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And I secretly like to watch.

According to this MAD Jim Cramer clip (a poor reference to his CNBC show Jim Cramer’s Mad Money) 14 million people took mortgages in the last three years and seven million of those took teaser rates or piggyback rates and if the Fed doesn’t cut the discount rate, those people are going to lose their home. AND, more importantly, his friends at the big banks (he mentions Bear Stearns and Goldman Sachs) are going to lose their jobs. Therefore, we have Armageddon in the fixed income markets.

HELLO?! I was nothing but a stupid college kid 3 years ago and said over and over that all of these were going to fold and the banks were going to lose their shirts. That is what happens to lenders with a short-term outlook that make loans there is NO CHANCE will get paid back. So who cares? I HOPE they all go out of business and lose their jobs. Their abusive lending and short-term outlook set them up for it.

And the home buyers. Sorry, but as much as I hate the bankers for this problem, you have to look out for your own. If you don’t have the financial sense to realize that when you get down to a $1500 payment on a $400,000 loan, something is wrong and more financial education is necessary before taking such massive debt.

So, it almost disgusts me, but I get a secret little pleasure from watching the fixed income markets collapse in on itself as a result of sub-prime home lending. It is about time the investment banks took one on the nose.