Bluster, Bailouts and Bove

The vitriol spewing from the Obama driven court coercion of a Robo-sign mess to balance out a bank bailout has provoked us to weigh in. The dime store novel story reads like this: Undeserving lower class wannabe has epiphany in 2005 that he can game the system by buying a home that he cannot afford. All other intermediaries to the scheme are either ignorant or wiling accomplices to this fiendish plot by the nation's tired, poor huddled masses.

Along the way several conversations are NEVER heard-

Unscene 1) Broker A:" I know you would like to buy this $150k home but we can get you a bigger loan than that and if you take 50k in equity line, we'll knock the rate down." Customer, "No thank you kind broker/banker man, I am but a meager laborer and need to be prudent, these prices won't go up forever you know."

Unscene 2) Wealthy RE speculator: " I know I have 2 I/O properties in Fla and 1 in Co and they are all under water, but I'll keep paying because its good for the country."

Unscene 3) Your street, not uttered by you. "Excuse me sir/ma'am, I see you're looking at the house next door. I wanted to point out that the 750k asking price is considerably more than you should pay. My house just isn't worth that much."

That Dick Bove, bank stock cheerleader of the Century, could voice his opinion on this (flawed) situation is incredible. When he owns the stock, he loves a bailout. But this legal mess payback is not the conspiracy most are convinced it is. Bailing out the banks dealt with assets and liabilities and not human tragedy. Many people lost their jobs and could no longer pay. The American dream crashed around them much faster than they could have conspired to exploit it.  Populist generalizations of complex issues only tear at the delicate fabric that weaves a free society together. Personal success cannot be scored in terms of other people's misery. We as a nation cannot become consumed by social justice on the left nor hatred on the right.

Leave a Reply

Your email address will not be published. Required fields are marked *