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The house bubble was a ponzi scheme in the sense that everyone (banks, financial institutions, individuals) were paying debt off with more debt. This case was a bit interesting as people were basically creating exotic ways of dealing with debt that made it very hard to even know what the hell was going on. So unlike the original ponzi scheme most of the players didn't actually realize what they were doing.
Do you actually know what a Ponzi scheme is because I'm wondering how you relate it to people buying and selling homes?
First, I did not relate it to your "motherhood & apple pie" over-simplification of people buying and selling homes. I did see some relationship to greedy mortgage bankers, realtors, and everyone else who would stand to profit from fostering the concept of exhorbitant returns on investment at no risk. A person buying a HOME to live in is markedly different than a speculator buying 20 houses with no doc, no proof of income, fraudulent loan instruments with the intent of becoming a star on TV programs such as "Flip That House".
Now, do you want me to debate the fine points of Ponzi vs pyramid schemes, or recount Matteo Quintavalle's use of Costa Rican real estate as a Ponzi scheme.......
or do you just want to contemplate the possibility that as a realtor, you were an unwitting participant in feeding the frenzy?
We BLAME Bush. We BLAME all the people we elect to office. We BLAME FRB. We BLAME dishonest lenders. We BLAME the banks. We BLAME Wall Street. We BLAME dishonest appraisers. We BLAME vulture realtors. We BLAME and BLAME and BLAME our greed and consumption on everyone else.
Could it be that it's our entitlement culture, a nation of subprime credit junkies, financing our consumption of stuff, most of which, depreciates the moment we acquire it.
We are children in the world's candy store with the credit to acquire whatever it is our hearts desire, regardless of need or the ability to pay for it.
Like all addicts, we live in denial with the fantasy of a life without consequences, rationalize our behaviors and manipulate and blame others for our poor choices. We awake terribly dope sick and must either quit cold turkey or pacify our discomfort and get another fix.
All addicts need enablers to sustain their habit. Enablers also live along the river denial and are co-dependents. There is always something in it for the enabler, else they would cut the addict off and let the addict hit rock bottom.
The rear view mirror will, one day, show the true cost for the collective ticket to Easy Street, USA.
We BLAME Bush. We BLAME all the people we elect to office. We BLAME FRB. We BLAME dishonest lenders. We BLAME the banks. We BLAME Wall Street. We BLAME dishonest appraisers. We BLAME vulture realtors. We BLAME and BLAME and BLAME our greed and consumption on everyone else.
Could it be that it's our entitlement culture, a nation of subprime credit junkies, financing our consumption of stuff, most of which, depreciates the moment we acquire it.
We are children in the world's candy store with the credit to acquire whatever it is our hearts desire, regardless of need or the ability to pay for it.
Like all addicts, we live in denial with the fantasy of a life without consequences, rationalize our behaviors and manipulate and blame others for our poor choices. We awake terribly dope sick and must either quit cold turkey or pacify our discomfort and get another fix.
All addicts need enablers to sustain their habit. Enablers also live along the river denial and are co-dependents. There is always something in it for the enabler, else they would cut the addict off and let the addict hit rock bottom.
The rear view mirror will, one day, show the true cost for the collective ticket to Easy Street, USA.
Good analogy to addiction. Do you think we should get these people some topical "credit patches" to wear or make them chew "bad loan gum" to kick the habit?
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Yes, it was a ponzi scheme!
