Michael Lewis, usually a Wall Street cynic, takes a surprisingly anti-populist tone, wondering on Bloomberg why the role of the predatory borrower hasn’t been examined with a bit more scrutiny. Lewis also takes issue with the outrage the fluid AIG bonus situation has fanned.
But now that taxpayer money is on the line the story has changed: innocent taxpayers are now being exploited by horrible Wall Street financiers. The guy who defaulted on mortgages on his six spec houses in the Nevada desert has turned himself into the citizen enraged by the bonuses paid to the AIG employees trying to sort out the mess caused by his defaults.
The piece strikes me as unlike Lewis, which makes it worth the read.
Mass Hysteria Over AIG Obscures Simple Truths [Bloomberg]
You’re reading it wrong. Everything he writes is satiric and ironic. The man is incapable of earnesty.
Whenever I think of Michael Lewis, I immediately think of Tabitha Soren, which immediately makes me think of when MTV was (somewhat) digestible.
Choose or lose is the new killing it.
EP is misrepresenting what Lewis wrote. Here are the last few paragraphs:
*******************
I doubt seriously we will ever understand the morality of the $173 billion payment that is the far more serious issue [than the bonus issue]. For instance, Goldman Sachs, which received about 8 percent of the pile, or $13 billion, has claimed publicly that the money was, to them, a matter of indifference, as Goldman had hedged itself against a possible collapse of AIG — by making bets against AIG.
Goldman’s Clue
This suggests that it was clear to at least one market player, before the collapse, that AAA-rated AIG was behaving in ways that might lead to its demise — which is to say that there was really no responsible place to lay off these bets. (So why bail out those who made them?)
It also suggests that it is a matter of indifference to Goldman Sachs whether AIG lived or died, as either way it was protected. (So why bail it out?)
Since the beginning of the crisis I’ve wondered why the government has found neither the will nor the way to attack the root of the problem — the people who borrowed money to buy homes they shouldn’t have bought.
Now I think I understand. It would be too simple. People would understand a lot of small payments to the guy down the street who doesn’t deserve them, and become outraged. Far better to throw trillions at opaque corporations, the inner workings of which no one still really understands.
Even the leftiest blog in lefty town in coming around…
http://www.dailykos.com/story/2009/3/20/710936/-Unpopular
amazing article, michael lewis is annoying as hell but this is really an amazing article
…paulson = lloyd b’s cum-catcher
Lowly Assistant reads wikipedia
Lowly Assistant reads wikipedia
Hombres (6&7),
Yes, I’ve been known to visit wikipedia now and again. However, if you’re like me (I’m sure you are) and jerked off 18+ times to Liar’s Poker, you’ll have known for some time M.L. was married to Tabitha. Furthermore, if you were a pimply kid in the mid-90′s, you’d remember Choose or Lose.
You’re wet behind the ears, kiddo(s).
Also, it was a tiny dig at how we became a country content with branding every fucking thing under the sun. MTV was the first to let us know it was worth our time to listen to Metallica’s take on President Clinton, and so on/so forth (see: 2008 presidential candidates for further information (Oh, I’ll save you the trouble: http://en.wikipedia.org/wiki/United_States_presidential_election,_2008 )). Speaking of, I watched Lou Reid discuss plans for the department of sanitation on NY1 last night. He was so much cooler when he shot junk and wrote songs about fucking.
Thanks Tabby S.!
Lowly: I’ve said it before: you’re one of my favorite posters. I’m picturing a very clever guy with a whiff of hipster there too. But where did this potty mouth come from all of a sudden?
Can’t wait for shit to hit the fan in 2011 when the WSJ runs an article on how the lrgst HF’s made billions in fees using free “taxpayer” leverage provided by TALF. Will be retroactive taxes on HF/PE fees galore.
10,
I don’t know about all that, but I’ll take what I can get.
Potty mouth? I’m a thug, son.
For your viewing pleasure, I present haggardness, as personified by Mr. Lou Reed. Enjoy!
http://www.ny1.com/content/top_stories/95923/musician-lou-reed-slams-bloomberg-over-garage-plan/Default.aspx