The Warped Woodturner (TWW) is a local artist traveling his artist's journey in a suburb of Springbrook, WI (pop. 536). TWW's creative calling is to use a wood lathe to make useless objects from locally-sequestered organic carbon for tourists to bring back to the city to give to people they had to buy something for but do not like that much. His target market is the senior citizens since their vision is not as good as it used to be so cannot see the defects as well. His marketing jingle is: “Bowls as simple as their creator”.

Tuesday, September 30, 2008

Now even CNN is telling the truth

A Harvard economist speaks "This bailout was a terrible idea. Here's why.

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle."

source: http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

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