Being in the mortgage industry I’ve seen a lot of stupid crap.
Crap like people with credit scores of 500 getting 100% home mortgage loans.
Crap like people with over $40,000 in collections listed on their credit report, getting 100% home mortgage loans, and the collections not having to be paid off.
Crap like prominent doctors getting 100% interest only arm loans for a mortgage on a new home valued over $400,000, while placing a bridge loan on their current primary residence (valued over $200,000) thinking it will sell before the bridge loan comes due.
Crap like people getting a 95% home mortgage loan on a trailer (YES trailer. What do you think a mobile home is?) where the lot it sits on is valued more than the tin box. Meaning if the borrower goes into foreclosure, the bank is screwed because the majority of the value is coming from the land and not the home.
The list goes on and on….
Sure, lending laws made it easy. Lending laws made it easy to up the value of a home so that the seller could increase the sales price in order to add seller paid closing costs to the mix because the buyer didn’t have more than $100 in savings, yet still they wanted to buy a house at no out of pocket expense, when they could barely pay their rent. And lending laws made it easy to do so.
People got greedy. Lending laws made it easy for an investor to have 10+ properties financed when they had no nest egg to allow for vacancies – meaning the investor had no savings to make the monthly payment on their own volition should they not have a renter in place who paid, or paid on time.
And where does all this get us? It gets us to the point where the government is going to increase the already increasing deficit by “lending” $700 BILLION to bails these lending institutions out so these dead beat people who didn’t pay their bills to begin with won’t lose their home. To bail out these lending institutions who made the dumbass decision to give a loan to a doctor whose debt to income ratio was at 60%+ WITHOUT taking the bridge loan into account!!
Clinton loves the idea of the government bailing these Mensa members out. So does the Bush administration. They are pushing for it. And who is going to pay for it?
Well let’s think about that one, shall we?
- The Wall Street Bailout Plan, Explained by David Stout
Tuesday, September 23, 2008
provided by The Wall Street Journal
Q. Who, really, is going to come up with the $700 billion?
A. American taxpayers will come up with the money, although if
you are bullish on America in the long run, there is reason to hope that the tab
will be less than $700 billion. After the Treasury buys up those troubled
mortgages, it will try to resell them to investors. The Treasury’s involvement
in the crisis and the speed with which Congress is responding could generate
long-range optimism and raise the value of those mortgages, although it is
impossible to say by how much. So it would not be correct to think of the
federal government as simply writing a check for $700 billion. It is just
committing itself to spend that much, if necessary. But the bottom line is, yes,
this bailout could cost American taxpayers a lot of money.
Q. So is it fair to say that Americans who are neither rich nor reckless are being asked to rescue people who are? What is in this package for responsible homeowners of modest means who might be forced out of their homes, perhaps for reasons beyond their control?
A. Yes, you could argue that people who cannot tell soybean futures from puts, calls and options are being asked to clean up the costly mess left by Wall Street. To make the bailout palatable to the public, it is being described as far better than inaction, which administration officials and members of Congress say could imperil the retirement savings and other investments of Americans who are anything but rich.”
And in a seperate publication, The Nehemiah Corporation stated in their weekly newsletter (which I happen to receive – ironically - weekly:)
- While our government is bailing out Wall Street, DPA and H.R. 6694 is looking
out for Main Street. The plan being negotiated by the Bush administration
and Congressional leaders calls for the government to spend up to $700 billion
to bailout Wall Street. Add in the $300 billion from the "Housing Bill" (H.R
3221) passed in July and this bailout is costing taxpayers $1 TRILLION! The
single largest part of this tragedy is that this $1 trillion is being spent
bailout Wall Street, banks, institutional investors and foreign investors!
And while all this is going on in Washington, D.C., who's looking out for
the American Taxpayer? Who's focusing on working class Americans?”
Surprise, fucking Surprise.
So let’s see if I have this right. People like me, people who bust their ass and work hard to pay their bills, people who bought homes WITHIN THEIR MEANS; people who ARE NOT A DRAIN on society, get to foot the bill for other people’s lame-assed, retarded, fucked up decisions.
I don’t get any tax breaks. Hell, because I don’t have any kids, I get even LESS tax breaks. And don’t preach to me about the cost of raising a child. YOU, the parent, chose to have that child. Besides that, I am simply stating what benefits I DON'T get because of what I DON’T do.
I understand Wall Street is affected. Hell, I work in mortgages so how can I not? I also know that it means my retirement is affected. Hell, for that matter, I understand that my social security, the money, MY MONEY, that I busted my ass for, will probably not be available to me when I reach retirement age. Yet again, more of my hard earned dollars benefiting someone else. Why not at least give me the courtesy of deciding who it will benefit instead of deciding for me?
Our world just keeps getting more and more fucked up everyday. I wonder how much it costs to live in New Zealand??
POSTNOTE:
I realize this may be a necessary sacrifice, and that should our financial system collapse, should WALL STREET collapse, that Main Street will as well. I just don't have to be happy about the whole thing.
Reference links:
http://finance.yahoo.com/banking-budgeting/article/105824/The-Wall-Street-Bailout-Plan-Explained
http://www.nehemiahcorp.org/
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