Ghetto economy USA

The current implosion of credit markets has, as always, much to do with the forces of pull and subsidy. One of those forces, among others, is an insidious piece of crap disguised as legislation, laughingly referred to as the Community Reinvestment Act.

The Community Reinvestment Act is, of course, the political class's monstrous gift to their subsidy-gilt constituents of the dumb mass demographic, and as with any piece of Federal legislation, is designed to transfer wealth from one group (the producers) to another (the looters/moochers). Basically, the Act forces banks to loan whatever is deemed by the solons on high to be a "fair" proportion of its assets (that's your deposits and mine, by the way) to clients who belong to officially designated victim classes (the poor, persons of color, etc.). Most of these folks have a credit rating that might qualify them to purchase a used and heavily abused tenth-rate 1978 Pinto, but nothing more.

As this article demonstrates (so prescient for an article written in the distant year of 2000!), these proceedings are nothing more than a gigantic scam built on lies, deceit, and political dickcockery. The late credit boom was founded on a core of dishonesty from lenders and debtors alike, participating jointly in a scam of immoral credit expansion on a monumental scale which was all but certain to end in chaos, and aided and abetted by free flowing Federal Reserve Notes which the Regime saw fit to reproduce like rabbits in order to (literally) buy support from the public and finance its policies of elite enrichment and wars of imperial aggression. 

As proved by Austrian economics theory, once the central bank ceases the currency inflation and expansion all booms turn into a bust as the malinvestments deriving from too-loose credit and all its attendant moral hazards become evident and positions swiftly are liquidated.

The best position to take in a bust is to let the events proceed. Government needs to get out of the way while the market undergoes the painful but prompt process of cleaning itself out and shedding the malinvestments.

With laws like the CRA on the books, coupled with the plutocracy's burning desire to save itself from the raging fires of economic desolation - for the mess is so bad this time, the fires consuming the towers of finance are burning at the brightest and hottest level in history - this process is stunted.

This means that a depression is all but certain. The nation is bankrupt and in hock into the next millennium. Let the corpses fall.

The candidates for dictator offer nothing but more of the same - more protections for the powerful, more subsidies for the incompetent, more extractions from the nearly bankrupt productive class to pay for it all, more budgetary and currency shenanigans to make up the difference between anticipated revenues and realizing the aims of their fantasies of power. They preach death and worship it with every fiber of their collective dark souls.

Thanks to the greed of the subsidy classes - the underclass monsters for which subsidy is a birthright, the power classes for which a gift of a million here and there extorted from the taxpayers (or their customers thanx to extortionary corporative bureaucracy backed by State guns - that means you, Entergy) is equally viewed as a right, the dickhead aiders and abetters who themselves benefited from the loose credit regime to finance their DickMansion and granite countertopped kitchen in some far-flung exurb - this nation is finally, truly fucked.

Y'all've done a heck of a job, folks.