I for one appreciate your summaries on these issues due to the fact that I do not have the depth of knowledge that you do in these areas, and do not pretend to be a paper champion like so many who read a few things then start challenging you. That is generally embarassing to the challengers.
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Yes, it’s best to leave these things to the ‘experts’ as that has worked out so well over the last nine years. I have to laugh at Dave when he tries to add weight to one of his arguments by saying something like ‘and all my banker buddies agree as well’.
Back in 2005, all of the banking establishment agreed that making 110% loans to illegal immigrants based on stated income of $300K per year was a good idea. That worked out real well.
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Well, my “banker buddies” weren’t making these ridiculous loans, Breeze. As I’ve attempted to point out here many times – and as even the bears such as Roubini, et al. acknowledge – the vast majority of the banks in this country – by charter as opposed to by asset concentration – did not engage in the crazy lending you’re referring to, which is why they’re not going to fail. You make it sound as though I was sipping champagne on a yacht in the Caribbean with Mozilo, Lewis, Greenberg, and Prince back in 2005. I don’t know these folks. Never did business with them. I’m down at the community bank level. I wrote a piece on the housing bubble for a well-known financial website back in 2003, so I share much of your outrage at the situation. Again, I know it’s inconvenient for your argument, but all bankers and bank investors are not in the same boat. As much as you want it to be the case.
