There's two kinds of victims in a sub-prime mortgage meltdown; the money managers, and the people who followed their lead. Each one faced their own unique risk, right?
Let's take a look.
To my left is a photo of Jimmy Cayne's new home. Jimmy is the disgraced former Bear Stearns CEO whose company went kablooey this week, but which was saved by a bailout the Feds engineered with... our tax dollars.
Funny, I was just working on my taxes. Also this week, twenty thousand California teachers got their pink slips, taking our state to the the absolute bottom in public education spending.
But Jimmy and the other Bear Stearns blowhards need my money more.
Jimmy just closed a deal on a twin set of adjacent apartments at the famous Plaza Hotel (home of Eloise!) for $28.24 million.
Altogether, Jimmy and wife will have 6,000 square feet at the Plaza, plus room service, maid service, a concierge, and stunning views of Central Park. I'm so glad everything is working out for them!
Meanwhile, back in California, we have a new version of the 1930s Hoovervilles. These are shantytowns for people who have lost their homes because of mortgages they couldn't pay, and health crises they couldn't avoid.
This film was taken by some BBC reporters, because the American media is far more interested in adultery and blow jobs.
And after all, it's these people's fault that their fortunes went up in smoke, just as it is to Jimmy Cayne's credit that he's found a golden parachute. Right.
What exactly is a subprime mortgage banking crisis? What caused the subprime meltdown? Who's to blame, really?
This PowerPoint presentation seems to explain it best, in a cunning manner than even the most green financial virgin can understand. Yes, click on that link, it will download, you will open it, and all will be revealed in simple stick figures. Call me when you peel yourself off the floor.
Thanks to boingboing for the Hooverville tip, Heather Harrison for the PowerPoint tutorial, and New York magazine for the real estate update.
