This sucks. All the developers made a fortune in part by arranging risky loans for their buyers. And now we ALL have to bail out the lenders. Why don't the developers pitch in with their profits? Why are we left holding the bag?
Speaking for myself, I saw this financial collapse coming and I had one economics course in college. It doesn't take a genius to have read the tea leaves out there. In fact Gimleteye wrote this January 23rd 2007:
"The mainstream media is pumping up any piece of good news on the housing markets. There is a reason we dissent, and it is not because we are doom-sayers or gold bugs (plenty of blogs, there). Our goal is to pry local and state government from the death grip of land speculators, road pavers, growth-at-any-cost'ers, and from elected officials who are charged with protecting the public health, safety and welfare and the future of Florida. Their disinformation campaigns have gone unchallenged for so long, we have to track back to explain our point of view. In 2000, the Federal Reserve replaced one financial bubble it created, in equity markets, with another, in real estate."
And I wrote on February 27th 2007 a blog called "Why Am I Writing about Boring Real Estate and Appraisals". In that blog I said about the inflated appraisals of real estate:
You might say now: "So, who cares." I think we all ought to care. You know that stupid "trickle down" economy they always talk about. Well that little theory is just smacking you in the face!
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Yeah, it's been a long run--since Reagan, really. The one good thing of this--maybe--is the death of that entire insane ideology. The world's largest flim-flam, and we willingly bought into it. Now we have to pay--again--to get out. It must be fun to be a billionaire.
Word to that brother. I saw this statement in a recent news report about the bailout and freaked me out:
"The Fed said it is expanding its emergency lending efforts to allow commercial banks to finance purchases of asset-backed paper from money market funds. The central bank's move should help the funds meet demands for redemptions."
Tapping mutual funds? That's folks retirements....scary stuff. Now, that Wall Street is rallying, might be good to get out while prices are up.
That same piece I quoted. This little excerpt is from that article too:
"As we all know, lax lending practices earlier this decade led to irresponsible lending and irresponsible borrowing. This simply put too many families into mortgages they could not afford," Paulson said.
At a news conference in which he only took three questions, Paulson was asked the approximate dollar size of the government intervention. "We're talking hundreds of billions," he said.
If anyone sees Jorge Perez, please - call him an @sshole for me. Aprreciate it.
What about investment bankers and mortgage brokers who got commissions for this nightmare? NEW RULE, commissions are paid after the first ten years.
Watching McCain on Cspan right now. Just admitted that he got "led down a path" with the mortgage industry.
I have never heard such a load of BS than what this former "honorable" American soldier is spewing right now. He's trying to walk a line between Bush and the lack of regulation from his party's control of Congress. It's absolutely shameful. You can flat our see him reading off the telepromter on what he's told to say - it's disgusting.
He takes absolutely ZERO accountability for the housing fiasco. His party had control of Congress and the Presidency (and some might say the Supreme Court as well) and he takes no responsibility at all for what has occurred.
He tries to claim tha mantle of reformer, uses the term "on my watch", yet uses it in the future tense rather than the past. Unbelievable! Same ole'squalid tale - blame someone else and no accountability whatsoever.
You can bet I'll be at the gun range tomorrow, letting off a little aggression from having to call my financial advsor and tellig him to get EVERYTHING out of mutual funds and into FDIC insured accounts.
It's f'n scary folks - be afraid- very afraid.
Neo - I too am afraid. This is what happens when we elect nitwits. They dig the hole deeper and deaper. As I have been reporting for years people were getting 100% mortgages (and more): How was that possible? In 1993 I got a no income check mortage but I put 30% down. The bank would have made out like a bandit if I defaulted. What changed? Who was in power in 1993?
I am still very afraid of these Nehemiah type downpayments that production homebuilders use...anyone else? Are they still going on? They will push people further into foreclosures because people without downpayments can get them through this program by taking a test online (it is a loophole because a developer can't technically give you a downpayment on a new home but this non profit can and somehow it is getting money from those same builders/developers offering the properties). Read about the program in my July 15th Blog.
Frankly, I can't imagine a worse speciman to get us through this sinking economy than that very annoying, lipstick wearing, gun toting "what does the Vice President actually do" person. I am very afraid and her voice is very grating. And might I remind you all: Her State has about 1/3 to 1/2 the population of Miami Dade County. So it would be like Carlos Alvarez becomming president.
NEXT time someone talks about the waste of the welfare state, perhaps someone should remind them of this welfare for the rich scheme? That there is not a huge protest over this is just amazing..... I mean how can any populist conservative justify this policy? Bailing out the very richest people in the world? Creating the ultimate moral hazard and sticking the avg. working person with the bill. Wow!
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