How Government is Run

From the Washington Times:Regulators under fire for ignoring red flags.

Sheila Bair logged onto her e-mail account recently and got a pop-up ad offering a $175,000 home loan with monthly payments of only $400.

"I thought, 'Oh no, it's coming back already,' " said Mrs. Bair, the Federal Deposit Insurance Corp. chairman who had spotted problems with abusive and risky mortgages long before the mortgage crisis broke out last year.

The pop-up on the screen took her back several years to the time she first saw trouble brewing. The ads had been the warning flags: pop-ups, spam e-mails and junk-mail fliers offering loans at extraordinarily easy terms and low rates without explaining that the payments would eventually shoot up to unaffordable levels — a practice that will be banned in the future.

"Back then, we mainly looked at it as a consumer issue. I don't think anybody thought it had economic implications," Mrs. Bair said. Few people at the time had "a full appreciation of the costs of these mortgages, or [realized that] if the market stopped going up [borrowers] would lose their ability to pay."

First, we've met this bitch before right here. She is stupider than a rock, and the EE is insulting the rock, and he apologizes.

Secondly, if the buyers could only "pay" if the price was going up means that they were pulling out the appreciation to "pay" the monthly nut.

That is the freakin' definition of a Ponzi scheme which is illegal, the EE will point out to the ignorant government-salary bitch, for bleedin' obvious reasons.

However, we've lived through the Ultimate Ponzi Scheme.

What are the chances that she is doing this to preserve her job?