Comments on: Key 2007 email sums up the mortgage situation. It’s not from Goldman. http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/ Thoughts on the markets and the decline of the west Sun, 06 Nov 2011 13:55:07 +0000 http://wordpress.org/?v=2.6 By: charles http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/#comment-9021 charles Wed, 05 May 2010 03:40:55 +0000 http://sovereignspeculator.com/?p=4588#comment-9021 Mike, you are forgetting the last step in the reasoning : decent elected representative are pushed out because not only representatives can be bought, but also voters can be. It is an unescapable conclusion of electoral dynamics : the outcome of vote is decided by a small minority of swing voters with limited cognitive ability - people with stronger intellect (like you ?) can't be convinced easily. As such, this deciding can be manipulated by gross rethoric and mass-media marketing. To get a successful society and economy, one needs to strongly reign on the power of directly elected representatives (confining them only to "first principles" legislating ) and nurture a "mandarin" class governed by reason (for what it means...). In Asia and most of Continental Europe, it is provided by University Selected Bureaucrats. In totalitarian (read China) or pseudo democratic (read Japan, Korea, Singapore, etc...), the bureaucratic and legislative power are essentially the ssame thing (for better or for worse). In the Anglo-Saxon world, bureaucrats are seconded in this moderating role by a strong and independent judiciary which has a culture of its own. A weakening of this bureaucratic / judicial moderating power in favour of populist driven power is a garanteed recipe for ultimate collapse. Putting reason back on the driver seat means acknowledging the dead-end of the "majority vote legitimacy" totem. This is a very difficult endeavour. Mike, you are forgetting the last step in the reasoning : decent elected representative are pushed out because not only representatives can be bought, but also voters can be.

It is an unescapable conclusion of electoral dynamics : the outcome of vote is decided by a small minority of swing voters with limited cognitive ability - people with stronger intellect (like you ?) can’t be convinced easily. As such, this deciding can be manipulated by gross rethoric and mass-media marketing.

To get a successful society and economy, one needs to strongly reign on the power of directly elected representatives (confining them only to “first principles” legislating ) and nurture a “mandarin” class governed by reason (for what it means…).
In Asia and most of Continental Europe, it is provided by University Selected Bureaucrats. In totalitarian (read China) or pseudo democratic (read Japan, Korea, Singapore, etc…), the bureaucratic and legislative power are essentially the ssame thing (for better or for worse). In the Anglo-Saxon world, bureaucrats are seconded in this moderating role by a strong and independent judiciary which has a culture of its own.

A weakening of this bureaucratic / judicial moderating power in favour of populist driven power is a garanteed recipe for ultimate collapse. Putting reason back on the driver seat means acknowledging the dead-end of the “majority vote legitimacy” totem. This is a very difficult endeavour.

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By: Mike http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/#comment-9020 Mike Tue, 04 May 2010 20:44:55 +0000 http://sovereignspeculator.com/?p=4588#comment-9020 Sure, everyone went mad, buyers included. We're coming off the biggest financial mania ever. You're right, the Supreme Court effectively nullified oaths of Federal office a long time ago. Now violating the constitution and betraying the best interests of the nation are de facto legal. Naturally, the government says that what the government does is legal. Blame doesn't really solve anything. There won't be justice. Outrage will be misdirected. And history will repeat itself. This is all academic. Sure, everyone went mad, buyers included. We’re coming off the biggest financial mania ever.

You’re right, the Supreme Court effectively nullified oaths of Federal office a long time ago. Now violating the constitution and betraying the best interests of the nation are de facto legal. Naturally, the government says that what the government does is legal.

Blame doesn’t really solve anything. There won’t be justice. Outrage will be misdirected. And history will repeat itself.

This is all academic.

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By: Independent http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/#comment-9019 Independent Tue, 04 May 2010 20:25:19 +0000 http://sovereignspeculator.com/?p=4588#comment-9019 MichaelC, good point. I look at the foreclosures in my area and it is obvious that many people never intended to pay the mortgage. MichaelC, good point. I look at the foreclosures in my area and it is obvious that many people never intended to pay the mortgage.

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By: MichaelC http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/#comment-9018 MichaelC Tue, 04 May 2010 19:01:43 +0000 http://sovereignspeculator.com/?p=4588#comment-9018 Mike, I think this argument can go in circles. I could claim the Supreme Court made betraying the oath of office legal. So Congress' motivation is no different than Wall Street's. Here is my guilty candidate: "People get the government it deserves". Come back and look around a little closer. You can even drop the ideology. Just perform a survey: start asking people to compute the 20% down payment of a $260000 home. Mike, I think this argument can go in circles. I could claim the Supreme Court made betraying the oath of office legal. So Congress’ motivation is no different than Wall Street’s. Here is my guilty candidate: “People get the government it deserves”. Come back and look around a little closer. You can even drop the ideology. Just perform a survey: start asking people to compute the 20% down payment of a $260000 home.

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By: Independent http://sovereignspeculator.com/2010/05/04/key-2007-email-sums-up-the-mortgage-situation-its-not-from-goldman/#comment-9017 Independent Tue, 04 May 2010 18:34:02 +0000 http://sovereignspeculator.com/?p=4588#comment-9017 Agreed! There were a lot of folks who knew what was going on but kept the party going for their own benefit. Agreed! There were a lot of folks who knew what was going on but kept the party going for their own benefit.

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