The roots of the subprime mortgage crisis, and everything that followed. From a David Foster Wallace article

One reads David Foster Wallace‘s long-form journalism collected in Consider the Lobster slowly and with care, knowing there won’t be any more of his pieces for Harper’s, The New York Observer, Premiere and so on. (Incidentally, Gourmet, the magazine that commissioned the title story, has recently ceased to exist, too.) One of these pieces, appearing in this collection in its full uncut glory, got a brief revival in the 2008 elections: it is “Up, Simba”, where DFW got to cover on behalf of Rolling Stone none other than John McCain on the campaign trail in the 2000 Republican primary, which McCain lost to George W. Bush after a non-inconsiderable amount of “negative advertising”.

“Host”, the piece that closes the collection, profiles for the Atlantic Monthly a conservative radio talk show host named John Ziegler working at KFI in Los Angeles, and it is insightful and probing and sad. I just wanted to notice one little thing, and point it out to you. When the host is off the air, the writer’s ear does not tune out to the mindless chatter of the advertising segments. The writer keeps listening. And (this is 2004) he observes that there is quite a bit more of a certain type of radio advertising than there used to be.

As of spring ’04, though, the most frequent and concussive spots on KFI are for mortgage and home-refi companies. In just a few slumped, glazed hours of listening, a member of this station’s audience can hear both canned and live-read ads for Green Light Financial, HMS Capital, Home Field Financial, Benchmark Lending. Over and over. Pacific Home Financial, Lenox National Lending, U.S. Mortgage Capital, Crestline Funding, Home Savings Mortgage, Advantix Lending, Reverse mortgages, negative amortization, adjustable rates, APR, FICO… where did all these firms come from? What were these guys doing five years ago? Why is KFI’s audience seen as so especially ripe and ready for refi? Betterloans.com, lendingtree.com, Union Bank of California, bethebroker.net, on and on and on.

I don’t want to attribute any prescience to DFW’s words. While he might be read as implying that nothing good would come of it, this may very well be just our interpretation as readers in 2010, with the privilege of what we know today. As a writer, he merely observed and reported. May we observe the world around us with the same open-mindedness and insight.

2 thoughts on “The roots of the subprime mortgage crisis, and everything that followed. From a David Foster Wallace article

  1. Pingback: Five American Writers « Live from Planet Paola

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