drieuxster (drieuxster) wrote,

Staying Near Message

I can appreciate that these are hard times, what with no real economic reform, and the economy facing a mere repeat, at greater costs to the tax payers of the vary same folly that fired the liquidity trap of 2007. So the compromise of waving the hand about freddie and fannie mae will of course help folks think as if there was a conversation about addressing stuff like a way to change things.

But it will help to stay on message.

IF one starts by explaining that the reason there is no private sector alternative to Freddie And Fannie, THEN it is important to not say that Freddie and Fannie executives were caught up in the same wave of problems that infected the private sector pools of betters on the state of the 30 year mortgages and the associated mechanism for financing homes.

I can understand that it is important to make it sound like there were no other secondary markets in collateralized mortgage instruments, since, well, if there were, then those would also have to have been governmental entities for them to have been the entities not squeezed out of the market by Freddie and Fannie... I can understand that it sounds well when one talks about the privatized freddie and fannie as being both GSE's and privatized entities, so that one can lambest them in their correct manifestation when discussing how there were no privatized entities, since, well if there had been, then those privatized entities would not have been at risk of collapsing on their own, gosh like AIG, from the failure to appropriate hedge their risks. But gosh kiddies, if we can find other players in the game, so easily, who failed so miserably, then why is it we were suppose to believe the myth that Freddie and Fannie had squeezed out the private sector, since, uh, the Freddie and Fannie could only deal in 'conforming loans' which meant something else was dealing with the problem of CDO cubing all of those non-conforming loans.

Ah yes, but that way would mean getting bogged down again the Zombie Economics of how it was that non-bank mortgage originating "firms" were some how Crushed under the jack booted heel of Repression, and thus forced by the CommunityReinvestmentAct, which did not extend to non-banking mortgage originating "firms", into making all of those bad loans which the invisible foot of the market would have correctly collateralized as risk based debt instruments since only the invisible foot of the market can appropriate collateralize risk and thus there should not be bank regulations that would impede the correct implementation of risk assessment and collateralization, as only the invisible foot, by means of banks and non-banking entities, can truly divine the Divine Will of the One True And ONLY invisible foot of the market. But that would of course mean understanding that there was a time when we could tell the difference between the things that are, and the things that are not.

So please, as we march forward into the new day in america. Uh what if we try not to self destruct the message in the same news release. Please folks we need to Stay Near Message about how only Trickle Up Economics can protect us from IranqIstanianFlyingSaucers and thus the government must get out of stuff, like Freddie and Fannie, but that they should still keep those home mortgage tax credits... Since every tax credit is sacred!

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