Just another Reality-based bubble in the foam of the multiverse.

Tuesday, May 06, 2008

Heresy

Not letting the robber barons free market rape and pillage find its balance is liable to get Bernanke excommunicated, if not burned at the stake, by the Dons of the Chicago School.



WASHINGTON -- As the House prepared to take aggressive steps to stem the wave of home foreclosures, Federal Reserve Chairman Ben S. Bernanke on Monday night endorsed the need for government intervention, saying that letting markets take their own course could "destabilize communities, reduce the property values of nearby homes and lower municipal tax revenues."

In a speech in New York, the central bank chairman reiterated his controversial call for lenders and mortgage service companies to consider cutting the principal of some customers' loans to prevent foreclosure.

"When the source of the problem is a decline of the value of the home well below the mortgage's principal balance, the best solution may be a write-down, perhaps combined with" a government-orchestrated refinancing, Bernanke told a Columbia Business School audience.

Bernanke stopped short of endorsing a bill introduced by Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, that would allow the Depression-era Federal Housing Administration to guarantee repayment of up to $300 billion in mortgages in return for lenders' making steep cuts in mortgage holders' loan balances...


And yes, when burning the Undead at the stake, you are going to see flaming zombie assholes.

The Roosevelt administration put all those banking regulations in place for a reason.

All the slick economic theory espoused academics with an agenda, all the properly conditioned MBA Masters of the Universe somehow convinced themselves that perpetual motion would keep moving.

The real economic predators, the Aristocrats who feel all righteous about their blood right to rule, saw the opportunity in the blind and the foolish, and pounced, and smashed, and grabbed.

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