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	<title>Comments on: Home Life and The Economy: The Hidden Thread&#8230;</title>
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		<title>By: Sean Jagodzinski</title>
		<link>http://choosethinking.com/2009/02/home-life-and-the-economy-the-hidden-thread/comment-page-1/#comment-252</link>
		<dc:creator>Sean Jagodzinski</dc:creator>
		<pubDate>Sun, 15 Mar 2009 04:19:29 +0000</pubDate>
		<guid isPermaLink="false">http://choosethinking.com/?p=373#comment-252</guid>
		<description>*Good analogy. I really wish you would post your thoughts on issues more. You really make people think.</description>
		<content:encoded><![CDATA[<p>*Good analogy. I really wish you would post your thoughts on issues more. You really make people think.</p>
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		<title>By: Kathlyn Scott</title>
		<link>http://choosethinking.com/2009/02/home-life-and-the-economy-the-hidden-thread/comment-page-1/#comment-153</link>
		<dc:creator>Kathlyn Scott</dc:creator>
		<pubDate>Mon, 16 Feb 2009 14:34:34 +0000</pubDate>
		<guid isPermaLink="false">http://choosethinking.com/?p=373#comment-153</guid>
		<description>I had no idea that only 10% of borrowers defaulted.  I guess I assumed that there were more than that.  This leads me to many, many questions then about why the financial meltdown is attributed primarily to mortgage defaults.  It makes me wonder what the default reserves requirements were for financial institutions.  It makes me wonder what happened to all of the private mortgage insurance (which was supposed to provide a type of default hedge, but that is right-the insurance providers tanked20also).  It makes me wonder what types of risk mitigants were considered as portfolios grew.  It makes me wonder what percent of the overall economy only 10%  of the population, on the basis of their mortgages, were holding up.  I wonder what the ratio of derivatives revenue related directly or indirectly to actual mortgage revenue from home owners was before the default.  For some reason, it does not make sense that a 10% default rate could sink the entire other 90% of a market, let alone an entire economy. Something just does not make sense.

I did not understand the wisdom in the financial bailout.  I was even more unclear as to why trillions would be provided to the same players that lacked the ability to manage properly in the first place.  I was even more perplexed when everyone was outraged, shocked and seemingly surprised that the same players that presided before and during the crisis, would behave any differently in the bailout.  If they were able=2 0to see that their ideas, philosophies, thoughts and actions were a problem, we would not have a problem.  They think that what they did was fine and that it is the silly, ignorant, defaulting homeowners that are the problem.  There is also a presumption in President Obama&#039;s thinking.  He presumes that the population in America will behave differently because of the crisis that we are experiencing.  I think that unless forced, the general population will behave the same way they behaved bef ore the crisis to some extent, if allowed, because they think that the problem was the &quot;greedy Wall Street bankers&quot;.  We have two critical segments of the economy thinking and acting the same way.  They are purely self focused.  This is a problem.  Businesses will get funding as a result of the stimulus package not because they have goods and services that are relevant and needed, but because we are afraid to find the bottom, which is exactly where our actions have taken us.  If those businesses lack the ability to self reflect and admit that they need to revamp their business or just get out of their business or that they are bad business people and need to give others a chance to perform, the stimulus will simply reinforce that which is not good, relevant or needed.

I think the stimulus package is to the economy as cancer is to the human body.  It can kill the bad cells and stave off the growth of more bad cells for a time.  However, if the root20of the problem is not discovered and dealt with, the cancer will return and it will usually be more resistant and potentially deadly and fatal. 

K.Scott</description>
		<content:encoded><![CDATA[<p>I had no idea that only 10% of borrowers defaulted.  I guess I assumed that there were more than that.  This leads me to many, many questions then about why the financial meltdown is attributed primarily to mortgage defaults.  It makes me wonder what the default reserves requirements were for financial institutions.  It makes me wonder what happened to all of the private mortgage insurance (which was supposed to provide a type of default hedge, but that is right-the insurance providers tanked20also).  It makes me wonder what types of risk mitigants were considered as portfolios grew.  It makes me wonder what percent of the overall economy only 10%  of the population, on the basis of their mortgages, were holding up.  I wonder what the ratio of derivatives revenue related directly or indirectly to actual mortgage revenue from home owners was before the default.  For some reason, it does not make sense that a 10% default rate could sink the entire other 90% of a market, let alone an entire economy. Something just does not make sense.</p>
<p>I did not understand the wisdom in the financial bailout.  I was even more unclear as to why trillions would be provided to the same players that lacked the ability to manage properly in the first place.  I was even more perplexed when everyone was outraged, shocked and seemingly surprised that the same players that presided before and during the crisis, would behave any differently in the bailout.  If they were able=2 0to see that their ideas, philosophies, thoughts and actions were a problem, we would not have a problem.  They think that what they did was fine and that it is the silly, ignorant, defaulting homeowners that are the problem.  There is also a presumption in President Obama&#8217;s thinking.  He presumes that the population in America will behave differently because of the crisis that we are experiencing.  I think that unless forced, the general population will behave the same way they behaved bef ore the crisis to some extent, if allowed, because they think that the problem was the &#8220;greedy Wall Street bankers&#8221;.  We have two critical segments of the economy thinking and acting the same way.  They are purely self focused.  This is a problem.  Businesses will get funding as a result of the stimulus package not because they have goods and services that are relevant and needed, but because we are afraid to find the bottom, which is exactly where our actions have taken us.  If those businesses lack the ability to self reflect and admit that they need to revamp their business or just get out of their business or that they are bad business people and need to give others a chance to perform, the stimulus will simply reinforce that which is not good, relevant or needed.</p>
<p>I think the stimulus package is to the economy as cancer is to the human body.  It can kill the bad cells and stave off the growth of more bad cells for a time.  However, if the root20of the problem is not discovered and dealt with, the cancer will return and it will usually be more resistant and potentially deadly and fatal. </p>
<p>K.Scott</p>
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		<title>By: Kevin Goddard</title>
		<link>http://choosethinking.com/2009/02/home-life-and-the-economy-the-hidden-thread/comment-page-1/#comment-152</link>
		<dc:creator>Kevin Goddard</dc:creator>
		<pubDate>Sat, 14 Feb 2009 18:54:47 +0000</pubDate>
		<guid isPermaLink="false">http://choosethinking.com/?p=373#comment-152</guid>
		<description>The stimulus initially smells so sweet, 
followed by a stench your nostrils care not meet. 
All the while you’re left with poop on the floor 
and a pooch producing ever more.</description>
		<content:encoded><![CDATA[<p>The stimulus initially smells so sweet,<br />
followed by a stench your nostrils care not meet.<br />
All the while you’re left with poop on the floor<br />
and a pooch producing ever more.</p>
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		<title>By: Jim</title>
		<link>http://choosethinking.com/2009/02/home-life-and-the-economy-the-hidden-thread/comment-page-1/#comment-151</link>
		<dc:creator>Jim</dc:creator>
		<pubDate>Wed, 11 Feb 2009 13:16:04 +0000</pubDate>
		<guid isPermaLink="false">http://choosethinking.com/?p=373#comment-151</guid>
		<description>Well said Dan, Well said!</description>
		<content:encoded><![CDATA[<p>Well said Dan, Well said!</p>
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