Maybe I am just too damn dumb to understand. . .

This is a map of the continental United States


Are you with me so far?  This is a broad picture and I know it does not include Alaska or Hawaii. For the sake of this post, let’s just say this is America. If you pick any spot on this map and go there and begin digging, at some point you will reach dirt. It may be under concrete. It may be under a river or a bay. Regardless of the spot, there is nothing but dirt there. It was there when we founded the country. It is the third largest land mass in the world.

It is limited.

There is only so much dirt

So we founded our country and lots of people showed up. They had to live somewhere. They elected officials and the officials appointed zoning people and they got together and determined an orderly way to partition the dirt so we would make the best use of this limited resource.

They planned subdivisions

People wanted a home of their own. They came to the subdivision offices and bought homes to be built. The bankers and the builders and the developers all did their job. The construction industry fulfilled its mission. As time went by, these neighborhoods began to dot the landscape from the east to the west.

An entire economy was created

Every bit of it built on the limited supply of dirt

We had our ups and downs, wars were fought and won, we had a man on the moon. The red sox finally ended the jinx. We grew as a Nation and a world power. We changed and became a true melting pot. Even as we were vilified in the world community, people still came to America. This remains the land of the free and the home of the brave.

Then we forgot to mind the store. We created the American Dream and failed to keep our eyes on those that were aiding and abetting the process. Our elected officials kept promoting a lifestyle that was not sustainable and all the people that had to create the illusion followed the pied piper of fiscal irresponsibility off the cliff of our solvency.

We woke up and the entire system had crumbled before our very eyes.

So now there is talk of toxic assets and derivatives and all sorts of fancy terms that are related to the housing crisis. The government is going to great lengths to repair the damage that has been done. I hear that. Maybe I am just too damn dumb to understand.

We now have this.


This is a toxic asset

Most people would call it an empty home. I suppose I don’t understand why they don’t just make the purchase of this type of “toxic asset” a bit easier. I mean if someone actually buys the “toxic asset” it becomes a non-toxic good deal or look what I bought for my family.

If something is done to promote this activity, assets won’t be so toxic.

I have said it before, more than one time, but I just don’t understand why the brilliant people that are trying to fix this mess don’t address this problem at it’s core. Why can’t we have a trickle up theory working here? If the focus is on getting these empty homes sold, at some point those investors holding fancy derivatives will get something for their paper. There is value. Remember, there is only so much dirt.

This should be the result we are seeking

But, then again, maybe I am just too damn dumb to understand

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