I Hate Cooked Bananas in My Veins

The latest injection of Fed Chief Ben Bernanke’s half-baked Banana Republic ideas, administered directly into the veins of American thought by Associated Press suggests that in order to prevent more home foreclosures banks should just write down the principle for people whose mortgages are “under water”.   Of course, those who had the good sense to not take on a ridiculous level of debt will not get spit.

Very few will notice that if loan principle can simply be forgiven, then there was never any real capital involved in the loans to begin with, just credit created with a wave of the banker’s magic wand.  We live in an age of true financial smoke and mirrors.

“Tom Loonan, vice president of the State Bank of Easton in Minnesota, suggested that debt relief for some who got in over their heads may anger others, who took out mortgages that they could afford. "There's going to be some animosity," he said.”