CDOs For A New Generation

Can we puhleeas learn from our own past, if not from history?

When a consumer sustains a debt, the creditor can either attempt to personally collect it, or sell the debt to one of America’s 4,500 collection agencies. That auction process is completely broken, producing the ultimate in caveat emptor.

“Creditors provide debt buyers with almost no data, no original contract, no backup information,” said Ira Rheingold, executive director of the National Association of Consumer Attorneys. “The records are so poor that sometimes the amount of the debt is wrong too.” In a world of big data, the debt buyer market operates like it’s still the 1970s, where the commodity is merely a spreadsheet full of hints and leads, instead of reliable information about debts. The creditors, frequently big banks, try to indemnify themselves through the purchase agreement, in which they make no warranties about the legitimacy of the account information.

That’s so similar to the housing bubble even Republicans in Congress ought to recognize it.

But then permanent dunce-itude seems to be a feature, not a bug. I think Marty is the one who is embarrassed by all of this, but if he admitted he was wrong, well that would be like falling off a ladder.

Also too, the trouble I go to to make NYT links shorter than the articles they reference for ya. And yes, bit links work, but then why let even more people know what you’re doing? What a clusterf’d culture!


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