Dr. Housing Bubble 01/08/2010

[Crewleader]

The Financial Psychology of Moral Hazard and Strategic Defaults: How to Destroy the Economic Fabric of Society by Providing Benefits for Financially Irresponsible Bets on Housing.

The housing boom and bust has created one of the most corrupt financial systems in history. Now this in itself isn’t the shocking news since throughout history countries have proved over and over that connected governments and toxic businesses will siphon off money from the productive classes for exercises in bubbles (i.e., South Sea, tulips, technology stocks, housing, etc). Yet this is probably one of the first financial collapses where nothing was really done after the knocks were taken. The vast majority of Americans are scratching their head ever more impatiently wondering when the real reform is going to come down the pipeline. Wasn’t it only in March of 2009 that the global financial system was melting down like the Wicked Witch in Oz?

Many are now referring to the optics of the current situation. The fact that banks received $14 trillion in financial backstops, backed by the American taxpayer and government, has left many believing that our government is willing to backstop the most ill managed companies in the entire country. If you look at a list of who received bailouts, it looks like a list of the primary culprits of this economic mess. When people think about the bailout, they usually only think about the TARP list:

http://www.doctorhousingbubble.com/the-financial-psychology-of-moral-hazard-and-strategic-defaults-how-to-destroy-the-economic-fabric-of-society-by-providing-benefits-for-financially-irresponsible-bets-on-housing/