The other shoe flying
Wednesday, December 17th, 2008by lord anthony
Dropped my bucket twice today in the Well of Google 
and got this to think about…..There are 624,000 references under the search
for "trickle-down economics" and only 68,000 for "trickle-up economics".
for "trickle-down economics" and only 68,000 for "trickle-up economics".
A factor of ten difference. The first is caused by
governments allowing greedy investers to have their way in the world of money,
the second by governments improving and stabilising the world we ALL live in.
governments allowing greedy investers to have their way in the world of money,
the second by governments improving and stabilising the world we ALL live in.
The subprime mess is causing awful grief these days
because poorly-regulated US banks and mortgage-hustlers sold sweetened-up
packages of loans as investments to greedy international speculators during the
past decade, without telling them the borrowers had shitty
credit-ratings.
because poorly-regulated US banks and mortgage-hustlers sold sweetened-up
packages of loans as investments to greedy international speculators during the
past decade, without telling them the borrowers had shitty
credit-ratings.
It remains beyond my grasp how supposedly shrewd
people would fall for this. Has the word "sucker"
been withdrawn and nobody told me….? And what about "due diligence"?
people would fall for this. Has the word "sucker"
been withdrawn and nobody told me….? And what about "due diligence"?
We now reluctantly know a fair bit about subprime,
it has tanked and we're in
the initial stages of recovery.
it has tanked and we're in
the initial stages of recovery.
However, in 2009 we will be hammered considerably
worse by the second shoe flying, the emerging Alt-A mortgage collapse driven by
massive defaulting on much larger loans which were likewise passed on to those
investors in without telling them they were based on lies.
worse by the second shoe flying, the emerging Alt-A mortgage collapse driven by
massive defaulting on much larger loans which were likewise passed on to those
investors in without telling them they were based on lies.
The credit-rating of those loaned a trillion Alt-A
bucks was higher than subprime but lower than A-rated so may have been an easier
sell, but surely not by much. Whatever happened to "once bitten, twice
shy"…?
bucks was higher than subprime but lower than A-rated so may have been an easier
sell, but surely not by much. Whatever happened to "once bitten, twice
shy"…?
"Some mortgage brokers and loan officers urged
borrowers to inflate incomes, exaggerate job titles or increase loan size
because lenders could profit by selling riskier Alt-A loans to investors", said
Jim Croft, founder of Reston, Virginia-based Mortgage Asset Research
Institute.
borrowers to inflate incomes, exaggerate job titles or increase loan size
because lenders could profit by selling riskier Alt-A loans to investors", said
Jim Croft, founder of Reston, Virginia-based Mortgage Asset Research
Institute.
Another contributor observes:"trickle down
economics is when you give tax cuts, grants, or other welfare to the rich;
thinking they will use it to create jobs, thus the money trickles down to the
workers. This never works because if the rich wanted to hire people, they
already have the money to do so. The rich then invest the money in the stock
market. This could help America if the company was a U.S. Company but most
aren't, and end up competing against the USA…. "
economics is when you give tax cuts, grants, or other welfare to the rich;
thinking they will use it to create jobs, thus the money trickles down to the
workers. This never works because if the rich wanted to hire people, they
already have the money to do so. The rich then invest the money in the stock
market. This could help America if the company was a U.S. Company but most
aren't, and end up competing against the USA…. "
And from my perch, add bank bail-outs. History has
shown that when bankers come wailing to government and get what they want, they
aren't any better at easing up on loaning it back to small businesses or to someone
having trouble with family home mortgage-payments.
So…why does the world, including ordinary folk,
think it's preferable to stay close to the dinner-tables of the rich in case
some crumbs and morsels drop? That would be trickle-down.
think it's preferable to stay close to the dinner-tables of the rich in case
some crumbs and morsels drop? That would be trickle-down.
Why wouldn't we support wealth slowly flowing the
other direction, into a better society through taxation of those with plenty of
dosh?
other direction, into a better society through taxation of those with plenty of
dosh?
No, I haven't been smoking dope, but I did watch
"the Prairie Lion" on the weekend, the Tommy Douglas story. It's exactly what
his CCF party did in successive majority governments in Saskatchewan, coaxing
and encouraging the feds under Diefenbaker to commit to the same for all of
Canada.
"the Prairie Lion" on the weekend, the Tommy Douglas story. It's exactly what
his CCF party did in successive majority governments in Saskatchewan, coaxing
and encouraging the feds under Diefenbaker to commit to the same for all of
Canada.
We should thank our gods each day for Tommy
Douglas.
Douglas.
On a closing note of signature irony: the fine
actor Michael Therriault who played Tommy Douglas? He didn't know who TD was
when he auditioned for the part.
actor Michael Therriault who played Tommy Douglas? He didn't know who TD was
when he auditioned for the part.
How Canadian is that.
Eh.