others may have made this point way up stream....

the risk of default is different on say a lear jet
or pick up truck
that has stable real secondary market value
based on replacement cost and depreciation
houses are okay because like boats they can be built anew

house lots ..like picasso prints no

house lots like gold
where the ratio of yearly production to existing stock is very low ....

like stock they need
to be controled in their total expansion rate
by margin laws
and income to debt ratios
at a minimum
regulations
that efectively pin the lot values value

do the rationing right and bubbles don't inflate

so how can you blame any one else

agents will be agents
who didn't understand agency catalytics going in

who didn't understand bubblenomics

this was policy induced deliberate and utterly culpable
as to moral hazard
blame the s and l and dot .com
" rectification" was inadequate ...eh ???

obviously either the hand slaps doled out
weren't hard enough or the scape goats
frightening enough last time
or as i believe
there is no stopping these agents
by risk of jail and shame and financial destruction

pre emption

there have to be no bubblenomic opportunities
in the first place

Posted by: paine | Link to comment | October 05, 2008 at 05:57 AM

paine says...
as to spreading the risk
that was all about building an obviously faulty insurance system
don't tell me the risk wasn't calculated
this was a shell game
a fraud
a bright bunch of folks saw an opporutnity to loot
and took it
then zillions of followe ons
came in
who figured
as it grew into a full blown "market"
when ..not if..it collapsed
they had safety in numbers
and the comfort in knowlege that after the last two
looter waves
the purps landed back on their feet
not totally and forever destroyed

Posted by: paine | Link to comment | October 05, 2008 at 06:09 AM

paine says...
my grand father used to say

"let em take all my winnings away
just so long as i got hope
someday some where selling so thing
i can get back into.... the great game