Wednesday, May 5, 2010

Blatant Disregard

"The growing interface between high finance and lower-middle class America was assumed to be good for lower-middle-class America."

Michael Lewis,The Big Short: Inside the Doomsday Machine

A few quotes from dissident investor Steve Eisman:

"The distribution of income in this country was skewed and becoming more skewed, and the result was that you have more subprime customers."

"And the story they like to tell was that 'we're helping the consumer. Because we're taking him out of his high interest credit card debt and putting him into lower interest rate mortgage debt.' And I believed that story."

"A thought crossed his mind: How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans?"

"If you are going to start a regulatory regime from scratch, you'd design it to protect middle- and lower-middle income people, because the opportunity for them to get ripped off was so high."

"That's when I decided that system was really, 'Fuck the poor.'"

There you have it. A good case for regulatory reform. But what do we do about the blatant greed and disregard for fellow Americans?

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