50% Default Rate

There are two rates in banking.

A delinquency rate which shows what percent of your loans are late or past due.

And a default rate. The percent of your loans that have gone into default.

I recently visited an old employer of mine to visit the friends I had there. My boss had left the firm to go to another place and I found out through the grape vine that he left the legacy of a

50% DEFAULT RATE

Yes, one out of every two loans this idiot made ended up in default (I can only imagine what the delinquency rate is).

Now, you see. Every day I am told by people who watched too much 90210 when they were kids, and had college paid for, and never really had much strife in their lives that I need to "calm down." And just "play the game." That "it can't be that bad." And that I should just "be a team player."

And then I try to convey to them the sheer idiocy that was occurring during this housing bubble, but no, he's just some crazy guy. He's just some kid that doesn't like to play ball. What does he know? He's just some young punk, economist, while his boss has gray hair, the truest sign of wisdom. He's just exaggerating the true problems he's running into to beget pity. Be a true American working cog, suck it up, stick your head in the sand and play nice with the other kids in the sandbox.

And so with this newfound data, I give all of those who questioned me and advocated conforming and capitulation the proverbial "I told you so."

Of course, you would think with a 50% default rate my boss would be run out of town and never be allowed to work in banking again. You'd think rumor would spread as to this individual's complete incompetence and ignorance and desire to put commission over credit. You'd think nobody would be as foolish enough to hire him ever again.

He got a new job. At a new bank.

I asked one of the employees, "How in hell did he get a job with a track record like that?"

"I think he has some relatives that work there."

Ahhh, nepotism.

Perhaps the head-in-the-sanders are right. Just do what you're told. Because even if it hastens the collapse of the company and the collapse of the nation, at least you make some money on they way down.

Morals? Integrity?

Pha!!! That's so 1950's!