(Did you know that Renault debuted the R30 with last year’s nose, making studio launch shots laughably inaccurate? And that it’s damn hard to find representative shots of the car from the Valencia tests? Maybe I should just write about the STR5 instead.)
Economist Karl Case (of Case-Shiller fame) sums up the housing crisis in verse:
- Reflections on the housing market (PBS.org)
(Hat tip: Greg Mankiw)
Rather than post the whole thing, I’ll just add a few tidbits:
For the last few years, we have shed many tears
Living through a recession.
The economy’s broke and it’s not a joke,
When we talk of another depression.
Fifteen million without a job,
Foreclosures and banks that fail,
401K’s became 201K’s,
And everything’s up for sale.
How can it be? What didn’t we see
That led to all of this trouble?
There is little doubt that the proximal cause
Was a bursting housing bubble.
But other than that, who can we blame?
And what do they lament?
Millions of people contributed to
This hundred-year event.
It didn’t matter what rate you paid
Or what you made in a year.
For a while liquidity led to stupidity,
“Just sign and see the cashier.”
High LTV’s and Option ARMs
Negative AM’s and more,
2-28’s with teaser rates
And ridiculous Fico scores.
That free markets work to provide what we want
Is a notion that is not in dispute.
The problem is that once in awhile,
Of course there is greed and there is a need
For moral hazard and rules.
You are damned if you do and damned if you don’t.
To be “pure” is a game for fools.
Politicians, of course, are starting to shout
That they want more retribution.
It’s better, I think, if they used their time
Helping to find a solution.
It’s good. Read the whole thing.