Monday, August 24, 2009

A Lamp Post

Only three weeks of the first 7 months of the Obama have come and gone without Friday bank seizures by the Government. Last Friday was not one of them. The FDIC had to shell out a large pile of tax dollars to clean up yet another small mess left by Republicans of the Bush Adm. Four banks including a large chain out of Texas had a visit from the men with the bags of padlocks.

Again, none of these banks failed from writing home mortgages or any sort of exotic paper contrivance of Wall Street, but like rest of the eighty so far this year they succumbed to large loans made to housing developers and builders. The really big shoe that has yet to drop is the commercial real-estate market. This is expected to bring down another 200 banks by the end of the year but less Pollyanna predictions are for another 1000 banks to fold which could even put a strain on the 500 billion the FDIC has secured from Congress to cover losses.

You can do a lot with 500 billion dollars. You’ve probably seen the list when they thought the Iraq War was "only" going to cost 500 billion. And this is only a small down payment on the cost of 30 years of Reaganomics. What is the cost of the end of the American Dream? Or the end of civilization? It would have been cheaper to have just given each Republican a truck load of money. The problem is that a sociopath is not happy with being rich, it’s the destruction and suffering that make him happy. The price tag is just a way of comparing the size of his to the next guy’s.
Bush and Cheney should be happy men, very few despots get to do this much damage and live to tell about it. Some where, in an inner circle of Hell, there is a lamp post with their names on it.

Handicapping the four horses of the Apocalypse at www.prairie2.com

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