Comments on: Simple, stupid.

By: Nancy

Nancy — Wed, 30 Apr 2008 00:53:00 +0000

Actually there is a simple answer to what is called the “subprime problem” (although it is much more complex than that). The answer is greed. Greed so overwhelming that everyone rushed into the act. The ratings agencies discovered that if they gave good ratings to tranches, that they could make more money. (Ratings agencies give ratings only when they are paid to give a rating). Banks and mortgage companies discovered that by shoveling the bad loans onto someone else, they could make more money. Mortgage brokers found that the more loans they arranged, the more money they got. In some cases companies even advertised “we don’t get paid until we say ‘yes’.” And home buyers saw that prices were rising so fast they were about to be cut out of the market, or they were told that they could leverage their house into a fortune.
It’s like the story of the little boy who held back the waters by holding his finger in the dike. The moment he could no longer hold on, the waters burst through.

By: nancy

nancy — Tue, 29 Apr 2008 15:18:06 +0000

Actually, Jolene, that rule of editing applies to all sorts of text. If you can't explain it, you don't understand it. And if you don't understand it, you'll never make others do it. I'm a big fan of the "tell me in one sentence" rule. "But that's oversimplifying!" writers sometimes say. OK. Then oversimplify it into one sentence, but if you can't boil it down to that nugget, then you don't have a nugget. It's that (over)simple. And John's right -- if the people dealing this crap don't get it, it's not safe.

By: Jolene

Jolene — Tue, 29 Apr 2008 13:18:07 +0000

Good position on explaining complexity, John c. I’ve spent a lot of my life editing academic prose and, over and over, I’ve found that, when people can’t explain what they’re talking about clearly, it’s usually because they don’t know.

By: Jolene

Jolene — Tue, 29 Apr 2008 13:11:17 +0000

Thanks for your thoughts, John. I’m in Alexandria, a long way from where the tornadoes hit. You’re right about the pictures, though. They’re really shocking.

By: John

John — Tue, 29 Apr 2008 12:58:07 +0000

Dorothy, I forgot all about your lovely daughter. I am glad she is okay.

By: John c

John c — Tue, 29 Apr 2008 12:55:28 +0000

I happen to be a non-business type who is friends with lots of business types, including folks who have risen to very high levels. Nothing frosts me more than when I wonder how some new fangled high-finance trend works, and that it sure as heck seems like a lousy idea, and they give me that patronizing look and say: “You just don’t understand.“
What I have learned is that there are plenty of fancy schmancy business things that make perfectly good sense and smart people can explain them to me. Then there are the ones that don’t make sense and are probably scams thought up by the smartest of the smart, who pawn them off on the not quite smartest of the smarts, who can’t explain them to people like me and are too embarrassed to say they don’t really understand them themselves and all they know is the stock price keeps going up. These are the folks who thought Enron was the greatest thing since sliced bread, and laughed when I wondered how the bleep AOL could be worth more than General Motors, let alone Time Inc. Bottom line, I used to thing they were right and I was wrong. Not anymore. If no one can explain it to me, it’s a crock.

By: Dorothy

Dorothy — Tue, 29 Apr 2008 12:47:16 +0000

John my copy editor daughter is in Norfolk, and I worried about her for awhile, but I talked to her at 9:15 PM and she was fine. Their website is still moving very slowly this morning. I could not even get it to load last night.

By: John

John — Tue, 29 Apr 2008 11:45:11 +0000

Jolene, I can’t remember which section of the state you live in, but I hope all is well at your home. Those storms were a shocker to see on the tube.

By: alex

alex — Tue, 29 Apr 2008 11:44:48 +0000

Not sure what all the fuss is about. Wright doesn’t bother me in the least, and I’m sure that anyone who claims to be bothered wasn’t planning on voting for Obama anyway.

Totally off topic, I have mallards nesting up against my house! A few weeks ago I saw the male standing on my driveway as if he owned it. Subsequently I saw the female multiple times waddling around in my flowerbeds. I figured they must have a nest down by the water somewhere, probably not even in my yard. Then last night I discovered they’re living in a bed of pachysandra and juniper right outside my TV room. This should make for some great pix/video when they start teaching their babies to swim.

By: Dexter

Dexter — Tue, 29 Apr 2008 07:09:53 +0000

THREE O'CLOCK and ALL's WELL! As a night owl, I thought I would assure you of that. Obama 's current albatross is Preacher Wright, as David Axelrod cringes as Wright gets more and more publicity. Also, keeping his promise to introduce race-discussion to TV , Don Imus had the wonderful Dick Gregory on his show Monday. Even as Imus signed on with WABC and began praising Limbaugh and Hannity and Hume, he has indeed given us some insightful African American commentators on his show.