The Market and Me...

The "market" and I don't get along. Well, that's old news. The market and most people like me - the low income, leftist, and artistically inclined - don't get along. However, there is one possible plus to the market falling apart before our very eyes. In the now immortal words of that crazy economics guy on MSNBC, the "mad money" guy, "we are all communists now." I mean, let's face it, the administrations we have had in this country over the past 20 years, beginning primarily with Reagan, and arguably with Carter, have all deregulated the crap out the markets. And Clinton did it too! But perhaps more important than the deregulation is the incurably greedy nature of the American investor. Deregulation did nothing but make greed welcomed, and in fact the main source of outstanding profit in the financial markets. Selling over-valued houses for massive profits was only possible because greed was/is tolerated in this country to a level that puts most industrialized countries to shame.

Bottom line: We don't make anything in the United States anymore. And as a result, most of the profit in this country comes as a result of moving money. Every time money is loaned, it collects interest, and then the loans are sold to other people - at a profit - so that they can collect the interest. We, the basic consumers, home owners, etc., don't know anything about it really. We just pay our monthly bill, trying out best to pay more than just the interest, and go on with our lives. The top 5% of the country goes on taking more and more off the top. In the end, because there is no regulatory structure therein, the inevitable outcome is a a giant fall-off, preceded by a "sell-off". Because we don't make anything in this country, we don't have manufacturing and labor to fall back on in times like these. We did have that during the Great Depression. In fact, the housing market became over-valued and run by greed right before the Great Depression too, so nothing happening now is new to America. What would be new is if the government managed to avoid completely fucking the vast majority of Americans, as a result of the greed of the folks at the top.

Unfortunately, I doubt that the rich in this country - the very same people who run the country at every level - really want to make sure that "main street" comes out okay on this one. It would be much more logical - from their absolutely crazed frame of mind - for the rich to simply let the thing fall apart, grabbing their stacks of cash on the way out the back door. Just like the past dictatorial communist leaders did in Eastern Europe when the Berlin Wall and Communism came down.

I'm rambling now. Here's why I called this little rant "the Market and Me". My wife and I, and a friend are putting our limited finances together to try to buy a house. Why now? Because we can get a great house, in a great area, for an affordable price. It's a poor person's market, my friends. However, we have to depend on a bank to make it happen for us. The good part of that is there are no "sub-prime" loans now. Instead, we are applying for a loan that has a fixed interest rate of 6% over 30 years, and it's a federally insured loan. Nobody can come to us five years down the road and decide to raise our interest rate to 20%, like the big banks did to all those poor suckers who took the bait a few years back and are now paying $2500/month on a $200K mortgage, for a house that has dropped down to $80K in terms of its actual market value. I know, ouch. The reality is that both the banking system in its casino-like approach to money, and poor people being stupid enough to think banks actually wanted to loan them $200K on a $30k salary without bumping their interest rate later, bear the blame for this mess.

We'll see if the bank does indeed grant us our loan. Our mortgage broker seems to think we won't have a problem. After all, we "qualified" for a much larger loan than we ended up asking for. We'll see if we get some points for not being greedy. hmm. In the end, I stand by my past statements in which I said, "bring on the collapse." You see, my version - the poor people's version - of the collapse is different from the rich. I don't actually lose a bunch of money when the collapse comes. Instead, I lose a little ability to take on debt. Some, not all, but some filthy rich money-misers who gambled with taxpayer money, will take a steep fall on their collective face. On the other hand, with all the government bailout, we are simply socializing the debt and privatizing the profit, so who knows. Anyway, what I am really saying: the government should take over the entire housing market and do whatever it must to get every working adult into a home of their own. Why? Because historically, owning a home (with manageable debt) is the greatest thing any of us can wish for, especially during hard times. Plus, if things go awry, the government would then be bailing out taxpayers, with taxpayers money, instead of banks with taxpayers money, dig?

So, let me get my house with these great loan terms. Allow me to have the ability to rent rooms out cheaply to my other struggling friends when the new depression comes. Allow me the solitude of having a home. I don't think that's too much to ask. I work hard, I pay my taxes, and I give a shit! All I am asking for is a home loan that reflects that. We don't need a strong market to ensure that for the average working adult. Let the stock market fall to shit. Let it all come crashing down. Then let the government take care of its people INSTEAD OF THE BANKS!