Wednesday, May 10, 2006

Take Me To the Funny Farm

Just when you thought you'd heard the craziest mortgage scheme, along comes the 50-year ARM. (CNN article)

What is the US financing industry coming to? Where is the Fed when you need them? Why aren't they policing the banking industry instead of trying to micromanage the world economy by feeding the financiers with ready cash? Of course, we know the answer to both questions: They have a huge conflict of interest. On one side you have GDP and the upward maintenance of all these bubbles, and on the other, you have the little guy, who only needs someone to keep things on a steady course and fence out the wolves.

Guess which one gets sacrificed. Again.

[Thanks to the for this picture.]


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