What we have once again discovered is just how far Human Nature will take us when we have all abandoned the rule of law and constrain ourselves by good common sense and hundreds of years of accepted rules and regulation designed to keep good order in a banking community.
My wife and I were watching an oversight committee hearing not long ago and she commented, "I remember you use to say Greenspan had gone mad and we would pay an awful price. Did you think it would ever get this bad?" To which I had to admit, I never thought we would prove to be this bloody foolish. But we were and then some. We abandoned every rule of banking and kept creating products with fewer and fewer rules such as "exotic ARMs'" so toxic they allowed housing inflation that would leave most of the housing market trapped in a negative equity position for decades to come...assuming we have decades to ply our greedy wares. And assuming we do not see a complete collapse of the housing and banking industry, a harsh probable reality as we continue to prop up an industry drunk with the fornication of it's own greed.
The banking industry is more than 120 Billion dollars UNDERCAPITALIZED...and that does not include continued losses that will accelerate as real property assets and other collateral continues to spiral down in value...that is called deflation and we continue to ignore its impact on the here, the now and the future. Expect to see millions more abandon this very poor investment in favor of alternative and less expensive options...yes, MILLIONS more.
Then look at Wall Street...the largest casino in the world. And EXPERTS continue to INVEST in stocks with little real value beyond "PAPER" value. Yet another scheme to part the fool from his money.
The only person I know that did not loose any money is a man who invested his money the past 60 years in "CD's" with a govewrnment guarantee called the FDIC. His modest investment philosophy has left him comfortable and anle to sleep well every single night of his 84 years. I salute his conservatism and envy his results.
Gailon Arthur Joy
AUReporter
