Core Market

Sweet merciful crap.

Let me start off by saying 1) Ron Paul is Core ? I wholly agree with this. I should then follow up with 2) I am Canadian, and have vested interest in your election outcome only inasmuch as your economy typically dictates our economy.

That being said ? instead of pointing out what is wrong with your blog, which would take me far longer than this 1/2 beer I have left, I'll point out what is right, this one statement: "government printing money is inflation." As far as the balance of the blog, it is uncharacteristically uninformed ? lets do some research and figure out what caused this all, and what steps Big Ben is taking, and try to determine what to do after, hmmm?

Regards;

WouldVoteForRonPaulIfIWasAnAmerican

Nate,

While I admire your devotion to Paul, your analysis of the subprime crisis is totally off-base.

Basically what happened is this:
It used to be that banks controlled all their own mortgages, accepting the risk for them and reaping the profits. Back in the late seventies, someone on Wall Street had the bright idea of "bundling" mortgages - pooling the risk and selling shares in it like a corporation.

This meant that a bank went from being the risk-holder to just being the originator, taking their profits upfront without any concern as to whether the customer could pay the loan (after all, the bank was no longer involved in the credit risk). This led to banks making loans to people who could barely afford them, or who obviously could not afford them (hence the insider acronym NINJA loan - No Income, No Job or Assets). The banks didn't care because they would sell the loan within a month (sometimes even just a couple of days), and the investors didn't care because they were getting fat off of the older loans which were made in the eighties and early nineties, before the banks figured out that they could get away with loaning to destitutes.

People began taking out loans with bad terms, loans the could ill afford, assuming that they could either refinance or sell the house before the loan's "teaser rate" ran out and the interest rate went through the roof. When the price of houses started dropping, people couldn't refinance any more, and they got stuck in shitty loans which had high interest rates and high penalties. All this took place without federal involvement of any sort - it was a scam put together by Wall Street and the banks, another innovative way to steal money from poor people.

Where the Feds get involved is in the new bankrupcy laws, which are designed to maximize consumer responsibility to pay back their debts to corporations, rather than the old laws, whcih forgave most of a person's debt. But that's an entirely different subject.

For an accurate view of what happened, go to www.huffingtonpost.com

Thanks to you both. I am shitty with research and lazy about it. As for the blog's randomness and lack of coherency, that's kind of the point. I write about whatever I want. And from each day to the next, I often write something different.

Except for the snippets, which are weekly and regular.

If you're coming here for news, you're uhh... gonna be misinformed.

I know, i come here to be entertained.

That long-winded post was mostly for my own personal edification - and for your information.