I have spent the last few days on the house telephone, the cell phones, the fax machine, the computer message wizard, the telegraph and other means of contact with my brokers, investment bankers, agents and portfolio coordinators.
I am scared and, like most Americans do not know what to do or what to think.
I had to see Teacher.
He should be able to paint an avenue of optimism and provide emotional control in this crucial period where past omissions have forever changed the magic name of a famous street in Manhattan.
"First of all," he said while lighting a ten dollar Cohiba, "accept the debacle in all its impressive colors and worry about how far under the current it is going to take us!" "That does not sound very encouraging, not to say conciliatory, Teach!" He looked at me with a serious look and sentenced: "You ain't seen nothing yet, my friend, as senator McCain would say!" "Can you please enlighten me? My students are literally puncturing my eardrums along with my ego with non-stop questioning about this crisis.
It is even more crucial to some whose families have long-established ties with Wall Street.
I never dreamed that colleges for girls would turn out such intellectually acute and up-to-date young females.
Sometime it feels as if they belong to another species!" "They do, my friend, they do" He looked out the windows and said: "I am going to give you a review of what has happened to cause this crisis and what it means.
It will be in capsule form.
More detailed analysis and how to fix it will cost you another bottle of Remy Martin!" So, he gave it to me: "Key to the entire problem: Lack of regulations, coupled with enormous doses of greed.
Mortgage company sells its mortgages of overvalued assets to financial gang.
Gang turns them into securities and sells them to Wall Street operators, foreign banks, investment groups, local and foreign, and the cute nurse in the First Aid station.
At a profit of course, using borrowed money from banks, who are also itching to get in the mortgage security game.
Remember that we are talking about overpriced house values in a market of home acquisitions never seen before.
This will last forever, they all thought, smart as they are.
The regulators turn the other cheek!" Teach took one of his usual rest periods which he used to bring a fresh pot of coffee and a plate full of Cinnamon and Apple Pastry.
I asked: "You mean to say that this crisis can be traced to lack of control in the handling of mortgage and in particular sub prime mortgages? Isn't the entire mortgage option regulated by each state?" "Right on the nose, my friend.
The greedy ones quickly noticed the lack of attention from State Regulatory institutions and converted those mortgages into paper that came wrapped in exaggerations and illusory promises backed by the old cadences of the American Dream.
All this time the Fed and the Treasury were more concerned about the new menus at the Ritz in London.
" This whole thing sounded to me like an Ocean 11 episode.
Crime at its most refined! I ventured to ask" "Teach, what is next?" He finally smiled, but sadly.
He replied: "I am sorry for your girl students along with a few million of fellow citizens.
For a while at least there will be no splurging every time there is a birthday to celebrate, a reunion to attend in the Virgin Islands and a new Jag or Lamborghini to break in.
" "Any message for my readers?' Aware of the drama of the moment he replied in his best Vincent Price tone: "You ain't seen nothing yet!"
I am scared and, like most Americans do not know what to do or what to think.
I had to see Teacher.
He should be able to paint an avenue of optimism and provide emotional control in this crucial period where past omissions have forever changed the magic name of a famous street in Manhattan.
"First of all," he said while lighting a ten dollar Cohiba, "accept the debacle in all its impressive colors and worry about how far under the current it is going to take us!" "That does not sound very encouraging, not to say conciliatory, Teach!" He looked at me with a serious look and sentenced: "You ain't seen nothing yet, my friend, as senator McCain would say!" "Can you please enlighten me? My students are literally puncturing my eardrums along with my ego with non-stop questioning about this crisis.
It is even more crucial to some whose families have long-established ties with Wall Street.
I never dreamed that colleges for girls would turn out such intellectually acute and up-to-date young females.
Sometime it feels as if they belong to another species!" "They do, my friend, they do" He looked out the windows and said: "I am going to give you a review of what has happened to cause this crisis and what it means.
It will be in capsule form.
More detailed analysis and how to fix it will cost you another bottle of Remy Martin!" So, he gave it to me: "Key to the entire problem: Lack of regulations, coupled with enormous doses of greed.
Mortgage company sells its mortgages of overvalued assets to financial gang.
Gang turns them into securities and sells them to Wall Street operators, foreign banks, investment groups, local and foreign, and the cute nurse in the First Aid station.
At a profit of course, using borrowed money from banks, who are also itching to get in the mortgage security game.
Remember that we are talking about overpriced house values in a market of home acquisitions never seen before.
This will last forever, they all thought, smart as they are.
The regulators turn the other cheek!" Teach took one of his usual rest periods which he used to bring a fresh pot of coffee and a plate full of Cinnamon and Apple Pastry.
I asked: "You mean to say that this crisis can be traced to lack of control in the handling of mortgage and in particular sub prime mortgages? Isn't the entire mortgage option regulated by each state?" "Right on the nose, my friend.
The greedy ones quickly noticed the lack of attention from State Regulatory institutions and converted those mortgages into paper that came wrapped in exaggerations and illusory promises backed by the old cadences of the American Dream.
All this time the Fed and the Treasury were more concerned about the new menus at the Ritz in London.
" This whole thing sounded to me like an Ocean 11 episode.
Crime at its most refined! I ventured to ask" "Teach, what is next?" He finally smiled, but sadly.
He replied: "I am sorry for your girl students along with a few million of fellow citizens.
For a while at least there will be no splurging every time there is a birthday to celebrate, a reunion to attend in the Virgin Islands and a new Jag or Lamborghini to break in.
" "Any message for my readers?' Aware of the drama of the moment he replied in his best Vincent Price tone: "You ain't seen nothing yet!"
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