One more thing, which is that while the MESS may have started with subprime mortgages, it didn’t END there. It has been leveraged tenfold into all kinds of bullshit exotic financial engineering products, CDS, hedge, derivitives, etc., etc. that are simply completely untenable in a down economy with depreciating assets. The house that leverage built is imploding. The financial/banking industry is principally to blame for the degree of leverage in all this.
It’s quite possible Citi and BofA go into some form of receivership (nationalization) in the upcoming weeks because they are very close to insolvent. If we didn’t have a bailout, and these giant banks go under, they would take an enormous number of average, upstanding, everyday business and poeple with them because these BANKS GOT TO HOLD ALL OF OUR MONEY and they LOST IT. They would go under and take us with them. That is the BIG ISSUE, and that is why there is a bailout.
Where exactly is the OUTRAGE about MORAL HAZARD in the financial industry? What exactly should Santelli say at that point? “Why can’t Citi and BofA can’t just pay their bills, like the rest of us upstanding homeowners?” Screw this Santelli guy. I have zero tolerance for some jackass trading floor reporter becoming an Internet sensation blasting homeowners when the FINANCIAL INDUSTRY is the ABSOLUTE EPICENTER of this mess.
Wish I could think of a joke here. Someone help me out…
