I am not an economist, but I can do arithmetic.

Please read Paul Jorian's blogpost regarding the implosion of the credit markets, the reasons, the influence of "The Chicago School" of economists whose assumptions continue to help us not understand how economies work, and "What it All Means".

Don't feel bad to reread each sentence, mouth-moving to form the words, just as I must do. Just read it. (plus it's fucking footnoted. My god, who footnotes a blog!!!????)

Here are some teasers:

The opener:

they knew, and as early as early 2007 or 2006. As laid out in this piece (entitled "Perfect Storm in Default") by a mortgage default professional in response to a Wall St. Journal article:

Some "money" quotes, and a trend:

"In the movie the “The Perfect Storm” three storm systems converged to create the storm of the century which had a horrendous impact on the east coast of the United States and Canada. What does it mean when we have 16 major economic indicators pointing to problems with the housing industry and the national economy. It means “The Perfect Storm in Mortgage Default” is not only possible but extremely likely."

This doesn't surprise me at all, indeed, I would name it a "feature" and not a "bug." Democracy Now!

A startling new report has predicted the subprime mortgage crisis will cause people of color to lose up to $213 billion, leading to the greatest loss of wealth in modern U.S. history. The figure appears in a new report from United for a Fair Economy called “Foreclosed: The State of the Dream 2008.” The group accuses mortgage lenders of deliberately targeting the poor and people of color with high-cost loans.

Predatory lending is as old as 40 Acres and a Mule. Poor people are the easiest to scam when it comes to complex financial vehicles, and I would like more bloggers to speak about this angle of "how we got this crisis."

It's pretty clear that greed, willful ignorance, Bushist "logic" and a criminal lack of regulation brought about the mortgage crisis. But so too did racism- again and again I've read of poor and brown and black people conned into believing they could afford mortgages when they couldn't. Now this report confirms this endemic of racist lending practices. Want to impress me, Obama, Hillary? Speak about this angle of the mess one of you will be cleaning up soon.