3/10/08
One of my best and most respected friends and I got into an e-mail exchange about Bill Gross’s calling for the government to support agency paper. When I answered in a manner any regular reader of the Pontificator might expect, my buddy replied that, “Like it or not, he (Bill Gross) has a point. If agency financing tanks, the housing market is shot forever.”
Here is my reply (Incidentally, my wife often asks me if I ever just chit-chat with my friends. The answer is “No.” Why waste one’s time with chit-chat when one can discuss things like this?):
3/10/08
People should have thought about that, shouldn't they have? These guys aren't paid the money they're paid to assume that an implicit guarantee is an explicit guarantee, to ask "Is it insured?", or to look up ratings in an S&P or Moody's book.
Screw 'em all. The grossly inflated housing market, built on carelessness and financial foolishness, will come back when we regain our sanity as a nation. Meanwhile, the knaves and poltroons who got us into this mess will feel some real pain, and hence will never do it again. Hopefully, these grossly overpaid buffoons won't be given the chance to commit such heinous acts of irresponsibility with other people's money again, but, if they do, MAYBE they will have learned IF they are made to feel some pain, real pain, not a big severance package, a kiss on the lips, and another job they have no idea how to do after a month on the Vineyard.
But I doubt it; after all, they are in the club, and that is all that matters in today's America.
O tempora, o mores!
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