[patientrenter]

As long as the SIPC rules are not changed as a special accommodation for Bernie Madoff investors with powerful connections, I think this is actually a play with a satisfactory ending. People who were greedy – planning to get something for nothing – will pay a high price. It’s a rough but fair form of justice.

So far, we’ve had nothing but examples of people who planned to get something for nothing using some scheme, and then got bailed out so they didn’t have to bear their full share of the loss when the scheme failed.

There are stories in the media about sympathetic “little people” who lost all to Bernie Madoff’s scam. But most of the money lost came from very well-off people, and most of the investors had many other investments. Also, Bernie Madoff’s fund was open only to sophisticated and wealthy investors, the people allowed by the SEC to invest in hedge funds. Anyone who got in who was unsophisticated or poor was ‘sneaking in’ when they shouldn’t have. If someone sneaks into a vat of acid at the local factory who doesn’t work there, their relatives can’t (or shouldn’t) hold others liable for the consequences.

[patientrenter]

As long as the SIPC rules are not changed as a special accommodation for Bernie Madoff investors with powerful connections, I think this is actually a play with a satisfactory ending. People who were greedy – planning to get something for nothing – will pay a high price. It’s a rough but fair form of justice.

So far, we’ve had nothing but examples of people who planned to get something for nothing using some scheme, and then got bailed out so they didn’t have to bear their full share of the loss when the scheme failed.

There are stories in the media about sympathetic “little people” who lost all to Bernie Madoff’s scam. But most of the money lost came from very well-off people, and most of the investors had many other investments. Also, Bernie Madoff’s fund was open only to sophisticated and wealthy investors, the people allowed by the SEC to invest in hedge funds. Anyone who got in who was unsophisticated or poor was ‘sneaking in’ when they shouldn’t have. If someone sneaks into a vat of acid at the local factory who doesn’t work there, their relatives can’t (or shouldn’t) hold others liable for the consequences.

[patientrenter]

As long as the SIPC rules are not changed as a special accommodation for Bernie Madoff investors with powerful connections, I think this is actually a play with a satisfactory ending. People who were greedy – planning to get something for nothing – will pay a high price. It’s a rough but fair form of justice.

So far, we’ve had nothing but examples of people who planned to get something for nothing using some scheme, and then got bailed out so they didn’t have to bear their full share of the loss when the scheme failed.

There are stories in the media about sympathetic “little people” who lost all to Bernie Madoff’s scam. But most of the money lost came from very well-off people, and most of the investors had many other investments. Also, Bernie Madoff’s fund was open only to sophisticated and wealthy investors, the people allowed by the SEC to invest in hedge funds. Anyone who got in who was unsophisticated or poor was ‘sneaking in’ when they shouldn’t have. If someone sneaks into a vat of acid at the local factory who doesn’t work there, their relatives can’t (or shouldn’t) hold others liable for the consequences.

[patientrenter]

As long as the SIPC rules are not changed as a special accommodation for Bernie Madoff investors with powerful connections, I think this is actually a play with a satisfactory ending. People who were greedy – planning to get something for nothing – will pay a high price. It’s a rough but fair form of justice.

So far, we’ve had nothing but examples of people who planned to get something for nothing using some scheme, and then got bailed out so they didn’t have to bear their full share of the loss when the scheme failed.

There are stories in the media about sympathetic “little people” who lost all to Bernie Madoff’s scam. But most of the money lost came from very well-off people, and most of the investors had many other investments. Also, Bernie Madoff’s fund was open only to sophisticated and wealthy investors, the people allowed by the SEC to invest in hedge funds. Anyone who got in who was unsophisticated or poor was ‘sneaking in’ when they shouldn’t have. If someone sneaks into a vat of acid at the local factory who doesn’t work there, their relatives can’t (or shouldn’t) hold others liable for the consequences.

[patientrenter]

Wow!

This story just smacks you in the face. What is amazing is how each of the people responsible for ensuring the loans for the house would be repaid had no interest in making sure that happened. And apparently they still have little interest. It’s clear that everyone expects to pass these bad loans to Uncle Sam. It’s just a question of how and when. There’s no other explanation for how there was a complete loss of responsibility then and continuing apathy now.

The private lenders never figured on holding the loans permanently. Buy-and-hold buyers like FNMA and Freddie Mac and the foreign central banks figured that the US govt would step in if it all fell apart – and they were correct. Why be careful if someone else will bail you out?

I know we are all desperate to avoid the Great Depression II, but methinks the lessons that are being learned from what’s being done now to minimize the short-term pain of this recession are going to cost us a lot for a very long time. Some really nasty pain needs to have been delivered to a very large number of people, and that ain’t gonna happen.

[patientrenter]

Wow!

This story just smacks you in the face. What is amazing is how each of the people responsible for ensuring the loans for the house would be repaid had no interest in making sure that happened. And apparently they still have little interest. It’s clear that everyone expects to pass these bad loans to Uncle Sam. It’s just a question of how and when. There’s no other explanation for how there was a complete loss of responsibility then and continuing apathy now.

The private lenders never figured on holding the loans permanently. Buy-and-hold buyers like FNMA and Freddie Mac and the foreign central banks figured that the US govt would step in if it all fell apart – and they were correct. Why be careful if someone else will bail you out?

I know we are all desperate to avoid the Great Depression II, but methinks the lessons that are being learned from what’s being done now to minimize the short-term pain of this recession are going to cost us a lot for a very long time. Some really nasty pain needs to have been delivered to a very large number of people, and that ain’t gonna happen.

[patientrenter]

Wow!

This story just smacks you in the face. What is amazing is how each of the people responsible for ensuring the loans for the house would be repaid had no interest in making sure that happened. And apparently they still have little interest. It’s clear that everyone expects to pass these bad loans to Uncle Sam. It’s just a question of how and when. There’s no other explanation for how there was a complete loss of responsibility then and continuing apathy now.

The private lenders never figured on holding the loans permanently. Buy-and-hold buyers like FNMA and Freddie Mac and the foreign central banks figured that the US govt would step in if it all fell apart – and they were correct. Why be careful if someone else will bail you out?

I know we are all desperate to avoid the Great Depression II, but methinks the lessons that are being learned from what’s being done now to minimize the short-term pain of this recession are going to cost us a lot for a very long time. Some really nasty pain needs to have been delivered to a very large number of people, and that ain’t gonna happen.

[patientrenter]

Wow!

This story just smacks you in the face. What is amazing is how each of the people responsible for ensuring the loans for the house would be repaid had no interest in making sure that happened. And apparently they still have little interest. It’s clear that everyone expects to pass these bad loans to Uncle Sam. It’s just a question of how and when. There’s no other explanation for how there was a complete loss of responsibility then and continuing apathy now.

The private lenders never figured on holding the loans permanently. Buy-and-hold buyers like FNMA and Freddie Mac and the foreign central banks figured that the US govt would step in if it all fell apart – and they were correct. Why be careful if someone else will bail you out?

I know we are all desperate to avoid the Great Depression II, but methinks the lessons that are being learned from what’s being done now to minimize the short-term pain of this recession are going to cost us a lot for a very long time. Some really nasty pain needs to have been delivered to a very large number of people, and that ain’t gonna happen.

[patientrenter]

Wow!

This story just smacks you in the face. What is amazing is how each of the people responsible for ensuring the loans for the house would be repaid had no interest in making sure that happened. And apparently they still have little interest. It’s clear that everyone expects to pass these bad loans to Uncle Sam. It’s just a question of how and when. There’s no other explanation for how there was a complete loss of responsibility then and continuing apathy now.

The private lenders never figured on holding the loans permanently. Buy-and-hold buyers like FNMA and Freddie Mac and the foreign central banks figured that the US govt would step in if it all fell apart – and they were correct. Why be careful if someone else will bail you out?

I know we are all desperate to avoid the Great Depression II, but methinks the lessons that are being learned from what’s being done now to minimize the short-term pain of this recession are going to cost us a lot for a very long time. Some really nasty pain needs to have been delivered to a very large number of people, and that ain’t gonna happen.

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

It sounds like outsourcing has been a mixed bag.

Just to add some balance to the comments trashing outsourcing: The two companies I’ve worked for recently have used Indian programmers on a small scale and have been pleasantly surprised at the good quality and rapid learning. In the long run, more is planned, but in the current environment they will be amongst the first to suffer if expenses need to be reduced. (I work in the first purely private-sector industry to use computers on a large scale, so I suspect what we do is a leading indicator outside the software industry itself.)

[Author]

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