Cause of the Banking Meltdown? Suburbia, Says Kunstler

James Howard Kunstler criticizes a recent New Yorker article that failed to consider the American pattern of suburban development as the cause of the banking crisis.

"It was the worthlessness of the tradable securitized debt associated with all those overpriced (and overvalued) chipboard and vinyl houses, smeared recklessly over the American landscape, that started all the trouble in the first place. And it is our inability to come to grips with that underlying catastrophe that prolongs the resolution of the still-florid banking crisis -- since the federal government is doing everything possible to prop up the failed capital equation of terminal suburbia, and to deny the obsolescence of that version of the American Dream and all the mechanisms for delivering it."

Full Story: Original Sin

Comments

Comments

Damning Suburbia

NO -WRONG!
The crisis was caused by greed. Filthy rich big bank, investment house and other execs who live where ever they wish, trying to squeeze out a few more points on their income statement, a few more upticks on the company stock, so they can exercise their options and become more filthy rich. And their fellow travelers-- other wild eyed zombies of Wall Streeet and vicinity--, especially those who rate or insure the products of the former. They all go for the short run, and damn the public. Maybe every bad residential loan ought to be identified in the local newspaper just before the Foreclosure Notices, and on the Internet, to include its address and geographic coordinates. Start with the Borrower, property, real estate agent, broker, mortgage originator, appraisal reviewer, LENDER, loan packagers and all up the line to the toxic mortgage backed securities. And none of those Mortgage Electronic Recording identifiers
Name names. Because some of this greed began with someone in the community.
Just WHERE would you put all us suburban hicks? Just what the hell is wrong, especially with old suburbs? And do you damned planners just want us to kow tow to your prejudices toward that which you abhorr--that which lies outside your grasp to plan--and your worst enemy--yourselves--that support that which plans and crams us together. The biggest cities begat some of the worst crime, not to mention taxes and schools.
Planning is not a reality show--wake up and smell the actuality. wgaboy

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