Thursday, June 19, 2008

Credit Crisis

I try to stay away from political, religious and other sensitive topics cuz going there is the fastest way to get people pissed off, and that's not the point of this blog. I'm a happy guy and want everyone to be happy too.

That said, I ran into a podcast on NPR that artfully, and in my opinion, correctly explains how the Credit Crisis, aka the Sub-prime collapse was born. It's not a conspiracy theory, self-serving scarce tactic piece, nor does it blame Democrats, Rebublican's, or the President for the mess. Ira Glass and his talented This American Life staff in Chicago expose the Global Money Market, Alan Greenspan, large and small banks and mortgage brokers, among others, as a willing group of aggressive, self-serving "business" people looking for a quick buck, at the expense of you and me, the little guys.

Since I work in the Real Estate industry, and have seen first hand the pressured, unethical and down right wrong, look-the-other-way tactics of the mortgage industry, this piece really hits home. It should be required listening for everyone because there is a lesson for all of us to learn. Do yourself a big favor and click here to listen to the online podcast. It appears in the May section and is titled "The Giant Pool of Money". The podcast runs one-hour long, it's free if you listen to it online, or $0.95 if you download it to your MP3 player.

On a lighter note, last night was the Wednesday night series XC race at Soldier Hollow. That sure is a fun race that is getting more popular and is a great mid-week interval workout. The course is about 4 miles in length with about 380 feet of climbing, nothing too serious. I rode my Fisher Rig SS and had a blast. And, I didn't finish DFL!!! There are no age group clasifications, just experience levels. I'm riding in the Expert B group so I get to race against the 2nd level hot shots. Most of those guys are pretty fast. I planned to ride only 2 of the 4 laps, but I was having so much fun I did all 4. KC Holley passed me about 12 minutes after the start (I had a 1 minute head start on her too), and I got chicked by Erika Powers and 2 others, but what-the-hey. They're FAST!

My race went well and my legs feel like they are coming back to me. I finished a 3 week training block last Saturday and spent the next a day and a half on my back due to exhaustion. A few days of rest seems to have done me good and the "lead legs" are gone. I'll recover the rest of this week and get ready for the ICUP XC State Championship race at Solitude on July 5th, and then it's on the Leadville. I also started another 5-day "boost" IHE session Tuesday in hopes of topping off my red blood cells so I can have an Incredible Hulk performance in August. We'll see...

6 comments:

Grizzly Adam said...

Ira Glass does some good work. I used to collect his This American Life series. I will have to give it a listen.

I was also reading about how many home buyers are committing loan fraud by exaggerating their income. And when they can't pay off the loans they call on the Government to bail them out.

What a mess.

Brad Mullen said...

You're right, and that's wrong! It's time we grow up and accept the consequences of our self indulgence. If you lie to get something and get caught, fess up and pay the piper. Don't be a finger pointing chicken-shit and blame someone else. Those who have lived a prudent, responsible life should not have to pay for those that embrace a phony, flashy lifestyle designed to impress their neighbors, a style they can not afford. Of course, it's the American way now days to blame someone else. You're right, what a mess...

ER Dad said...

You two are so ANTI-AMERICAN and UNPATRIOTIC! Isn't that what we've been hearing if anyone spoke up against this machine called capitalism? I don't feel sorry for the big firms that went bust, I feel only a little sorry for the hummer smucks that did not have the sense to say no to the stupid idea of NINA or sub-prime loans. Hello! What did they think was going to happen when the rates would rise? Sorry, your the one that opened this can, Brad.

Brad Mullen said...

It's a good can to open, and you're right too. Let the investment banks tumble, and take the REIT's, mortgage brokers, investors and everyone else with them. They knew exactly what they were doing and they were hoping for good ole U S to bail them out if things went bad, just like in the 80's. Hey, if I make a bad business decision can I get U S to bail me out too? Hell, no, I'm going down! Well Bear Stearns, Countrywide, Washington Mutual, et. al., auf verderzein. And that goes for the unethical mortgage brokers that preyed on the low income, under educated home owners that were easy pickings. I know 1st hand the pressure they put on appraisers to pump up values in order to get the deal done. And I know 1st hand a lot of good appraisers that have been forced out of the business because they would not secumb to the lender pressure. And I know 1st hand that the good appraiser is the one that hits the number, not the one that paints a true picture of the market. And I know 1st hand that when these pressures and wrong perceptions were brought to the attention of the feds and local authorities, nothing was done. Now, they all turn "ethical" and want to clean things up after the horse is out of the barn. What a bunch of BS! Sorry for the rant. Be sure to listen to Ira's podcast :-)

KanyonKris said...

Thanks for the link to the podcast. I had heard it mentioned, but forgot about it until you blogged it. I finally got through the whole program (1 hour?! should have been shorter - just the fact, ma'am). Now I hear the big pool of money is looking at energy, so you can thank them (partially) for the high price of gas.

Brad Mullen said...

I sure looks suspicious, doesn't it.