just to point out the obvious...,
2009-03-26 10:45:48
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the poor have had it too easy, the rich have suffered too much...,
2009-03-26 12:01:29
moral, er, hazard:
Rating agencies are downgrading banks that don't have exposure to the shitpile, because we're going to buy the shitpile and make whoever has it rich rich rich, leaving the losers who didn't help destroy the economy to slum it out. Absolutely amazing.
Not only that, but the two largest insolvent organizations possibly ever are buying up more of the mortgage backed securities. You know how insatiable zombies can be:
"Our purchases in [mortgage-backed securities] increase liquidity in the mortgage market allowing people to buy a home," said BofA spokesman Scott Silvestri.
A Citi spokesman declined to comment, though people familiar with the bank say it argues the same point.
More massive over-investment into real estate is just what we need, see? And these banks are ready to help just like old times now that we're going to double down on their shitty lending! Yay. It's like an Eagles concert. Same old shitty songs, same shitty old guys.
Queue reports that our clever plan to give even more money to rich people for wrecking the economy is working already.
update: I suspect what is probably going on here is that C and BofA are gobbling up the risky assets of smaller investors who don't have enough of it all in one place that we'll buy it from them, as they're small enough to enjoy the full fruits of market discipline. Hence a downgraded small-enough-to-fail bank like the above would hope to sell it to BofA, who then hopes to make a tidy profit on it selling it to us. This is a nice way to increase their take in Obama's recently announced looting spree while simultaneously increasing the size of the hole in the banks' balance sheets.
