Thursday, April 24, 2008

Elizabeth Warren on the FHA Expansion

link
I seem to be receding into puberty as I approach middle age, tomorrow now. I pick out a couple of personalities that I crush on -- Elizabeth Warren, Nouriel Roubini, Al Gore, Bruce Schneier -- and just repeat whatever they say. It's appalling to watch this, but I don't seem to be able to help myself. I'm just going to let it happen. It's probably just a phase.

Anyway, the point of the linked post by Dr. Warren is that what's happening now is that mortgage industry nogoodnicks are leaning on the same lawmakers that brought you the depredations of the 2005 Bankruptcy Bill, in order to Bear Sterns the mortgage meltdown into taxpayer pockets by expanding the Federal Housing Authority. I just now coined that use of 'Bear Sterns' as a verb -- let me know what you think.

Well, that may not be the point. But, it was my takeaway.

1 comment:

Dusty The English Major said...

Clever grammar. I approve. Note no one has put together a list of factors leading up to the incident...

Federal Reserve Chairman Ben S. Bernanke testified before the Joint Economic Committee of the U.S. Congress that there most likely would have been "severe consequences" to the default of Bear Stearns, leading to a possible systemic financial crisis. To date however, Congress has not appointed a commission to study the events and causes leading up to the incident, nor taken any action to prevent future crises from occurring.