Thursday, September 25, 2008

No One's Asking Why People Can't Pay Their Mortgages!


When I hear a description of the reasons for this financial game of 52-Card Pickup, it goes something like this:

The investment companies who bought and sold the bundled mortgages took a hit because of the sub-prime mortgage crisis. They're all connected to each other, and when one sector goes down, they drag everyone else down with them. And the reason the sub-primes went down is that people were defaulting on their mortgages.

That's where they end the narrative.

But nobody's asking why people can't pay their mortgages.

Listen, folks - it isn't just sub-primes. Do they just think that, all of a sudden, out of nowhere, huge swaths of people who have never had trouble paying their bills, who are never late on a payment, are unable to make ends meet? Did they all just go on a mad spending spree? Did they get hit on their heads so hard that the financial sense was knocked out of them?

This is the root of the problem and this is what everyone is not talking about.

So instead of addressing this problem, they're going to throw crazy money at the profiteers who made massive fortunes by taking advantage of the fact that it's getting harder and harder for regular people to keep up.

Good move.

I personally would receive a great deal of psychological benefit if Henry Paulson threw a shitload of money my way. It would be extremely therapeutic.


Anonymous said...

I can vouch for the fact that I was not hit on the head hard and lost all financial sense. I was a believer in better days coming. It was my belief that we would continue an upward trajectory that led to our own personal mess.

The power of positive thinking? Sucks ass. (she says positively)

Alicia Morgan said...

See, Dcup, your situation is exactly what I'm talking about. People with decent jobs, people who work hard and have that ridiculous expectation (which conservatives keep insisting is gospel) that if one works hard at a decent job, one should be expected to 'move on up' like the Jeffersons - not get poorer and poorer!

Yet it's happening everywhere.