This whole mortgage mess has me really frustrated.
The people who caused it aren’t going to be blamed though…they’re the ones in charge of “fixing” it.
I’ve had some readers email me saying that I “didn’t know what I was talking about.” But, in reality I do. Those low income programs that precipitated this mortgage meltdown wound up being used by investors in upscale neighborhoods, you know, the “house flippers? Programs like zero down, 1 year ARMs, 3 year ARMs, 5 year ARMs, 125% loans, no qualifying, and on and on started the downward spiral in my opinion and I remember when they got started. I wrote this article based on my personal experiences when I worked for a large regional bank and mortgage company back in the early 90′s. It blew my mind who could get a loan back then. I remember being told by my boss to “just process the paperwork, it’ll go through” for people who had no job and were late on the rest of their accounts.
The whole problem is the “unintended consequences” that government intervention never foresees.
Now we’re hearing screams for “oversight” by a group (Congress) that, $1.8 trillion won’t cover its OWN debt, uses cash accounting that ignores future liabilities (I have $100 in my bank account so I’m in the black!), practices dirty accounting tricks like “forward funding,” “advance funding,” and “delayed obligations,” and other deceptive tricks to hide its precipitous finances from auditors and taxpayers.
Congress routinely borrows from the taxpayer’s pension plan (Social Security) to pay its current obligations, ignoring its future obligation. Its accountants then claim that because the Congress owes the borrowed money to its own taxpayers and not to outside creditors, the resulting hole in Social Security doesn’t really count as a liability.
Right now, estimates are that the Federal Government, YOUR Federal Government, MY Federal Government is in debt…are you ready?…almost TEN TRILLION DOLLARS. And these are the guys who want to “insure oversight?”
Throw them ALL out.
I’m just really frustrated right now…
I never intended this blog to go off on a political tangent, but when it’s so “in your face” all day long, it’s hard not to weigh in on my thoughts.
Tomorrow is back to regularly scheduled programming.