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hypocrite:

-noun

1. a person who pretends to have virtues, moral or religious beliefs, principles, etc., that he or she does not actually possess, esp. a person whose actions belie stated beliefs.

2. a person who feigns some desirable or publicly approved attitude, esp. one whose private life, opinions, or statements belie his or her public statements.

If the shoe fits...

Why are you not crying for a deficiency judgment aimed at Morgan Stanley. How about a 1099-C?

What say you about Morgan Stanley’s $10 Billion Bailout?

Ha Ha...what a joke!

And as part of being old-fashioned, you’ll also not take on debt you cannot repay. That goes hand-in-hand with your attitude on having a personal obligation to repay your loans.

You also wouldn’t take on excessive debt if the bank were waving “no-doc” loan papers under your nose either, right? Even if the person waving them were a cute blond with a 36-C chest in a fluffy pink sweater with a plunge neckline?

Of course not. We’re immune to such nonsense when taking out a loan.

We’re also in the smallest of numerical minorities in the US now.

The bankers constructed carefully programmed risk models based on people with our type of thinking, ie, we repay our notes, but then again, we take on only that debt which we can repay. Additionally, the statistics used in constructing these models included default rates from people who put down 20% on a purchase, lived in stable two-parent households, etc.

These models were constructed with lots of pre-2000 data, but *applied* to the grifter culture that has arisen since the late 90’s, onto loans made to people who lied about their incomes, their other debts, or simply were never asked to reveal these issues at all. The loans were then packaged, sliced and diced with more mathematical assumptions and models - starting with one that substantial real estate price declines were only regional in nature, that they didn’t happen nation-wide at the same time... (look up “gaussian copula” for some of the theory behind this idea), rated “AAA” by ratings agencies using similar models to the one above (ie, based on people like you and me) and sold off to unsuspecting marks around the planet.

Why?

Because some sharp Harvard MBA’s (both in and out of government) decided that if they made loans to ONLY those people who repay them, like you and me, there wouldn’t be much of a housing market. There would be no housing boom. Because we don’t re-fi every other year, there’s be no steady stream of RMBS paper to sell into the debt markets. There would never have been all those jobs for mortgage brokers, and appraisers giving out phony price estimates in absurdly inflated markets. There wouldn’t have been ANY job growth following the 2002-2003 recession (if you go back and take out the housing boom, there was almost no job growth during the Bush administration).

And so on.