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Like worms that surface after a torrential rain, revelations that emerge when an asset bubble bursts are often unattractive, involving dubious industry practices and even fraud. In the coming weeks, some mortgage market participants predict, investors will learn not only how lax real estate lending standards became, but also how hard to value these opaque securities are and how easy their values are to prop up.

Crisis Looms in Mortgages
By GRETCHEN MORGENSON
The New York Times, March 11, 2007

Interesting comparison, but I'm not sure it's the most appropriate given the circumstances. Sure, the worms appear "unattractive" to you and me, but most people don't eat worms outside of reality television. If we were birds, the worms would be a wonderful treat after having perched outside on a tree branch for hours during the torrential rain. Worms are also good for the soil, and you can't say that about irresponsible subprime lenders, ineffective regulators, or anyone else responsible for the unfolding fiscal nightmare.

In fact, one could say that America's worms bore the brunt of the housing boom. Overinflated property values led to over-allocation of investment in the real-estate sector, which contributed to an excess number of housing starts, higher utilization of earthmoving equipment, and the greatest destruction of worm habitat this country has ever seen.

The worms deserve a better analogy. The rusty nails stuck in the blown-out tire. Loaded dice found at a raided underground casino. Politicians' names discovered in a madame's little black book. The dead body in the trunk of the speeding motorist. Sickness, disease or rot. Leave the worms out of it.

Labels: economics, finance, mortgage, NYT