It's A Wonderful Mortgage Crisis

"davelja's" comment was so right that I've copied again! I will add that this article is an excellent example of why our society is collapsing. By exclusively focusing on the technical complexities of finances we completely miss the real story. The value of life is people helping people. If that's working, the money will follow. From Clarence the angel, "Remember Gerorge, no man is a failure who has friends."

Posted By: davelja @ 12/24/2008 9:14:36 AM
Having just watched this movie last night, I was struck by one thing: When George Bailey was in need, all those that he helped pitched in to help him regardless of what was being said about him. Today, any "George Baileh" who got himself in trouble (even by accident) would be chopped up by our need for instant news, crucified by the talking heads, disemboweled by investigators and officials at a news conference, indicted like a ham sandwich, and all those who help him would gossip on their cell phones, look for the media spotlight to cry to the world, and ultimately turn their backs on someone who'd helped them. We're a different country than we were then. Different does NOT MEAN BETTER!!! What I would hope would come out of this crisis are several things: realize that the money in one person's palm is worth less than the extended palm of friendship, a quick buck isn't a good buck and most often a buck can't ever buy you lasting happiness, and that for all of us there is a deeper truth than anything that is uttered for the sake of "news" or glory. Maybe we can learn to be more like George Bailey and the people he helped and admire them more, and stop trying to be a rich and soulless Potter.

Good Lord, this is the most confusing and depressing article I've ever read.

George Bailey's frustration and disgust is a common feeling for many people these days, as they try to pay student loans or mortgages with no assistance while the major banks are able to receive billions in assistance. The hypocrisy of such a double standard is enough to make one feel like yelling and shaking people, much like George did when he tried to prove he was still living. Unfortunately, these feelings of betrayal and frustration fall on deaf ears -- there seems to be no Clarence to listen to us or represent us (and as much as I really do like Obama, from his economic appointments and bailout plans, he is NO Clarence -- or George Bailey, for that matter).

Well said, Davelja! Bravo!!

Compelling or just upsetting? In the past 10 or so years, we, instead of being the self-appointed kings of capitalism turned into the clowns of capitalism. A consumption-based economy produces a selfish, lost, passive and childish society. That must change.

Compelling or just upsetting?

Having just watched this movie last night, I was struck by one thing: When George Bailey was in need, all those that he helped pitched in to help him regardless of what was being said about him. Today, any "George Baileh" who got himself in trouble (even by accident) would be chopped up by our need for instant news, crucified by the talking heads, disemboweled by investigators and officials at a news conference, indicted like a ham sandwich, and all those who help him would gossip on their cell phones, look for the media spotlight to cry to the world, and ultimately turn their backs on someone who'd helped them. We're a different country than we were then. Different does NOT MEAN BETTER!!! What I would hope would come out of this crisis are several things: realize that the money in one person's palm is worth less than the extended palm of friendship, a quick buck isn't a good buck and most often a buck can't ever buy you lasting happiness, and that for all of us there is a deeper truth than anything that is uttered for the sake of "news" or glory. Maybe we can learn to be more like George Bailey and the people he helped and admire them more, and stop trying to be a rich and soulless Potter.

Having just watched this movie last night, I was also struck by one BIG difference from today: When George Bailey needed help, everyone who knew him and had been helped by him pitched in their own fair share - even the bank examiner. Today, any true "George Baileys" would be crucified by the media in advance, beaten up by every talking head, and castigated at a news conference held by prosecutors. Everyone who he'd helped would simply think of themselves, not a thought about the help he'd given them, and stick their hands in their pockets and turn their backs. We're a different country today - different, NOT BETTER! I pray that this current economic crisis will help us to relearn who we really are, and just what is most important: people not $$$$$!

we changed the president, not the congress and reguardless of how much you want to ingore it, they're the cause of the problem.

The movie begin's with the liberty bell ringing.(FREEDOM FROM DEBTS IS TRUE FREEDOM)To 1928 with the moon promise(1968 APOLLO 8 PROMISE FULLFILLED)This movie has more meaning than most think.From prayer to GOD,humility,answered prayer,mr.potter's statement of (this hog will get washed---evil sprits in swine off the cliff in to the sea)The community coming together to help each other.--GOD BLESS YOU ALL.........

Looking at this pile of economic gibberish; it occurs to me that there should one be one simple rule for handling and moving money. If you couldn't explain the process to a child, and expect them to understand it, don't do it!

It's worth noting that while "median earnings" are on the decline, total earnings are not. The wealthiest of us have never had it as good as today, while the rest of us are not so well off. Thankfully, "change" is here.

Pottersville was a bad dream, scripted into a movie. Our current problems are very real.

As someone noted below, the roots of the current mortgage crisis are declining median wages in the face of increasing costs of living. Declining median earnings are the result of our declining industrial base, huge chunks of it moved overseas in pursuit of cheap (slave) labor and lax labor/environmental regs. All while assuming people here could always buy the imports even as our earnings shrunk. The mortgage crisis is a symptom of the underlying disease. Wall Street's securitization process is only the second evil thing they've done to America. The first was their unforgiving pressure on business to lower costs and maximize profits, profits conveniently payable to Wall Street. While most of us might prefer Bedford Falls, I'm sure Mr. Potter found Pottersville more to his liking. I'm sure the average Wall Streeter would also find Pottersville more to their liking for doing business, even as they commuted to a nice home in a nearby suburban city.

Hello

Perhaps the reason why It's A Wonderful Life is particularly resonant this year is that it is an obvious warning about the dangers of laissez-faire capitalism. Could Mr. Potter be more like the CEO's and powerful global elites of today? He (and they) own everything in town, including all media outlets. Both own everything and suffer little in hard times -- it is the people of Bedford Falls (or Youngstown, Cleveland, Gary ...) that have nothing to hold on to. And when rampant capitalism becomes completely out of control: Bedford Falls becomes Pottersville -- corporations hold public goods and people become fearful of each other and bitter about what they have lost. This massive redistribution of wealth from the "stupid, small people of Bedford Falls" to the Mr. Potters of the world (AIG, CItigroup ... ) couldn't be more obvious, or outrageous. It's A Wonderful Life, indeed.

One addition to the mortgage problem is that now so many entities have a piece of each securitized mortgage that gettting approval for a workout for a troubled, but saveable, mortgage is next to impossible. This increases the default rate and thus exacerbates the problem further. The entitites buying into these securitized mortgages can't even get the information on what they are buying. You can get more information on the contents of a $1 bag of potato chips than you can get on a $1 billion CDO. This industry segment created a situation where the informatiion on the contents of the purchase were hidden to the point where the buyers couldn't evaluate what they were buying. And with no apparent limits on how far a mortgage can be split up no once could assess the actual market value of any of these CDOs. But that is what you get when you buy something without checking on what you were actually buying. Caveat emptor, and the caveats did not do their emptoring.