Great news! The more write-downs, the better.
Sad but true, the only way out of the credit crunch is to inflate it away.
Countrywide: Oh no, I have to foreclose on this home with 300k mortgage, but I can only sell it for 250k. If this keeps up, I'm gonna have to do another major writedown and even declare Bankruptcy. Why oh why did we ever do 125% no-doc loans. What the hell were we thinking?!?
Helicopter Ben:
Do you believe in Magic? And I hope you do.
Countywide: GREAT news Ben, we foreclosed on this 300k home, and now it's worth 400k. It's amazing what creating money out of thin air can do. We'll just sell it, and cancel the mortgage. Hey we even enough leftover to realize the accrued fees, which will allow us to show a profit on our income statement.
5 years later
Countywide: I dunno why we're writing 5% mortgages when I swear we're losing money. The dollar devalues 30% per annum. But inflation has been steady at 2.5% for the last 5 years, according to the Gummit... Let's take the trillions in USD currency we have and buy a few thousand Euros. We can start lending over there and benefit from huge ForEx gains as USD continues its free fall.
Secretary of the Treasury: "We have a strong dollar policy."
CNBC: Federal Reserve Chairman cut rates to -.5% today the first time in history. As a result of a strong economy. Stocked soared 6000% on the news as financial institutions received interest to borrow trillions and invested in the stock market. The DJIA has now surpassed the Zimbabwe Composite for the year. In an
unrealted story, the NYBOT delisted the USD index futures after it fell below 0.01 cents with generally no trading volume.
