Down on Bullshit Avenue

September 27, 2008
International Symbol of Deaf and Near-Deaf

International Symbol of Deaf and Near-Deaf

A second great depression upon us all and all the U.S. media gives the world is BS.

The reasons behind the recent worldwide economic crisis are the same things that are killing franchising: inappropriate regulatory structure.

Industries require rules and enforcement to make sure the pirates don’t take over the ship from the ethical operators. Chesterton said that there are two ways to succeed: doing good work or cheating.

Absent any meaningful oversight and considering human nature, Guess which one always trumps the other?

  • Every time…under all conditions…The lesson learned from World Depression I.


Long Play: I would direct your attention to a very good article called Turning a Blind Eye: Wall Street Financing of Predatory Lending by Kathleen C. Engel and Patricia A. McCoy. It is 65 pages of the most comprehensive and accurate explanation of what happens when you let the 2 year olds loose in the candy store. Free download. [What’s not to love about]

Short Play: Listen and follow along with George Harrison‘s 2002 posthumously released album.

Our gullibility and laziness are used as the yeast that leavens frauds of many colours. Don’t look to the baker; if he doesn’t do it, someone else will assuredly know the recipe.

Maybe thinking for ourselves and questioning the glib sound bites is a way around and through this sewage?

Brainwashed, George Harrison

Brainwashed in our childhood
Brainwashed by the school
Brainwashed by our teachers
and brainwashed by their rules

Brainwashed by our leaders
By our Kings and Queens
Brainwashed in the open and brainwashed
behind the scenes

God God God
A voice cried in the wilderness
God God God
it was on the longest night
God God God
An eternity of darkness
God God God
Someone turned out the spiritual light

Brainwashed by the Nikkei
Brainwashed by Dow Jones
Brainwashed by the FTSE
Nasdaq and secure loans
Brainwashed us from Brussels
Brainwashing us in Bonn
Brainwashing us in Washington
Westminster in London

God God God
You are the wisdom that we seek
God God God
The lover that we miss
God God God
Your nature is eternity
God God God
You are Existence, Knowledge, Bliss

The soul does not love, it is love itself
It does not exist, It is existence itself
It does not know, It is knowledge itself
“How to Know God” Page 130

They brainwashed my great uncle
Brainwashed my cousin Bob
They even got my grandma when she was
working for the mob
Brainwash you while you’re sleeping
While you’re in a traffic jam
Brainwash you while you’re weeping
While still a baby in your pram
Brainwashed by the Military
Brainwashed under duress
Brainwashed by the media
You’re brainwashed by the press
Brainwashed by computer
Brainwashed by mobile phones
Brainwashed by the satellite
Brainwashed to the bone

God God God
Won’t you lead us through this mess
God God God
From the places of concrete
God God God
Nothing’s worse than ignorance
God God God
I just won’t accept defeat

God God God
Must be something I forgot
God God God
Down on Bullshit Avenue
God God God
If we can only stop the rot
God God God
Wish that you’d brainwash us too

Namah Parvati Pataye Hare Hare Mahadev
Namah Parvati Pataye Hare Hare
Namah Parvati Pataye Hare Hare

Shiva Shiva Shankara Mahadeva
Hare Hare Hare Hare Mahadeva
Shiva Shiva Shankara Mahadeva
Shiva Shiva Shankara Mahadeva

Namah Parvati Pataye Hare Hare
Namah Parvati Pataye Hare Hare
Shiva Shiva Shankara Mahadeva
Shiva Shiva Shankara Mahadeva

Predatory Lending: definition

March 31, 2008

Predatory lending is the practice of making exploitative high-cost loans to naive borrowers.

The academics below have defined predatory lending as a syndrome of abusive loan practices that involve one or more of the following five problems:

  1. loans structured to result in seriously disproportionately net harm to borrowers,
  2. harmful rent seeking,
  3. loans involving fraud or deceptive practices,
  4. other forms of lack of transparency that are not actionable as fraud, and
  5. loans that require borrowers to waive meaningful legal redress.
    (p. 1260)

How does this relate to residential homes?

The solution requires understanding the incentives in the home mortgage market that have fueled predatory lending.

Recent changes in the credit market have created new possibilities for lenders to profit by exploiting information asymmetries to the detriment of unsophisticated borrowers.

What is the role of government?

Neither market forces nor existing legal remedies are sufficient to correct predatory lending. Instead, government intervention is needed. [my emphasis]

Anyone who wants to really understand the problems facing the world’s markets and the New Zealand market in particular, are encouraged to study this academic work:

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