Today’s quotations offering insight, perspective, apportioning responsibility, pointing out delusion

The only lesson that central bankers and politicians have learned is that there is nothing wrong with a Ponzi scheme. It is just that you can’t allow the game to end. Present initiatives to arrest the problems are merely designed to prolong the game without addressing the root cause and imbalances.” -Satyajit Das, New Money

With its talk of new taxes on banks, is Team Obama reverting to its now well established pattern of crony capitalist giveaways with the occasional phony populist reform as an increasingly ineffective disguise?” -Yves Smith, Administration Bank Tax Plan: An Empty Populist Gesture by Design?

Almost all people are delusional and think the post-bubble housing crash is the aberration, and that the housing market will return to normal one day in the (near) future. They do not understand that the bubble was the aberration, and those days are over and dead. They thought the bubble prices were the new norm. And the strange thing is that they liked it. They delighted in receiving a high price for their home, and never seemed to be able to factor in the reality that they would also pay a higher price for another home. Not understanding the bubble is a principal part of the problem in getting those people to understand the whole of their financial problem. Also, people do indeed desire to avoid default and they fear the effect that a poor credit rating will have on their future. I agree with Lowenstein that most credit rating fears are a bit overblown, and besides, it is far less problematic to absorb the short-term trauma from a shoddy credit rating and radically improve your long-term financial prospects while shedding the iron monkey on your back.” -Karen De Coster, It May Be Financially Irresponsible to Pay Your Mortgage

Much of the devolution we now face is a direct result of the degradation of integrity. This moral/ethical component of financial implosion is glossed over by the MSM because the Power Elites have implicitly undermined integrity and morality as a means of soldifying their control of the propaganda machine (the media) and of the national income.” Charlie Smith, The Inherent Problem with Offering Specific Advice

Also, check out this Youtube rant Massive Tzunami of Home Defaults Coming or How to Rob America Blind

“If the Mortgage Bankers Association is against defaults, its members, presumably the experts in such matters, might take better care not to lend people more than their homes are worth.” -Roger Lowenstien


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