There is absolutely no way anyone could have ever predicted that toxic liar and ninja loans, like the note this mortgage is based on, would blow up right? You see on Wall St. when you have a Ivy league MBA, kids in private school, are on a 3rd marriage - now to a trophy wife and your 6 figure bonus is hanging in the balance (not to mention said trophy wife) on whether you sell that worthless yet AAA rated paper to that Scandinavian pension fund. Hell, most on Wall St. would give their mother a cyanide tablet for the bonus let alone sell some toxic paper to some retirees overseas. Heck, nobody died right?
So read the Post's article. Oh, make sure you catch the gem of a quote from one Thomas A. Lawler former senior VP at Fannie Mae:
“How is it people can stay in a house for five years without ever making a mortgage payment?”
said Thomas A. Lawler, a former senior vice president at Fannie Mae who now runs his own consulting firm in Loudoun County.
“That’s a screwed-up process. It’s an example of how the process is broken.”He ought to know. This is the same Fannie Mae that was one of the chief enablers of the housing bubble. The same Fannie Mae that couldn't file financials for years under Franklin Raines who then exited the company with tens of millions in bonus and compensation for this unmitigated disaster. The same Fannie Mae that keeps on losing billions and asking for yet more billions from the U.S. taxpayer. Yes, that Fannie Mae. Lawler is kinda like Prefect Rick in the movie Casablanca who is shocked to find gambling going on here, as he collects his winnings.
No readers you cannot make this up. But it gets better I mean you have to just expect more from the '2+2=6' crowd who after bringing you the tech bubble and the housing bubble is now bringing you the social networking bubble.
But of course underlying fundamental, say like the details of this article have no bearing on the broader economy. At least, that's what the shills that inhabit Wall St., want you to think. Gurus say like Laszlo Birinyi who, as evidenced by this piece, think that We're Underestimating the Economy.
Yes this couple who didn't pay their mortgage for 5 years and yet lived in it rent free is a one off isolated event and not representative of the broader housing marke which must be in recovery because the shills say so. No the Ritters are the proverbial needle in the haystack. Yes, extend and pretend, delay and pray by the bailed out to big to fail banks is a figment of some idiot bloggers on the Internet and their wild imaginations. Sure it is. Just like dotcoms with no earnings were the next Microsoft, sub prime was contained, and Jon Corzine has absolutely no idea where $1. 2 billion in customer funds went. Yes, there is always just 1 cockroach.
But of course worry not as I, yet again, exaggerate when I call this the Great Ponzi. Fundamental issues like this will of course have absolutely no effect on fantastic companies and their earnings. Say like $AAPL and their sales right? I mean investing is easy, just sit back and buy more AAPL on the dip. I mean the market is going up and that means the economy is great, right?
Sure it is.
Wall St. is inhabited by salepeople not advisors, there is an ENORMOUS difference, and cares not why the market is going up, they are just happy it is going up. Just as in 2000 and yet again in 2008 market participants ignored why the market was going up and simply focused on the simple fact it was going up as evidence all was well. Just as a seriously ill patient or heroin addict (aka debt serf) can function, often geting up to get another hit, they appear well for a time even thought they extraordinarily ill. This is the reason then, and will be again, as to why they are in no position to understand why it would go down and. Oh yeah, that and the fact that being in cash doesn't pay a fee, a commission or a bonus.