We saw it coming


Whenever I get writer’s block I just head over to Hullabaloo to read thereisnospoonupmyass‘ latest post:

One of the biggest lessons one can learn in life is that no matter how far up one rises or doesn’t rise, the world is still populated by the same sort of morons we met in high school. It never gets better. The people at the top of the economic are just as greedy, impulsive, reckless, shortsighted and petty as everyone who annoys us in our everyday lives.

This is part of what being a progressive means: understanding that reality, and understanding that most of our circumstances in life have little to do with our work ethic or skill, but rather a lot more to do with the circumstances of our birth and education, our parents, our social environment, whom we happen to meet and impress, which companies are hiring when we come on the job market, the bosses and clients we get and even just a lot of dumb luck. The financial Masters of the Universe aren’t much smarter than the rest of us, and they didn’t see the subprime mortgage CDO collapse coming any more than the average schlub who bought bought a subprime mortgage did. The only difference is that the former used the threat of total global economic collapse as leverage to get bailed out, while the latter had no such power.

It’s idiots, all the way up the chain. Idiots like Thomas Friedman and Alan Greenspan, neither of whom can prognosticate two feet in front of their noses, but whose words are taken as gospel by all the rest of collective fools who think they’re the smartest guys in the room. Which makes it all the more important that the idiots at the highest levels of government, whether they sport a fancy meaningless Ivy League degree or not, start listening to the actual smart people who did see it coming. Accurate prognostication is how policy makers can actually tell the smart people from the idiots.

Waaaaay back in the spring of 2008 we said Obama was a conservative wolf in progressive sheep’s clothing. That makes us the smart people and thereisnospoonupmyass one of the idiots.

Okay, he’s talking about the financial crisis and not Barack Obama but he’s wrong about that too. Matt Taibbi in The Great American Bubble Machine:

Not that Goldman was personally at any risk. The bank might be taking all these hideous, completely irresponsible mortgages from beneath-gangster-status firms like Countrywide and selling them off to municipalities and pensioners — old people, for God’s sake — pretending the whole time that it wasn’t grade D horseshit. But even as it was doing so, it was taking short positions in the same market, in essence betting against the same crap it was selling. Even worse, Goldman bragged about it in public. “The mortgage sector continues to be challenged,” David Viniar, the bank’s chief financial officer, boasted in 2007. “As a result, we took significant markdowns on our long inventory positions … However, our risk bias in that market was to be short, and that net short position was profitable.” In other words, the mortgages it was selling were for chumps. The real money was in betting against those same mortgages.

Why would Golden Sacks bet against those mortgages if they didn’t see it coming?


Goldman Sachs

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18 Responses to We saw it coming

  1. Mary says:

    I think I understand why Digby brought him on.

    He’s as tunnel-visioned as she is, wearing huge blinders, decorated with guttersnipe snark , while not understanding anything about economics.

    They traffic in narratives, and not in rational facts.


  2. Mary says:

    In other news, have you seen the Congressional Black Caucus video in which Andre Carson says Tea Partiers want to see Blacks “hanging from a tree” ? Other comments included , ramping up the anger and blaming every bad economic decision Obama has made , on the Tea Partiers.

    They’re calling for bank runs and civil unrest in the Tea Partiers’ neighborhoods and at their homes.

    This is gonna backfire, big time.

    • WMCB says:

      The Dems and OFA are playing a dangerous game. It’s going to be “ramp up the race rhetoric and provoke until there’s an incident, then say, “Look what those evil teapartiers made people do!”

      And BTW, that tinfoily “whitehouse insider” guy who has been right on a lot of stuff said a month ago that race-baitng is the game plan, and the whitehouse plans to use it in the most brutal fashion, and damn the consequences.

      Evil fuckers if true. I use that word deliberately. I’ve called them wrong, and selfish, and greedy, and clueless, and all sorts of things. But I don’t say “evil” lightly. But if that’s the plan, it’s fucking evil.

      • Mary says:

        Honk! Honk!

        It’ll be the end of the Dem Party. Americans are sick to death of it all. We’re looking at a Repub landslide if they keep this up.

        BTW, video is at Hot Air. It’s really disgusting.

        • soupcity says:

          It’s pretty bad, I really hope this isn’t he game plan. Here’s that vid.

        • Mary says:

          Apparently it is the game plan. From The Hill, article titled “Obama Targets GOP for fall offensive:”

          “When GOP lawmakers return, the president and his team are ready to deliver a flurry of attacks, castigating Congress for inaction on jobs, being on the wrong side of taxes and eager to destroy social safety net programs.

          If Obama and his team have their way, Americans will come to see every Republican as a “Tea Party EXTREMIST.”

          “By embracing the Tea Party’s ideas, the Republican Party has rarely been more intransigent, and it is causing their brand to utterly collapse in polls,” on official said.”

          Well, except that Aug 28th Rasmussen Poll shows Congressional Repubs with a 9-point lead over Congressional Dems. It’s the highest lead since March.

        • Mary says:

          Not to mention that consumer confidence has plunged almost 15 points in August—it’s back to APril 2009 levels.

          Guess the race card is all they have, now. Ugh.

        • votermom says:

          So Obama’s jobs plan is to hire a lot of attack trolls?

          Full employment for chihuahas!

          (Time to buy more stock in Orville-Redenbacker.)

    • DandyTiger says:

      It’s all the have. They will definitely push it for all it’s worth and more. They will have the MSM in the palm of their hand, so don’t underestimate how effective it might be. Esp. if they can find the usually batshit crazy percentage found in any group from the tea party to say or worse do something really horrible.

      Sadly it wouldn’t surprise me in the least if they plotted and set some poor suckers up to be murdered by some crazy tea partiers. And then point and say see. Hell, they could probably find a handful of people willing to sacrifice themselves for the cause.

      Isn’t that a sorry state of affairs that this idea is at all plausible.

  3. soupcity says:

    Yeah, well I remember who saw the mortgage collapse coming, had an actual plan to fix it and was summarily ignored. That goof at digby’s should take his/her head out of it’s ass and look in the mirror and see another link in the “idiot chain”. Arrgh!


    • Mary says:

      Great reminder! Thanks for posting.

    • WMCB says:

      Shit like that is why TBTB had to scuttle Hillary at all costs. And I also believe that Sarah’s sensible anti-corruption record is the real reason they stoked a freak-out over her. They spoon-fed it to the dumb progressives as her scary religion and her hick-ness, but that’s not why she scared them – that’s just what they used to whip up the stupid bloggers so a proven reformer didn’t get her fingers in their pie.

    • WMCB says:

      BTW, had a conversation this week with the middle-aged Mexican immigrant woman who cut my hair. She loved Hillary, and she likes Sarah, and is disgusted with Obama. She remarked to me, “In times of trouble, it is always the woman who is more practical. They have more common sense.”

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