The Discerning Texan
-- Edmund Burke
Tuesday, February 17, 2009
The Idiot's Guide to the Credit Bubble
This must be read in its entirety to be appreciated.
Pure genius this is...Barney Frank, the Democratic chairman of the House Finance Committee, said Mr Geithner should not to repeat the mistakes of his predecessor Hank Paulson, who "lost sight of the rest of the country and pissed them off entirely," with his initial bank bailout.
Frank warned the Treasury Secretary that voters want to see fewer foreclosures and more bank lending to ordinary consumers before they support the rest of the financial rescue plan. "They understand the political need," Mr Frank said.
The plan will help distressed homeowners get modified loans, subsidising lenders who cut interest rates. Mr Frank said the plan would aim ensure that such householders need pay no more than 31 per cent of their income on their mortgage.
Voters want to see fewer foreclosures and more bank lending to ordinary consumers. No doubt they do. I assume they also want more sex, better cars, more holidays and yet another Rocky movie to be made. Or maybe a Caddyshack remake.
Meanwhile Kollapsnik over at Club Orlov (who lived through the collapse of the Soviet Union) offers some sage advice for getting through the inevitable "next wave".