Realitology
“The Study of Reality”
Warning! This Blog Contains Social Commentary, Brilliant Observations, Dry Wit, and Rampant Sarcasm. Use At Your Own Risk.
Posted Business, Consumerism, Economics, Politics on Saturday, August 18th, 2007.
Comments(9)
Add Countrywide Bank to the Corporate-Greed-Induced Fuck-Up of the American Economy.
Or As I like to Call It…Savings and Loan Crisis – Folie à deux
Californians rush to pull money from Countrywide Bank
Parent of home loan company assures that bank is stable
The rush to withdraw money — by depositors that included a former Los Angeles Kings star hockey player and an executive of a rival home-loan company — came a day after fears arose that Countrywide Financial could file for bankruptcy protection because of a worsening credit crunch stemming from the sub-prime mortgage meltdown.
The parent firm borrowed $11.5 billion Thursday by using up an existing line of credit from 40 banks, saying the money would help the lender meet its funding needs and continue to grow. But stock investors, apparently alarmed that the company felt compelled to use the credit line, sent Countrywide’s already battered stock down an additional 11 percent.
They borrowed $11.5 BILLION
Of course everyone knows that the real problem with the economy is the welfare cheats and the labor unions and the over-regulation of the benevolent corporations who are looking out for all of us. Shoot, just read Jerry Bowyer’s column in the National Review and you’ll see it’s true.
Here’s where the problem isn’t: household wealth. Right now, household wealth is the strongest it has been in this nation’s history. Corporate profits are as strong as ever, too. Business has plenty of cash on hand.
It’s also not a borrower problem. Mortgage applications are up, not down. Personal income is up, not down. Mortgage interest rates are still relatively low. Default rates are up slightly, but still quite small.
It’s also not a sub-prime problem.
Hmmm. Interesting. See you silly people, household wealth is the strongest it has been in this nation’s history. Although I do recall something about American’s having a negative savings rate these days and real wages being lower than they were 30 years ago. I guess that’s some quirk of economics that I don’t understand. But I do know that when corporate profits are the highest they’ve ever been that’s got to be good for the average America Citizens right?
But don’t worry, Jerry has the answer for us…
And who has the standing to bring together these diverse parties — the regulators and the Fed — and get them talking to each other? There’s only one man who can do that: George W. Bush.
I’m not talking about a bail-out. And I’m not talking about further regulation. To the contrary, I suspect that when we find what’s blocking the credit hose, we’re also going to find a regulator standing on top of it. We need to find out for sure, though. And there’s only one person who can get all the right people in the same room at the same time.
I’ve always been glad that we have an MBA president. It’s time for him to step up.
Damn straight! I’ve always been glad that we have an MBA for president too. He’s done wonders for our country so far. And I think you’re correct Jerry, the problem with the economy is over-regulation. If only we hadn’t over-regulated Enron and Worldcom, I’m sure they’d still be around and powering our super economic engine.
Maybe Mr. Mozilo of Countrywide would like to have a little get together with Charles Keating and Neil Bush. And heck, Jeb and George Bush oughta be there too to because they know a little sumpin’ sumpin’ about that ole’ savings and loan crisis in the 80’s. Shoot, that little mishap only cost the American taxpayers $123.8 BILLION. And what’s a few hundred Billion between politicians and corporations?
But I’m sure Jerry Bowyer and the supply-siders are probably right. The problem is over-regulation not under-regulation.
When are we American’s gonna learn that you can always trust a corporation to do the right thing? All we have to do is spend our way out of this crisis. I’m sure we must be getting close by now…
| The Gross National Debt |
9 Responses to “You Hear The One About The Banks Going Broke And The American Taxpayer Bailing Them Out?”
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B,
I know you’re busy, but man you have to post more often. This was great. You’re really starting to hone that caustic sarcasm down to a fine point.
But you know it’s really the “Welfare Queens.”
The thing that sucks about Kharma is that even if you’re not involved in the “Bad shit” it still affects you.
Sometimes I think the fools are going to kill us all, and there’s nothing we can do but stand around and wait for it.
NO NO NO, Fairlane, it’s the space aliens! Yup, “they live!.” I’m glad you both have the sunglasses. Fairlane is right, please post more, YOU ROCK!
Now where did I put my sunglasses…
The scientifically impossible I do right away
The spiritually miraculous takes a bit longer
Thanks a lot guys. I really appreciate the kind words and encouragement! It means a lot to me.
No problemo holmes.
I’ve only just recently started to read your post, thanks to fairlane.
I am very interested in countrywide because I have a mortgage loan with them on some investment property. I am also considering them for a loan on and apartment unit I wish to purchase.
B,
You have been tagged
I guess you saw the announcement today that Countrywide is going to start laying off people? That’s funny, just two weeks ago they were saying they were going to hire more loan officers. What a bunch of liars.
They are not lying, they “misspoke.” It was an “accident.”
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