For too long interest rates too low, the Federal Reserve did keep.
In myriad ways, home ownership the government did encourage.
Sign up everyone and anyone for a mortgage, originators had incentives to.
Their heads up their butts regulators had. Hmmmmmm.
Ever higher, housing prices rose.
To buy people began, with borrowed money, to sell again only. Herh herh herh.
To go up forever seemingly everyone expected housing prices.
But to be it was not. Herh herh herh.
Prices plummeted, with negative equity burdening over-leveraged borrowers. Hmmmmmm.
Reigned supreme the dark side did.
Defaults soared and banks teetered as billions of federation credits vanished.
With Hope for Homeowners the government responded, and with TARP, direct bailouts, contrived mergers, and a doubling of the Fed's balance sheet. Yeesssssss.
But the stock market still tanked and credit spreads remained wider than the Millennium Falcon, they did.
Bring what the future will, I know not. Hmmmmmm.
Jedi, I am, not a fortune teller.
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Created with the aid of Learn to Talk Like Yoda.
Coming soon, a Battlestar Galactica version.
Never coming, a Klingon version.
Why we laugh at misfortune.
