I met Eric Von Berg at an ING conference where I had just given a speech. Afterwards, he handed me a copy of this short book he wrote and illustrated: Mad Meat! How securitized lending collapsed the financial system which now exists on life-support.

As the plane waited in the queue for takeoff in Atlanta, I started reading it. Byt he time we hit 2000 feet, I had finished. I found it delightful, and I am pleased that Eric allowed me to share it with you here:

Eric Von Berg is a principal at Newmark Realty Capital in San Francisco, and widely respected as a leader in the field of Commercial Real Estate Finance and Development. A former Chairman of the California Mortgage Bankers Association, Eric now sits on the Commercial Board of Governors for the Mortgage Bankers Association of America. He holds degrees from U.C. Berkeley and the Wharton School of Business and is a licensed California Real Estate Broker and Certified Mortgage Banker. Read more from Eric on his blog Capital Wisdom

~~~

MAD_MEAT! September 2010

Category: Bailouts, Derivatives, Humor

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “A Bailout Parable: Mad Meat”

  1. rktbrkr says:

    Texas subpoenas big banks. The states AGs will be tying the big banks down with subpoenas like Gulliver, first the foreclosures then they dive into the issue of recording fees, on the other front the tranche holders will be suing them, and then there are shareholders lawsuits about the CW and ML acquisitions etc. Lots of political hay to be made locally

    http://www.bizjournals.com/sacramento/news/2010/10/26/big-banks-get-texas-subpoenas-on.html

  2. I look forward to reading this well-timed perspective given the securitization love fest at the FDIC housing finance conference this week.

  3. obsvr-1 says:

    The parable sums up the situation, but will the people rise up to change the love fest between the Governor and the Tinker-Traders, Street Vendors and the other gamers.

    If the mortgage put backs become widespread he will have to update the parable to cover the BARF of sausage.

  4. Expat says:

    It is my understanding that this problem has been resolved. TreasSec, Fed Chief, and the heads of all the major banks have promised us that everything has been taken care of and will not happen again.

    If we can’t trust these guys, who can we trust!