Make money creating the crisis. Make money solving it!

Here's the skinny. The guy gives tons of loans to people who can't afford them and sets the stage for the sub-prime crisis. The crisis erupts. He buys the loans back from the government ridiculously cheaper than the government bought them from the banks using taxpayers money. As a result he can afford to lower the interest homeowners pay on those loans and still make a 20% profit from them. Desperate to keep their houses, homeowners will gladly say thank you to him for helping them keep their houses.

And I want to ask a very simple question. Why is the government selling the loans to him? Why can't the government hire Him or other people like him to do the job of lowering the interest rate on those loans itself? Why let Him do the job via PennyMac and let Him keep the 20% profit? Why not have the government do the job and return the 20% profit to taxpayers whose money it used to buy the loans in the first place?

Is our government stupid, incapable or what? Or is the former No2 of Countrywide Financial that brilliant?

I have to say, just by looking at the name of his company PennyMac, he is a brilliant shyster. Penny for thriftiness and Mac for creative! Son-of-a...spiv :((

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Pay-Per-Month Online Bookstores

This thought was posted on Thinkaloo on 26 March 2008 by member nadia

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I love to read books and I was thinking of a new business model for online bookstores. Allow customers who pay a monthly fee to either rent or buy as many e-books as they want. When the customer downloads the books, the publishers and writers will then share a commission from the monthly fee that was paid by the customer.

This is value for money for customers who will have access to as many books as they want. Writers and publishers will benefit from increased sales of their books. I am curious if Amazon or Barnes & Nobles or any of the other major online bookstores will move into this new business model.

The model already works for music and movies, it is a matter of applying it to books next as more of them become available in digital format.