I confess, I fell prey to this kind of thinking. Back in 2003-2004, when I was a mortgage loan officer for Countrywide Home Loans, I witnessed the torrent of new mortgage product issued by FannieMae and FreddieMac, and I wondered, "Are we so well-off, as a nation, that we can now afford to abandon century-old standards for lending?"
Actually, we weren't that rich then. We just had the delusion of wealth that is created during the short-lived period while we were maxing out our credit cards.
That was an intentional part of the “redistribution” plan of communists and “progressives.” They knew the borrowers would not be able to pay the mortgages. They knew they could use the argument, “we can’t throw people out of their homes” successfully. They knew the country would bail out the borrowers (and the lenders) at the expense of those who are a lot less selfish and who manage their own finances responsibly.
Remember folks, it is no longer “redistribution of wealth.”
They are now taking from those who are just getting by in order to buy votes from the parasite class.
It is now “redistribution of earnings.”
I wonder if I would have qualified for my first home loan had those time-honored standards to ensure risk is shared equitably between lender and lendee had been in place. I certainly would not have been able to gather 20% before home prices went on their precipitous rise.
Of course, those lending practices and the housing bubble are not independent events, and I didn’t overbuy. Despite being out of work for a year, I’m still here and have never missed a payment.
Fiscal prudence is simply something lost on this generation, and it’ll take a 21st century Greek tragedy on our shores to make people understand that the “worst economy since the Great Depression” will involve hardships beyond scaling back from Applebee’s to Mickey D’s.
Once again, Steyn nails it. Sadly, this stupidity is not the exclusive disease of overt liberals. Remember “compassionate conservatism” and “a kinder and gentler nation”?
Perhaps staring national poverty in the face will force us to examine how and why our nation became so wealthy. It was not because of liberalism or any other variety of stupidity. Rather, our wealth as a nation was built on Christian values, hard work, intelligence and a sound constitution.
Excellent title...bkmking for later
Well, Countrywide was making a fortune writing “toilet paper”, so I shorted them in 06, along with WAMU, and several others.
Liberalism is a luxury. In the same way the hippies that protested in the 60s had plenty of jobs to chose from if they really needed to work — times were good. In bad times you worry about your next meal. With the poor it is no longer a life and death struggle in North America as it is in Africa. Your next meals are provided for. But all this is never enough to a liberal, especially a “poor” one. Despite their ipods, cell phones, money cigarettes, beer and cable... they are hard done by. Our culture shows them people like Brad Pitt and they think that they are poor in comparison to Brad and not some native in Africa. And that is such an affront to their pride. Therefore, more entitlements, more money throw at them for being the victims, more tax the evil rich. This attitude is a luxury and will drive the people who give to the poor through their taxes into the poor house.
For years I've said the same about 'natural' and 'organic' foods, I just used the words wealthy instead of rich.
And, from the agricultural standpoint, we still are wealthy enough to spend money stupidly on 'organic' and 'natural' foods.
I hope that doesn't change, as I have friends and relatives making bundles and living high taking easy money from foolish buyers.
Bump
I want to know where the hells all this money going?
Somebody has to be on the receiving end. Four, five, six big banks? Who is holding the cash?
Will it be too late by then?
No need to read beyond that line. That says it all right there. You should reward good behavior (marriage, work, integrity, honor) and punish bad behavior (laziness, fraud, banks that ignore risk, people who damage their health). Of course, I did read beyond that line. I love reading Steyn. Thanks for posting.
Afro-Marxist economics, no doubt.