Thinking Right

By TW

August 9, 2007 8:56 AM | Link to this

lots of soldiers dying, Jim…where are you media?????? where are you America???????

By jbmlaw

August 9, 2007 8:59 AM | Link to this

Good morning all. I respectfully suggest that Jim coyly fails to identify the true bad guys in the overheated, and now failing, mortgage markets – FNMA and FHLMC. Using the taxpayer’s dime, these federally chartered corporations brought in illusory earnings, selling “government” bonds with inadequate (and arguably false) disclosures, while paying themselves ever-larger bonuses for their “achievements.” The market losses – and the apparent criminality - in these government corporations greatly exceeds the despised Enrons and MCIs of private industry. But, because these were noble government efforts, there will be no punishment.

As to Jim’s thesis, certainly there is no government scandal so great that the LePetomaine collectivists will not legislate to restrict behavior among the innocent, to “protect their phony-baloney jobs.” Conservatives are not deceived.

By @@

August 9, 2007 9:00 AM | Link to this

I share your fears Jim.

Clinton Seeks Aid for At-Risk Homeowners

By Redneck Convert

August 9, 2007 9:10 AM | Link to this

Wooten is Right. People need to pay cash for the place they live in. Like I done with my trailer. I saw all kind of Those People buying houses and being all uppity. I guess this crunch will fix them. They can just move back to the city and be with their own kind.

Lenders need to lend to good white Christian conservatives. The kind with Fambly Values. It ain’t a Fambly Value if just anybody can buy a house. The trash and libruls need to live in apartments and rent. I hope all the cos. that lended money to the trash just go broke. Its what God intended. Us good Christian conservatives get to live in our own place because we are Righteous. People that ain’t Righteous need to rent from us.

Anyway, there ain’t much to argue against in Wootens column today. People need to live in their own class, and that’s all there is to it. If God wanted everybody to live in their own place we would of been borned with a little house that growed up with us. Instead of being born buck nekkid with nothing. God just made things so that the Righteous get all the good stuff and the trash get to bow down before us. Only they don’t, and that’s the problem we have in this world. We need to get back to the way things was 60 years ago or so. When people knowed their place and stayed in it.

By rarringt

August 9, 2007 9:17 AM | Link to this

Good morning all,

Interesting column, Jim. In keeping with the generally political nature of your writing, seems to me that the 90’s were characterized (and criticized) as symptomatic of social irresponsibility. You know, “if it feels good, do it,” and all the other claims attributed by Right Thinkers to the Clinton Era.

Now comes evening on the Bush era, which seems to be increasingly characterized as one of fiscal irresponsibility. As you mentioned, IO and “creative” mortgages push off responsibility into someplace far into the future. The same can be said for the budget (those tax cuts expire at the end of the decade, and the deficit will still be there), and of course for Iraq (‘nuff said).

I suppose I could sit back and blame this on Bush as quickly as you might have blamed things on Clinton in the prior decade. But the truth is, I blame myself. And you. and the rest of us.

Clinton and Bush, at the end of the day, are Americans, same as us. We allowed ourselves, through graft and greed, to get to this point. And only by assuming some personal responsibility for our fiscal and social shortcomings are we really going to make any progress forward.

Government is good for what government is good for, and we have been discussing what that should be since 1783. But really, it’s up to us.

By The BlogFather

August 9, 2007 9:20 AM | Link to this

Why is home ownership the American Dream? What, people in other countries dont have homes, or dreams? This is what is wrong with this country, we preach that people of other countries live in abandoned out-houses because they dont have ingenuity or a work ethic. This personal-responsibility mantra is taken to mean that we all can be millionaire entrepreneurs if we work hard and think outside the box.

If that were possible, then we would have a 300 trillion dollar economy. 300 million americans X 1 million dollars.

It’s ridiculous. The only way capitalism works for the handful of people that it works for is through fraud, corruption, and pyramid-scheme-disquised slavery. The american dream is truly the vestiges of the antebellum south, and you can have it.

It’s time we took our country back from the evil slavetraders folks. First with speeches, then with marches, then with the ballot!!!!

Let them try to Diebold our azz!

We’ve got a country to save, and a world to convince.

Join me. I need all of you to change this mindset. The first thing we kill is the american dream. It’s a literal lottery and a lot of nonsense. It’s a fairy tale. We dont have the one true god with the one true democracy or the one true economy.

We are sharing this planet with 5.7 billion other people. It’s time we grew up and admitted we are just people and not the millionaires-in-training overlords of the planet.

By Dennis

August 9, 2007 9:26 AM | Link to this

Mr. Wooten has written an interesting article. But, just put the right words in the right places and the truth of the matter comes out.

“Running the U.S. government requires personal responsibility…thrift…contingency planning and all of the other qualities that build financially-stable [government].

“This [prresent] cycle [has] taught irresponsibility. It taught [big business/corporations] to think of [government] as a lottery ticket: Put down the dollar and hope for the big payday [i.e., big tax breaks].

“It taught [corporations] to grab a lifestyle they couldn’t afford and then to think of themselves as victims when the crash came.

“It taught [corporations] that [they] didn’t need to save for a dream because [they]could fake the paperwork to make it happen.

“It taught precisely all the wrong lessons.

“My great fear now, however, is that somebody in Congress will decide it’s time to intervene to “save” borrowers or lenders.”

What’s new, Mr. Jim, what’s new? It’s “the American way”. And if government didn’t bail out these mismanaged corporations, you’d be screaming about that.

“Now the door’s closed…Good. Sanity’s back.”

Not quite, Mr. Jim, not quite. Your boy, George W. Bush, is planning another big round of reduction of corporate taxes before he leaves office.

And I’ll bet you’ll be a cheerleader for that.

You don’t have to be a blind conservative not to see it, just an ignorant one to deny it.

By Anonymous

August 9, 2007 9:48 AM | Link to this

Stand by for the inevitable free-marketeer mantra “Corporations are better than you, they don’t pay taxes anyway.”

A routine smokescreen to push for more favoritism toward corporations as the true first-class citizens of our great society.

By kkk

August 9, 2007 9:54 AM | Link to this

The fat cats have run away with their profits.Some mortgage companies have been sold(Federal home loan) and the shareholders are safe.

What happens to the poor borrower who was lured to buy using some of these exotic schemes,THEY LOSE

And Jim says GOOD!!Now the door’s closed and a brutal market is eviscerating lenders. Good.You conveniently leave out that the **CONSUMERShave been eviscerated as well and they bear the brunt because they are the weaker party here. What kind of heart do you have to think this is GOOD?!!!

By deegee

August 9, 2007 9:58 AM | Link to this

We are taking sides in the civil war and it ain’t with Al-Maliki. Twenty four billion in arms to Saudi Arabia and an ally-ally-in-free for Sunni insurgents/freedom fighters and it’s just a matter of time before the Sunnis tell us when we are leaving Iraq. US historians will remember the war in Iraq, “We came, We saw, We decided the Sunnis weren’t so bad after all.” They didn’t exactly train the Army brass for this in West Point so God bless them all.

http://www.msnbc.msn.com/id/20188364/

By Dusty

August 9, 2007 10:11 AM | Link to this

Well..Jim writes a good piece noting that control of personal finances is the start to home ownership, not make-it-easy mortgage companies.

Right away, liberals pipe up: Phony Redneck throws in some bigotry with the idea that “people need to live in their own class.” He tries to make believe that he is a conservative.

rarringt softly blames Bush but tempers it with “I’m guilty too.”

Another bigot still fighting the Civil War proclaims that it is time to take the country back from evil slaveholders.

Dennis, of course, looks into his crystal ball and declares that Bush is going to plan another round of reduction of corporate taxes before he leaves office. And Dennis is the first to tell you before he makes his next liberal loaded prediction.

But @@ kindly points out an article that shows how the biggest liberal of all, Hillary Clinton, is going to solve this problem. Just round up a billion or so of TAXPAYER MONEY and start another round of Buy Lose Buy Lose for Americans who cannot yet afford a home of their own but don’t want to WAIT!

That’s the liberal way. If you can’t afford it, the government should furnish it.

By Southern Democrat

August 9, 2007 10:23 AM | Link to this

Good morning, all! I hope that you are all doing well. I have returned from some extensive travel for business and pleasure and had to laugh at the column today. It is good (sad?) to know that things haven’t changed one bit around here.

Dennis states many of my own beliefs more eloquently than I could have… kudos to you.

Mr. Wooten, of course, overlooks several factors. His touting of home ownership as the “American Dream” and listing its benefts (reduced crime, community ties, etc.) completely undercuts his Draconian, “Those borrowers got what they deserved,” attitude. It also overlooks the fact that hundreds of small corporations (we’ve seen their ads) hoodwinked less-sophisticated buyers into believing they could own a home w/o saving for a down payment and for what they were paying in rent, conveniently forgetting to note the ARM, the property taxes, and other obligations that came with the mortgage. Finally, our fair state of Georgia has some of the worst foreclosure laws imaginable.

On a side note, the commercial mortgage backed securities that were passed around, packaged, and sold are a symptom, not the cause of any current or prospective economic downturn.

As I’m sure Jbmlaw would agree, the private equity firms and hedge funds (large buyers of CMBS) act as a safety valve on the market and help to spread risk. We have an uncomfortable situation where Sarbannes-Oxley has created a hyper-regulated equities market while the debt market is virtually lawless. There needs to be a reduction in regulation of the equities market and SOME policing of the private/debt/hedge fund markets (20% undisclosed fees? come on!)

By Dennis

August 9, 2007 10:39 AM | Link to this

By Dusty August 9, 2007 10:11 AM | “Dennis, of course, looks into his crystal ball and declares that Bush is going to plan another round of reduction of corporate taxes before he leaves office. And Dennis is the first to tell you before he makes his next liberal loaded prediction.”

Dusty, this one was an easy crystal ball. Have you checked the news lately?

You don’t have to be a blind conservatiave not to see it, just an ignorant one to deny it.

By BS Aplenty

August 9, 2007 10:47 AM | Link to this

Jim, at the risk of sounding overly sycophantic, I agree with your conclusions.

The Subprime/Alt-A lending was to lesser creditworthy individuals and the credit problems should have been forseen in the industry. Let the free market rule.

The opportunity for borrowers was just that - opportunity. This type of lending is no more an abuse of the consumer that the lottery, alcohol, tobacco or gun sales (yes, that’s the ATF trifecta). No guaranteed outcomes in this country just opportunity.

P.S. Who on the editorial board let one of the former members of “Abba” write an opinion piece on socialized healthcare. Jim/Cynthia are we having difficulties drumming up informed, intelligent guest columists from the socialist countries?

By JK

August 9, 2007 10:55 AM | Link to this

My great fear now, however, is that somebody in Congress will decide it’s time to intervene to “save” borrowers or lenders.

Mr. Wooten, I brought up a similar issue up in 2005 when Congress was busy passing “urgent” bankruptcy legislation to protect an extremely profitable credit industry, (and screw the most vulnerable among us) on the urging of its lobbyists, under the guise of “personal responsibility.” I even discussed it with my weasel congress poser who of course rolled right over on Brother Bluto’s orders.

If there was in fact a credit crisis, (not indicated by CitiBank’s soaring profits) why weren’t the lenders encouraged to police their OWN bad policies, like sending credit cards to jobless college freshmen? (Answer: predatory lending rates are profitable.) Why didn’t the bankruptcy legislation pertain to corporations in addition to individuals? (Answer: America is run by corporations.) Why didn’t Congress make distictions between shopoholics and Nordstrom addicts, and those whose assets were wiped out by medical catastrophe — nearly 50% of all filings? (Answer: Broke families don’t contribute to GOP campaign funds, so why should they care?)

But I applaud that you jump on the bandwagon now toward actual responsibility in lending, to the extent that’s what you’re actually promoting.

By Dusty

August 9, 2007 11:05 AM | Link to this

Sure, Dennis, I read the news but no overtly political ones if I can help it. The AJC is about as far left as I go.

But do tell me why you find it necessary to mention the future of corporate taxes/Bush on a piece about home buying? Buyers cannot think for themselves?? What is your comment on Hillary’s supper rescue plan with taxpayer dollars? You like handouts? Do you ever read anything but Democratic news flashes?

Dennis, you are so predictable and so repetetive that we know where you stand without even reading your posts. Try something new for a change.

Southern Democrat,

Could we boil down your eloquent and educated but partisan political piece to a few words.

The sky is falling and innocent gullible homeowners are being duped by evil companies which should be regulated by the government but are not because this Republican administration is forever negligent and what we need are good handout Democrats.

Sound OK??

By Dennis

August 9, 2007 11:10 AM | Link to this

By JK August 9, 2007 10:55 AM “But I applaud that you jump on the bandwagon now toward actual responsibility in lending, to the extent that’s what you’re actually promoting.”

If you believe he’s calling for responsibility in the corporate world, I’d like to sell you the Great Wall in China.

You don’t have to be a blind conservative not to see it, just an ignorant one to deny it.

By @@

August 9, 2007 11:25 AM | Link to this

I’m seeing a lot of leftists posting about the “poor and unsuspecting” victim in the subprime lending fiasco.

Please answer this question. What makes the poor unsuspecting individual a victim when they repeat the same mistake again and again?

Case in point. Lady buys house near me but never moves in. Two months after her initial home purchase, she buys another house nearby that is in foreclosure, but moves in there. She never makes a mortgage payment on either house. Two years later, and after the house near me and my neighbors has fallen into disrepair, she’s evicted from both houses due to mine and my neighbors efforts to expose her for what she was. She was a scam artist taking full advantage of the subprime lending practices.

I guarantee you she got one more scam in before they shut the lending doors on this poor victim.

Redneck Convert:

Some of Those people are my neighbors and WE have all joined forces to defeat the poor victims.

Why? Because my neighbors, your Those People have worked hard to get to where they are and resent Those People who are just along for the ride.

Personal ownership brings the conservative out, even in Those People.

By The BlogFather

August 9, 2007 11:28 AM | Link to this

What is the mission of the Surge?

Anyone.

Describe how our mission changes if Al Queda in Iraq is destroyed entirely by the Surge.

Anyone.

I doubt any of you here on this blog are military analysts, or geo-political einsteins, but maybe this will get you thinking.

Think.

By BS Aplenty

August 9, 2007 11:44 AM | Link to this

Only 13% of Subprime mortgages are presently past due on their payments. In mortgage banking terms that’s a lot, but, that also means 87% of the dollars loaned to less creditworthy borrowers are performing as contracted. Eighty-seven percent of low credit quality borrowers got an opportunity to purchase a home and are now making the most of it. Congratulations fellow homeowners.

To you liberal whiners, just repeat after me: “the glass if 87% full, the glass is 87% full,…”

By getalife

August 9, 2007 11:49 AM | Link to this

Not to worry, w will cut corporate taxes to fix it.

The market will go back to 10,000, it is way overpriced.

“China dollar attack would be ‘foolhardy’ : Bush

President George W. Bush on Wednesday said China would be “foolhardy” to attempt to push down the dollar in retaliation for US pressure over Beijing’s alleged currency manipulation.”

Pot to kettle.

The so called “superpower”, bogged down in another third country failed occupation paid for by borrowing a trillion from a communist country who is using this trillion earned from us to build up their military.

“Foolhardy”?

More like idiotic.

Geez.

By Southern Democrat

August 9, 2007 11:52 AM | Link to this

Ahhh, Dusty,

Clever as always. I worked in this industry (CMBS) for 2 years before I switched to litigation. Basically, I workeed for a firm and we represented Bear Stearns, J.P. Morgan, GMAC, Wells Fargo, Morgan Stanley, and several others as lenders to corporate borrowers… these mortgages were then packaged into the CMBS. I got to know one V.P. at Bear pretty well and he used to talk about how these transactions were so easy and virtually risk-free for the banks, but the packaging of consumer mortgages was what was truly lucrative for those that could stomach it (high risk, potentially high returns) and that as that market expanded, risk would have to be pushed back onto the borrowers.

What happened, however, were predatory lenders came and not only forced sub-prime lenders into almost unconscionable mortgages, but would then offer home equity loans to strip them of any cash value or would offer reverse amortization whereby borrowers owe more than the value of their homes and pay less than interest only. It’s basically applying the concept of a check-cashing or paycheck usury loan to mortgages, but the result is that instead of placing a lien on your car or garnishing your wages, you lose your home.

Now combine the above with the new Bankruptcy Code and you have a perfect storm whereby a cooling economy that was a surging wave crashes onto the lower middle class.

I’m not asking for handouts and I do not think this is a partisan issue, but I do think that this is an issue where the government can and should offer assistance through bail out loans and policing of sup-prime lenders.

By deegee

August 9, 2007 11:52 AM | Link to this

“Homeowners don’t burglarize their neighbors and, in general, they behave in ways that preserve the value of their investment, a cornerstone of good citizenship.”

That has to be the snoddiest thing I have ever read from Wootang. As a homeowner that lives in the northern burbs I can tell you that homeowners’ unsupervised children burglarize plenty and do as much to run down property values as do foreclosures.

An adolescent can get a credit card nowadays. Easy consumer credit is the American way. No surprise that the market demanded easy mortgage credit and the industry was happy to comply. Everyone with a 401K and a pension is going to be affected during the shakeout of the US bonds and securities market. I wouldn’t be so smug right now about who is getting hurt by this.

By jm

August 9, 2007 12:07 PM | Link to this

Of course, Mr. Wooten glosses over the other effects of playing “fast and loose with easy money”. The proliferation of second mortgages and mortgage refinancing to take advantage of “gains in equity”, which also allowed people to “live beyond their means”. With real estate prices falling in some markets, you are now starting to see people owing more than their houses are now worth.

The economic expansion that W the incompetent likes to brag about was driven more by cheap credit than any tax cuts. The prime driver of the economy has been consumer spending but when the average consumer is spending more than they make (average savings is below 0%). Also consider most of that money has been going overseas (that massive trade deficit), there is a chance that things might get a little dicey.

Face it, we are a debt driven society.

Of course, economic projections are like tax returns. You can have 20 different experts look at the same data and come up with 20 different results.

By jbmlaw

August 9, 2007 12:11 PM | Link to this

Dear Southern Democrat @ 10:23, welcome back, and you correctly read my thoughts in your final paragraph (except I would have used language like, “SOx is killing us.”) I technically agree with your argument, “the commercial mortgage backed securities [meaning FNMA and FHLMC, which I criticized so strongly, earlier] that were passed around, packaged, and sold are a symptom, not the cause of any current or prospective economic downturn.” I think the downturn in mortgages, subprime and others, will have no meaningful effect on the economy, so I agree with your argument. However, I believe the federal agencies served the same role on the present mortgage industry problems as offered by a “fence” for the burglar’s product.

Dear TW @ 8:56, http://www.opinionjournal.com/editorial/?id=110010438 and http://www.opinionjournal.com/columnists/dhenninger/?id=110010444

Dear Dennis @ 9:26, your analysis is great until you get to your silly argument about Jim Wooten favoring government bail-out of corporations – that is strictly big-government philosophy – and your illogical conclusions thereafter. You seemingly argue that because government trains business to behave in response to incentives, we need to increase the control the government holds – isn’t that exactly backwards? As to your silly note about President Bush “planning another big round of reduction of corporate taxes,” would that were so – in fact the “Progressives” will enact the largest tax increase in the history of the world by merely failing to renew the expiring 2002 tax cuts. Of course, you would deem that “intelligent economic policy,” at least until the economy collapses in 2009.

Special note to Analchord @ 9:20: the trivia question has a human answer. Sheb Wooley, composer and performer of the notorious “Purple People Eater,” married the older sister of, and introduced to Nashville, Roger Miller (composer of Disney’s “Robin Hood” and Broadway’s “Big River.”) You may recall the Roger Miller had several amiable and loopy songs himself. We have not abandoned Schubert in the jbmlaw household, but we have recently embraced the oeuvre of Roger Miller. As one who celebrates humor, I thought you would wish to add this background to your database.

By stuffedshirt

August 9, 2007 12:16 PM | Link to this

speaking of good things, I hear the ajc circulation is down so low that the advertising rates are dropping dramatically. now is the time to fire the dead woods, aka the wootens and their ilk

By harold

August 9, 2007 12:27 PM | Link to this

the reason tehy is shipping all these arms to saudi arabia and stuff is to they can “commit brutal atrocities” and need invaded in 25 to 30 years after everybody (here) forgot we were wholly reponsible for the situation

it’s the republican long term plan. just like we did with iraq!

By getalife

August 9, 2007 12:29 PM | Link to this

China’s market is a sure winner.

The dollar is a sure loser now that they own us and can nuke our economy.

Invest wisely.

By YaKnowDaDeal

August 9, 2007 12:33 PM | Link to this

By Jim Wooten | Thursday, August 9, 2007, 08:25 AM

The Atlanta Journal-Constitution

My great fear now, however, is that somebody in Congress will decide it’s time to intervene to “save” borrowers or lenders.

Jim, you can bet your republican azz that if congress rescues anyone it will be the dumbazz big business lenders. You know. The ones that always get the bailout for imbecilic business practices.

By Jim's a Cherry Picker

August 9, 2007 12:34 PM | Link to this

Hi Jim,

I’ve been busy at work. Sorry for leaving you hanging recently.

Re the mortages, I’m with you. Problem is that most of the loans that failed were written by unscrupulous lenders who were taking advantage of borrowers’ general lack of understanding of the situation.

Then, as you say, they passed the buck on to investors.

So where the rubber hits the road here there is absolutely no incentive for lenders to act in a responsible manner.

They got theirs.

Just like all those contractors who are taking money meant for Katrina and Iraq.

By deegee

August 9, 2007 12:45 PM | Link to this

Don BlogFather, It appears that the mission of the Surge is to get the Iraqi Sunnis to start giving up the goods on the Syrian/Saudi/Jordanian/Egyptian/etc./etc. Sunnis in Iraq. We will know in September if the Surge is working if the census says that Al Qaeda is moving back to Afghanistan where they were before we drew them into Iraq so that we could fight them there.

By The BlogFather

August 9, 2007 1:18 PM | Link to this

Wrong.

By The BlogFather

August 9, 2007 1:26 PM | Link to this

Issue Two! The stock market is roiling back and forth. Why? Jim Wooten? “uh, the credit crunch?” WRONG!

@@? “uh, er, women drivers?” WRONG!

Buy Danish? “uh, er, I dont know, maybe normal market correction after a huge rally?” WRONG!

WRONG WRONG WRONG.

The answer is: Nobody knows.

By Dusty

August 9, 2007 1:48 PM | Link to this

Southern Democrat @ 11:52

I had posted a lovely nugget of golden praise to you but the AJC server here was so loaded with 31 comments that mine was dispensed to the ether waves along with Endeavour.

Nevertheless, I am impressed by your credentials in the world of all those things you mentioned. My banking experience is pretty much limited to checking, savings and those darling CDs.

Then I confessed that we bought an old house in the architectual style of cheap and quickly paid it off with only many years of rehab awaiting. So my mortgage experience is “lite”.

Since my profession is scientific with many controls, inspections, regulations by scientific bodies of like nature (in order not to kill patients), I wonder why the bankers and lenders are not into regulating THEMSELVES? Must the government always be the policeman?

In a fit of something less serious I mentioned that I had seen “It’s a Wonderful Life” and realized that honest bankers were the only resource to.. err.. “uninformed” home buyers.

Needless to say, I thought that honest bankers were a better solution than bailout loans of taxpayer money.

By Ray

August 9, 2007 1:56 PM | Link to this

Dittos Jim - Based on the digressing landscape of our suburbs, it’s about time we at least rethought who it is we’re ‘helping’ to move in.

By deegee

August 9, 2007 2:16 PM | Link to this

Ray, I have news for you. Someone sold their property to make room for you and your neighbors. I can guarantee you that at the time there were plenty of others around you that weren’t exactly happy to see you coming.

By Southern Democrat

August 9, 2007 2:38 PM | Link to this

Dusty @ 1:48,

I agree wholeheartedly that self-policing is the better, more efficient policy, but I think the Great Depression and necessity of establishing the FDIC showed what can potentially happen when banks are trusted too readily.

Taxpayers will pay the costs either through funding the courts or direct subsidies. One reason I like executive enforcement (DOJ D.C., OCC, SEC, U.S. Attys offices) is that, in general, the prosecutors exercise discretion when going after financial institutions and usually fine the institution and punish the individual wrongdoer through suspension or fine… this reduces the cost to the taxpayer.

Home ownership IS an important thing and I’d like to see us try to ensure that homeowners don’t go into default on their mortgages due not to their own poor decision-making, but bad luck and the malicious motives of others.

By jbmlaw

August 9, 2007 2:45 PM | Link to this

Dear Dusty @ 1:48, I think you are onto something. Bank regulation is my field. Prescription drugs are probably the only area as tightly regulated as banking. Throughout my career, the regulators have served only as cover for the unscrupulous. We would be far better-off with less government-imposed regulation, in that people would be more self-protective if they believed the government was not the fall-back. Before government became the dominant player, reputation and integrity mattered; now, finance is merely a commodity.

By jbmlaw

August 9, 2007 2:50 PM | Link to this

Dear Southern @ 2:38, perhaps you will find it unsurprising that I disagree with your well-argued post. I believe the selective enforcement of various remedies, other than termination of deposit insurance, is traditionally arbitrary. Worse, the kangaroo court system erected for determination of punishment – Administrative Law Courts, with appeal to the agency issuing the fines, and subject to court overview only on an “abuse of discretion” standard – cries out for reform. The penalties arising from the bank regulatory system serve only to impoverish innocent stockholders.

By Southern Democrat

August 9, 2007 2:56 PM | Link to this

But would you agree that, if there is malfeasance, both the corporation and the stockholders have benefited from ill-gotten gains?

By Dennis

August 9, 2007 3:32 PM | Link to this

By jbmlaw August 9, 2007 12:11 PM Dennis @ 9:26, “As to your silly note about President Bush “planning another big round of reduction of corporate taxes,”

The time is 3:25 p.m. I have purposely waited these few hours to give you and Dusty an opportunity to check (and eat your words) the latest news and see that indeed, Bush will try for more corporate tax breaks.

“Progressives” will enact the largest tax increase in the history of the world by merely failing to renew the expiring 2002 tax cuts. Of course, you would deem that “intelligent economic policy,” at least until the economy collapses in 2009.”

JBMlaw, how do you propose your government is going to pay for Bush’s financial follies? And don’t say he hasn’t spent this country into a hole.

And my source for that is non other than Bruce Bartlett, (“IMPOSTER”, How George W. Bush bankrupted America and betrayed the Reagan legacy). (Not that I was ever a fan of Reagan).

I’ve read above where you are some kind of finance/bank regulation lawyer. Seems to me, then, you ought to know better than to post some of the stuff you post.

As to the non-renewal of the Bush tax cuts, no doubt you expect the bottom half of America to pay for the war while the corporations are exempt.

Problem is, Mr. Finance Man, the bottom half of America isn’t going to have the $$$ to pay for anything.

Yes, the economy looks good right now. But how much of that is paper money and not REAL goods and services?

You don’t have to be a blind conservative not to see it, just an ignorant one to deny it.

By The BlogFather

August 9, 2007 4:10 PM | Link to this

The chinese have bankrolled Iraq War. In exchange, we agreed to allow them to send us whatever. Our imports from China are spectacular. We wipe with china, drink with china, eat with (fine) china, and xmas w/china. Never mind they are poisoning us. (Bush minds never).

BUT: When we stiff the Chinese and declare national bankruptcy, and dont pay them, they are going to come after us with everything they’ve got.

I say we nuke em now like McAuthur wanted to and Truman (the wussy) wouldn’t.

NUKE CHINA!!!!

By Dusty

August 9, 2007 4:42 PM | Link to this

Blog Father aka Analchord aka PoFo aka Idiot,

Isn’t it your nighty nite time yet?

Unless you have been eating pet food the Chinese have not poisoned you.

Nobody hates the Chinese. Maybe I will go to the Olympics there if I can find Behjing in the smog.

Truman was no “wussie”. That term applies only to liberals and he was not a liberal.

Go get some chopsticks and eat your bamboo shoots. They are guaranteed organicly grown and full of Chinese vitamins for vacuous vegans. You need all the help you can get. And give some to Dennis. He needs help too.

By DebbieDoRight

August 9, 2007 4:47 PM | Link to this

I’m ready for a little levity — enough of the bullying and pouting already!!! Enjoy the day, seize NOW, forget yesterday! Happy hour is just around the corner!!!

http://thatvideosite.com/video/1010

By Lily Toad

August 9, 2007 4:55 PM | Link to this

High schools should teach a class in how to get a mortgage, buy a car, invest, balance a checkbook, how to get the best interest rate, etc. We need educated consumers who don’t bite off more than they can chew when purchasing a home, and ethical loan officers who take seriously the percentage of an income that should be a mortgage payment. Also, when pushing an ARM, lenders should disclose what the borrower’s payment will be at different interest rates.

By The BlogFather

August 9, 2007 5:06 PM | Link to this

It sure is hot today.

By Former Georgian

August 9, 2007 5:07 PM | Link to this

Wooten, I heard one of your crooked Georgia Legislators got arrested. Something to do with mortgage fraud. It hasn’t hit the news yet. Why not? Want a hint: What was Popeye’s occupation?

By John Kenneth Galbraith

August 9, 2007 5:18 PM | Link to this

“The modern conservative is engaged in one of man’s oldest exercises in moral philosophy: that is, the search for a superior moral justification for selfishness.” - John Kenneth Galbraith -

By Henry David Thoreau

August 9, 2007 5:25 PM | Link to this

“What is the use of a house if you haven’t got a tolerable planet to put it on?” - Henry David Thoreau -

By Dusty

August 9, 2007 5:30 PM | Link to this

Former Georgian (now living in Louisiana, the crime free state)@ 5:07

Maybe a Georgia legislators did get arrested? What for? Impersonating a liberal? Now that is criminal. Throw the book at him!!

By Alfred E. Newman

August 10, 2007 8:20 AM | Link to this

What? Me Worry? - Alfred E. Newman

By WFC

August 10, 2007 9:26 AM | Link to this

Understanding real estate is not comparable to understanding quantum physics or the Heisenberg Uncertainty Principle. It’s common sense with a little technical knowledge thrown in.

RULE #1: Always expect the worst than can happen WILL happen and have a plan. My wife lost her job in 1990 but we didn’t lose our house. We had a plan.

RULE #2: Don’t worry about impressing other people. They don’t care. I’ve been a homeowner for 18 years in Atlanta’s northern burbs and have been amazed by the number of younger people who have made themselves “house poor.” If you can’t afford a house without incurring huge credit card or auto loan debt, don’t buy it! It’s not rocket science… you not impressing anyone who has a bit of common sense.

RULE #3: Don’t trust “deal makers.” For example: I was going to refinance my home about 10 years ago and a nice, personable, clean cut guy brought the papers to my house for approval. It took me about 15 seconds to burst into laughter. The refinance document called for a 4% origination fee! The going rate for origination fees is 1%. I laughed him out of the house. If you are too stupid to figure this out, you are too stupid to own a house.

RULE #4: Don’t believe everything you see on TV. There are hundreds of “get rich quick” real estate schemes. Have you ever considered: if they really consistently worked, wouldn’t their advocates be out doing that rather than trying to sell you a kit for $495? Duh!

RULE #5: Money talks, BS walks. You’d be amazed at the number of people who want to talk to me now. Why? $$$ I’m a retired teacher and certainly not rich. However, I can write you a check for $100,000 without batting an eye. Building wealth is powerful.

RULE #6: PATIENCE! I’m 57, it took me awhile. My # 1 virtue? I did not care about what other people thought. Vices? Many… but that’s another conversation.