Political Cortex: Brain Food for the Body Politic

Some buyers observed home prices skyrocketing, therefore some decided to gamble, calculating the prices would continue going up and they would flip over and re-sell as soon as possible and make a lot of cash on the runway real estate market bonanza.  They observed people making big money all around them.

Therefore some of the people Tom Miller referred to as victims were really gamblers, betting real estate prices would continue their unprecedented climb.

Some borrowers no doubt had lost their jobs, and of course illness without adequate insurance for catastrophic coverage, or many other reasons might explain many foreclosures.

But the overriding reason was obviously the top authority figures at Fannie Mae and Freddie Mac, who helped themselves to juicy bonuses as bank officials also did by granting thousands of high risk loans.  These charlatans, posing as legitimate, are largely responsible for the economic meltdown.

These characters make bank robbers like John Dillinger, Pretty Boy Floyd and Baby Face Nelson, or even Ma Barker look like rank amateurs.

Salvatore J. Bommarito of New York City in his letter to the New York Times on October 15 widened the scope of the economic meltdown monsters.  He explains:  

"Thomas L. Friedman sets aside political correctness and boldly states that many sub-prime borrowers, are to an extent responsible for the current financial crisis.

"So who are the responsible parties?  The aforementioned borrowers.  The solicitors who did not care whether borrowers could repay so long as they received a fee.  Banks that did not apply credit standards to determine if borrowers could repay.

"Packagers -- investment banks -- that did not concern themselves with credit as the paper was rapidly sold, and finally, let's not forget Congress and the last three presidents who promised the 'American Dream' to millions who could not afford it."

Eugene Lemicidi of Seattle wrote in a letter appearing in the New York Times that same day:

"Why isn't the 'American Dream' ever spoken of in terms of justice and equality, freedom and responsibility?

"Does the very definition of who we are as a people and nation have to boil down to things and owning them -- however necessary and desirable?"