"It's A Wonderful Life" All Over Again.... And Mr. Potter Comes To Town!

[Blackhatjack]

When there is a run on the banks, Mr. Potter is the only man in town with a substantial amount of cash --and he uses it to buy up properties and bank accounts 'for pennies on the dollar.'

Jimmy Stewart's character George Bailey is the Head of the Savings & Loan, and he pleads with the S & L panic stricken account holders not to demand full repayment all at once, but rather to stick together and make it on just what they need so that the S & L won't have to close its doors like the banks.

Why? Bailey tells them that if Potter gets his hands on the S & L and its accounts there won't be any more affordable homes built for working people, but rather with the S & L out of the way these people will have to rent low quality housing from Potter at high prices.

Once the panicky S & L account holders listen to George and pull together, the Bailey S & L makes it to closing time without having to close its doors. Later when the run on the banks is over, the S & L goes on building homes for working people and making life better for the entire town.

Today .... we are facing the same situation.

The relatively small number of incredibly rich are now playing the role of Mr. Potter.

The credit crunch combined with raised credit card rates and escalating ARM mortgages has created a situation where homeownwers cannot make all their payments, and they cannot sell their homes because those who might otherwise buy their homes cannot get a loan.

"Mr. Potter" is now picking up assets for 'pennies on the dollar.' As more and more homes slip into default and foreclosure, the wealth of riches for Mr. Potter to choose from is embarrassing.

Companies that just a few days ago were worth 10 times what they are worth today are there for the taking. Homes that were built in the last 3 years have lost their relative value as housing prices have fallen on the shrinking pool of buyers who can still get loans.

And the people who lived in those homes? The people who worked for those companies? And the shareholders who invested in those companies? Well.... the financial gurus tell us, they brought this on themselves --they should have known better --all hail to the Fed Reserve for 'letting the market work its way out of this problem.'

Yes, there is a massive transfer of wealth going on between the classes ... and Mr. Potter could not be happier about it.

[Blackhatjack]

1. Smirking experts on CNBC say 'Everything is fine, move along'...

Lost jobs, lost homes, lost businesses in massive consolidations, but .... everything is fine.

[Blackhatjack]

2. And today TV financial pundits act as if everything is fine... meanwhile

Thousands of employees of American Home Mortgage(10th Largest) are at home or out looking for jobs. Their company filed bankruptcy, and the millions needed to comply with their mortgage commitments does not exist.

People who have had their homes on the market for months hoping for a buyer now realize that the pool of people who can purchase their property has gotten very small, and the number of competing properties is growing each day.

And when 'experts' ask how people should make money in this market they have the gall to say that they are buying up foreclosures from desperate sellers.

Welcome to the new America where everyone who is not already incredibly rich has a role to play as servant to them.