Good luck with those record poll numbers for the first 100 days, America. And don’t forget: keep talking to the hand. And if you happen to have a little moment in between drooling, ask yourself: who pays for the bank bail-outs? Remember, they need to be bailed out because they have debts so indecent they need to wear pants in public. And you think your president can pay off those debts?! He can’t, not even now he’s taken everything you own. You didn’t own nearly enough before, and you owe nothing but debt today. Any appeals to transparency and the rule of law will be dealt with the way Ken Lewis tried today at the Bank of America shareholders meeting. He told that bunch of sore losers that he was mum on Merrill’s losses because of “systemic risk”. He did so just a short while after telling Andrew Cuomo it was because Paulson and Bernanke made him do it. Hey, who cares about the difference anymore? All we need to do is sit back and wait for Obama to start using terms like “systemic risk” and “national security”. He will as soon as those numbers start dropping. For now, though, it’s Lala Land all the way. US GDP drops even faster than Germany, and the street turns a “healthy profit”. We must be stuck in Pleasantville, Land of Oz, and glued to the Truman Show. Say what you will, but the Obama campaign is one of the most outstanding sales jobs in history, fridges for Eskimo’s territory. The economy tanks, and stocks rise. A politician robs his voters blind, and his ratings go through the roof. This is not a housing bubble or credit bubble we’re witnessing, it’s a reality bubble. -Ilargi
Why Congress Won’t Investigate Wall Street [WSJ]
If millions of households no longer qualify for a mortgage, then who’s going to be buying the 8 million houses which are in default? Yes, speculators are busy snapping up “bargains,” but few seem to ask who will be buying from the speculators. [oftwominds; Housing: the Steeplechase Analogy]
Hopium: the fragile hope that a future re-inflated bubble will lift the value of worthless assets back to their bubble-era glory.