The Credit Crunch in a Nut Shell
It goes without saying that the most sophisticated and intelligent people are located on a few blocks we all like to call Wall Street. Under the circumstances noone can possibly understand all the goings on, that happen on that stretch of land on the planet. Who can blame you really? You aren’t as bright, not as well seasoned, nor are you as morally pure as say, a Wall Street investment banker. They are, without a doubt, the most astute beings on the planet. To say that they were taken unawares by credit crunch, simply begs the question of your own lack of understanding of the crisis. They most certainly understood and foresaw everything that was going to happen.
On the one hand, we had those thousands of smaller banks who were clandestinely handing out predatory loans. It is only fitting then that the larger banks and financial institutions, who never practiced such morally reprehensible business, be rewarded with tax payer money, so they could buy up all those thousands of banks to stop their scandalous business practices. It is reprehensible that ma & pa banks and local credit unions spread their ilk across the land handing out dirty loans to an unsuspecting public, all the while telling them that their ARM loans were fixed rate mortgages.
It goes without saying that, this is exactly why the U.S. government handed out billions to credit card companies, to protect the citizens from these tiny monsters that were providing capital to the citizens at insanely high interest rates. We can thank the government that no one’s credit cards were closed or limits lowered. Huge financial instutitions thankfully were never deeply indebted. I mean, we are talking about the best and brightest here. And, they, of course, were never over-leveraged to any degree. It was all those tiny lenders that had made insanely risky loans, and even worse, compounded the matter by engaging in financial mayhem like mortgage-backed bonds, leveraged-buyout loans and high-yield, or junk, bonds. We are thankful the government had the foresight to continue with the trickle down theory policy of spreading the tax payer wealth. For some reason the government continues to borrow money at interest from the Federal Reserve Bank, at interest, instead of printing its own money. I mean, they’re they federal government, they have a treasury department. But, it’s all the fault of those thousands of small banks and credit unions that conspired to raise the U.S. debt by forcing our policy makers into giving out tax payer money to banks too big to fail and credit card companies.
I thank God for people like Nancy Pelosi and Harry Reid, who are safeguarding the purse strings of America. And, with Paulson and Geithner at the helm of the piggy bank, we can sleep soundly.