentives for this criminal behavior and self-destructive malfeasance are stopped...

Even those with good motives among the powers-that-be (and there's reason to be suspicious about many of them) continue to believe they can finesse this problem with band-aids or superficial remedies to keep the rubes quiet until the invisible hand fixes everything. They are petrified in the meantime that unless they give the oligarchs what they want, they will pull the plug and then where will we be?

This is magical thinking. There is not going to be any easy way out of this. The invisible hand may be working but it often works on a very, very long timeline and many bad things can happen to a society while it does its thing. Meanwhile, every incantation and folk medicine they've applied to this problem has resulted in another round of infection. It's time to open up the wound and completely clean it out. The patient will heal much faster and it's far less likely to die in the meantime...

...As I wrote yesterday, these banks are once again holding the country hostage with their threats that if anything should be done about their criminality they'll blow up the whole damned place. Well, they already are ---- in slow motion. If we want to find a "bottom" to this market, they need to institute a serious cram-down program to help real people work out these messed up mortgages instead of allowing the banks fix their balance sheets through fraud and the market to stabilize by throwing people into the streets. It's not working.

And everybody needs to stop worrying about the moral hazard of letting average people off the hook for their mortgages and worry a little bit more about the moral hazard of continually allowing these huge financial institutions to get away with murder...

This is the result of decades of failing to hold people accountable for their actions... the slow, inexorable end to oversight... the unwillingness by those in a position to stop the reckless and criminal all because of the glorified concept of "Free-market"... the foolishness of those who pursued their greed and ambitions without recognizing the damage done the last time we let this happen, and their open disdain of the New Deal policies put in place to make sure those damaging acts never happened again.

That saying "Fool me once, shame on you.  Fool me twice, shame on me" is only partially correct.  We've been fooled, again and again by The Geniuses Of Capitalism, the CEOs and Financial "Wizards" of Wall Street, into thinking that they held all the answers and had all the skills to make everyone and everything better by their guiding hands.  But we're not the ones who committed the crimes and fooled the people day in and day out: that's still THEIR fault and those CEOs and banking "wizards" need to answer for their crimes.  We're only to blame if we let them go.  AGAIN.

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