IT'S SPREADING

My cold.  Started with a sore throat went to the head and now a full-fledged involvement including sinuses.  Can't see, can't think.  Used to go to work all the time with something like this in years back but today?  Heck, all I want to do is sleep.  So this will be short.

Another thing that is spreading is dumbness among the world's regulatory officials.  Last week it was Billy the Dud and Hughes.  Not to be outdone, our Comptroller of the Currency, Thomas Curry, lept into the contest with perhaps the dumbest statement of all.  Now, you may ask "What is the Comptroller of the Currency and what does he do?"  "No idea, " sez I in this modern era, except take up space, grow staff and spend a lot of money.  He is supposed to regulate national banks but none that really count.  That is done by the Fed.  Nevertheless, Mr. Curry announced today that he has found The Next Big Bubble.  Car Loans.

Seems that banks are making a lot of them and financing dealer loans as well.  Looks like mortgage lending to him.

I suspect if you drove a car into the driveway of Mr. Curry's house, he would be hard pressed to distinguish between the house and the car.  He is a  Democratic political hack from the Commonwealth of Massachusetts and as we see so much of these days, owned and operated by Crazy Lizzy, whose regulatory career in Ma. consisted of suing any financial institution that Eric Holder sued.  But, he thinks he needs the publicity and found a willing audience in the Chicken Littles of the press who wouldn't know a bubble if they were inside one.

Just for Mr. Curry's benefit:  Tommy me Boyo,  Houses and cars are completely different.  House loans go from 10 to 30 years; cars are financed out to 5 years max.  Repossessing a house takes months; repossesing a car takes one call to a 280 pound guy with tattoos and a gun and you generally have it it 48 hours.  Selling a repossessed house is a bugger; selling a car is a snap and even if you can't sell it any clunker is worth about $5,000 for scrap.  But here's the real issue...

Me Boyo, why do you think there is so much financing of cars?  Well, how 'bout people want to buy them?  And why do they want to buy them?  Because the financing is damn near free!  And why is that?  Well Tommy, why don't you take a walk down to Foggy Bottom and ask Janet.  She doesn't know either but you will get an answer.  Oh, you might also want to have a word with Il Duce.  You see, car sales are one of the few thing working in this economy.  Bubbles?  This is America at work!  Next time you might also want to check with Crazy Lizzy.  Bet she's already received a call from GM.  Not a good thing for one's career.

I'm going to bed.