On Wednesday, Phyllis Caldwell, chief of the Treasury Department’s homeownership preservation office, told a financial bailout watchdog panel that there was no evidence of risk to the financial system from the documents scandal — or from efforts by mortgage investors to force banks to buy back problem loans.
Okay, let’s take a deep breath.
Now, where do we start? The amount of self delusion necessary if she actually believed this is staggering. If she doesn’t believe it, she must believe that we are grotesquely stupid and amenable to the most childish stupidity.
Put me in her position and ask my opinion. It will run like this –
“Oh, my God, oh, my God, in six months we are going to have to pay out several hundred billion dollars to shore up the banking industry, the housing crisis will be extended by three to four years and there’s going to be a legal battle over bank buybacks of improper securities that should last roughly a decade.”
Oh, and I will probably add, “Thank the Lord, I’m admitting how serious the situation is, because I’d sure look like a fool if I told everyone there was no problem! After that, I wouldn’t have any credibility at all.”
It’s hard to add to this. I could throw numbers running down the page for quite a distance about the huge amounts of money and the incredible number of mortgages affected by the crisis. But you can read, if you’ve paying any attention, you already know the numbers are huge.
So, I’ll let what I say stand without throwing the numbers at you. After all, I’ve probably got 15 to 20 posts where I talk about the numbers in detail.
I tell you guys. I just don’t get it. I graduated from Oklahoma’s Northeastern State University, got my law degree at the University of Tulsa College of Law. This woman has a BA, sociology and urban planning, and MBA, University of Maryland. Why is her thinking so different from mine?
Well, she’s got something I haven’t got, twenty years in the banking industry, most of it at Bank of America.
That would be the same bank that resumed foreclosures after deciding it didn’t have a problem? It would.
I guess I might not see a problem there either, if I only just had her “experience.”