The Pot Calling The Kettle.....

In the continuing Bizarro World adventure, the aiders and abetters of the Wall St. Fraudsters reared their ugly heads again last week leaping out of their collective Guccis in a lame attempt to blame the sub prime collapse on the victims rather than the multi-millionaire manipulators who got their 10k Rolexes caught in the cookie jar. Sure, I understand that people who cannot afford mortgages should not be getting them, but come on, who got scammed, the uneducated mortgage applicant or the slick weasel who saw a way to give a mortgage to someone they should have known could not afford one. There is one professional in these equations and it is not the underfinanced, no collateral buyer, it is the "I will stretch all the rules for a commission" Banker who had all the knowledge and wherewithal to write up the deal. They were not taken advantage of. There has been no charge of buyers lying to the bankers about their financial status. That is not in question. What is in question is, why would a knowledgeable professional approve a loan for a borderline, or worse, buyer? If they can't come up with a good answer for that question then they should not have their jobs, they are reckless and/or incompetent.

None of them deserve a bailout. The mortgage holder loses for trying to stretch beyond his means and the Banker loses for attempting a very risky mortgage. It is the Banker who has all the power so the failure is ultimately his sole responsibility. They should be allowed to fail. NO BAILOUT PERIOD.

Since when do the town criers of personal responsibility and free market start whining like babies for help when the wheels fall of their diamond studded wagons. Grow up, you tried a scam and you got caught by market conditions that were thundering on the horizon to be noticed. You are the Professionals and you missed the signals, you were asleep at the wheel and should suffer the consequences. Many other financial people saw the disaster looming and spoke often of it. While you were arrogantly sitting in your Ivory Towers counting your money people like Jim Rogers were shaking their heads waiting for the wake up call to slap you in the face. And it did.