14 February 2009

One wonders if people really thought investments, including houses, were going to continue going up forever; they acted as if they did.  Alas, it never happens that way.  So why do they think this time is the charm?  Because they want to: see the fantasy blogs.

Furthermore, the going up has been obvious to anyone willing to look for some time.  When the only mortgage people can afford is interest only?  Is that not an obvious prescription for disaster?  Apparently only if one has eyes open - and thinks (even a little).  But then Congress pressured the industry to provide mortgages even for those that obviously were going to have trouble paying them back; is there not a flashing yellow light there?  Apparently not to Congress; does that tell us something about Congress?

There was more - much more: too many malls, too many franchises, too much gambling (of all kinds), exhorbitant salaries and bonuses, excessive taxes (and government spending), outlandish insurance rates, and totally unreasonable expectations - of almost everything.  And we didn't notice this happening?  In fact when reporting the downturn almost no one has commented on the unreasonable and meteoric upturn that preceded it - none.  Why not?  Because no one wanted to hear that.

So we have a monumental bailout.  Surprise, surprise.  And when it happens again - next time?  Nothing will change.  Nothing, it seems, ever changes.  And does that tell us something about us - all of us?