The financial crisis: companies with lots of bad mortgage paper can't get loans, and the fear is that will spread to other companies, with no exposure to tricked-out crap mortgages.
But it's not happening. Anecdotal evidence says that people are still getting mortgages, people are still delivering supplies on net 30 terms.
The whole thing is a sham and a trick to avoid short-term pain.
Well, Washington and Wall Street had their party. Liberals made sure that people who didn't deserve to get loans got them, and got to live in places they couldn't afford. But that party is now over: the oil price run-up and the real estate bubble burst have signaled the keg running dry. Now people in homes they can't afford are realizing that they've been had.
Now the people who got us into this mess want to have the government buy up all of those bad mortgages, to keep the party going. What we need to do instead is suffer our collective hangover, and remember why it is you're not supposed to drink so much.
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