What Prince should have said
Friday, April 9th, 2010Columnist Peggy Noonan is a master of language and understanding human nature. Her most recent Wall Street Journal column suggests what we, as average taxpaying Americans, would like to hear from those who played roulette with our money and lost big.
“Let’s be real. This is what happened the past 10 years. You, for political reasons, both Republicans and Democrats, finagled the mortgage system so that people who make, like, zero dollars a year were given mortgages for $600,000 houses. You got to run around and crow about how under your watch everyone became a homeowner. You shook down the taxpayer and hoped for the best.
“Democrats did it because they thought it would make everyone Democrats: ‘Look what I give you!’ Republicans did it because they thought it would make everyone Republicans: ‘I’m a homeowner, I’ve got a stake, don’t raise my property taxes, get off my lawn!’ And Wall Street? We went to town, baby. We bundled the mortgages and sold them to fools, or we held them, called them assets, and made believe everyone would pay their mortgage. As if we cared. We invented financial instruments so complicated no one, even the people who sold them, understood what they were.
“You’re finaglers and we’re finaglers. I play for dollars, you play for votes. In our own ways we’re all thieves. We would be called desperadoes if we weren’t so boring, so utterly banal in our soft-jawed, full-jowled selfishness. If there were any justice, we’d be forced to duel, with the peasants of America holding our cloaks. Only we’d both make sure we missed, wouldn’t we?”
Sadly you won’t find that in the official record because it was never spoken. But Noonan is correct it “would be a kind of breathe of fresh air.” We’ve got a better chance of proving anthropogenic global warming than hearing that kind of raw honesty.
Here’s what we really heard this week when former Citibank CEO Charles Prince testified in front of the Financial Inquiry Commission and explained why we are experiencing the worst economy since the Great Depression. A commissioner asked Prince if he knew why American homeowners experienced a 30 percent decline in property values, Prince responded:
Yes, we haven’t had such a decline “since the Great Depression.” The reason is before the crash there was “a bubble.” There was too much “easy money.” Then the bubble popped.
With that kind of insight, it is no wonder that Citibank was granted $45 billion in taxpayer bailout funds. Meanwhile a beautiful and historic home right next to mine has lost nearly 50 percent of its value.
