July 2008

Midway through the year of 2008,
Performance is grim through June year to date.
Of industry sectors, banks have fallen the most,
As they’ve watched their loan books turn quickly to toast.
The brokers of course, they too have had issues,
For the memory of Bear, we can but cry in our tissues.
Mortgage insurers as well, are now in a mess,
Happy are those who’ve owned a dose of their CDS.
Regional banks have succumbed and are now in a jam,
IndyMac is the newest possession of dear Uncle Sam.
Of Fannie and Freddie, what will they write of their tale?
That when they came close to the edge, they were too big to fail.

Who or what is to blame for our terrible plight?
For these problems that keep us awake in the night?
The home builders, for one, who just built way too many,
Why build one or two, when there’s financing for twenty?
Mortgage bankers and brokers, who provided the grease,
In this religion of lending, they were the priests.
Wall Street played its part, with the securitization,
Those bonuses you know, can be quite a temptation.
The rating agencies, they too, were all part of this trade,
Triple A they all called it, no matter the grade.
And the borrowers of course, we must not forget,
Liar loans they filled out, without any regret.

Who can now save us, who will come to our aid?
We all bought these big houses, and now feel so betrayed.
Mister Bernanke, can you please lower that rate?
What do you mean, you worry that prices will start to inflate?
Mister Paulson, please continue the bailouts without quarrel.
What’s this that you say, you’ll create hazard moral?
Mister Bush, your people in need you will surely remember?
Oh, how could I forget, you’ll be gone come November.
Mister Buffet, buy these homes before they’re all repossessed,
You say there’s no value so you won’t come invest?

So we’re all by ourselves, to fend on our own,
To make do with our problems, to pay off that loan.
Stay calm and don’t panic, let’s think this one through.
After all we’re Americans, we’ll know what to do.
Don’t cool down your house and please skip that vacation,
Don’t buy food or energy, that’s not part of core inflation.
That tax rebate check, don’t you spend it on shopping,
Didn’t you hear, the housing bubble is popping?
Sell the jewels, sell the gold, sell the family possessions,
It’ll help ease the pain of this beast of recessions.
And when you’re feeling depressed, by our debt in the trillions,
Have a beer, try a Bud, it’s now owned by Brazilians.