On Saturday night I watched the housing bubble movie “The Big Short” and concluded that Donald Trump’s campaign has some amazing parallels to the 2007 collapse of the financial markets.
Start with the premise that real estate is a safe investment because it always goes up. Compare that to the premise that government should run like a business and who better to do that than a successful business person.
The last Wall Street explanation for the 2007 collapse was “poor people” and “illegal immigration”. Trump’s big, beautiful wall as an economic recovery plan is just a variation on the same theme compounded by the illusion Mexico is going to pay for it.
The Wall Street traders, their quants and mortgage brokers were brash and arrogant which only added to their perceived credibility as pseudo authorities. Is “I could stand in the middle of 5th Avenue and shoot somebody and I wouldn’t lose voters” brash and arrogant enough? If not there are many other examples.
The 2001 recession had hardly disappeared from our rear view mirror when the decisions of 2005 put the housing bubble fiasco in motion. The 2008 & 2012 elections are recent memories and they began turning this great ship we call America to the left. Now, just a few years later, we are anxious to hire another imperial President to turn it back to the right. It makes no difference, right or left, as apparently trampling the Constitution is okay as long as it us gets something we like. A gnat has a longer attention span than many American voters.
During the housing bubble anyone who questioned mortgage-backed securities or CDO’s was not bright enough to understand the machinations of Wall Street. During this election cycle ridicule and humiliating personal attacks are the responses for anyone questioning Trump’s limited policy positions.
And at the end of the movie, none of the perpetrators were even charged and the American people paid the bill in the form of a massive bailout and a crushing national debt increase. The last eight years has left us with a big change in the form of more debt and little hope. Expect similar results with his excellency, President Trump.
Patrick Malone is a Business Advisor and Leadership Mentor headquartered in Blairsville, Georgia. He co-hosts Mountain Mornings, a weekday local news program, and hosts This Week in Blairsville a weekend program on WJUL/WJRB. He is a mentor in Union County High School, President of his church Council and President of LMMA Inc. a non-profit focused on motorcycle awareness and safety.