Subprime Woes and the Banks as Fall Guys
Incredible, thats all I can say>
The Demokrats cried, President Bush (the Compassionate Republican) caved and the conception of the Subprime Credit Crunching downturn that as far as timeing and the Presidential Primary goes, couldn't be better.
The Banks are being Keel hulled with Corporations thrown on the fire for good measure.
excerpts from article dated Nov. 1st 2004
Newsweek
When Buying By THe Poor Backfires
Misguided Policy
But the steady push of homeownership to lower and lower income groups, while positive in many ways, is not an unadulterated good. Despite conventional wisdom, extensive research has shown that homeownership is not the most reliable means of building wealth for low-income families, especially those with unreliable incomes and few other investments. Over the long run, home prices tend to rise more slowly than other assets, such as stocks. Moreover, poor families are now so easily able to tap their home equity to pay pressing bills that many don't accumulate wealth. Finally, as more poor families buy homes with low-downpayment mortgages, the odds of seeing their investments wiped out goes way up. Such loans make it easier to get in the door but raise monthly payments
That's a message few people want to hear these days, with ownership the main plank of national housing policy. Last year, Congress passed the Bush-backed American Dream Downpayment Act, which gives money to low- and moderate-income families to help cover their downpayments for Federal Housing Authority-insured properties. In his reelection campaign, Bush has advocated allowing the FHA to insure loans that involve no downpayment at all, compared with the current minimum of 3%. Meanwhile, Fannie Mae is aggressively promoting lending to low-income families. Where it once bought only loans with 20% downpayments, now it supports offers such as "Special 100," which requires no downpayment.
So, here we are with a HUGE, WORLDWIDE, worthless housing derivatives problem with mortgage banks going under and well, you're living these times as well as me so I won't go into it!
But isn't amazing how one minute everyones screaming to to put the unqualified into homes by pleading the banks into irresponsible lending practices (no downpayment, no documentation etc)for humanitarian reasons and then when it blows up like a cheap furnace everyone wants to blame the poor guy who tried to make the American Dream a reality for someone with no business trying to maintain financial responsibilities. Link
The Demokrats cried, President Bush (the Compassionate Republican) caved and the conception of the Subprime Credit Crunching downturn that as far as timeing and the Presidential Primary goes, couldn't be better.
The Banks are being Keel hulled with Corporations thrown on the fire for good measure.
excerpts from article dated Nov. 1st 2004
Newsweek
When Buying By THe Poor Backfires
Misguided Policy
But the steady push of homeownership to lower and lower income groups, while positive in many ways, is not an unadulterated good. Despite conventional wisdom, extensive research has shown that homeownership is not the most reliable means of building wealth for low-income families, especially those with unreliable incomes and few other investments. Over the long run, home prices tend to rise more slowly than other assets, such as stocks. Moreover, poor families are now so easily able to tap their home equity to pay pressing bills that many don't accumulate wealth. Finally, as more poor families buy homes with low-downpayment mortgages, the odds of seeing their investments wiped out goes way up. Such loans make it easier to get in the door but raise monthly payments
That's a message few people want to hear these days, with ownership the main plank of national housing policy. Last year, Congress passed the Bush-backed American Dream Downpayment Act, which gives money to low- and moderate-income families to help cover their downpayments for Federal Housing Authority-insured properties. In his reelection campaign, Bush has advocated allowing the FHA to insure loans that involve no downpayment at all, compared with the current minimum of 3%. Meanwhile, Fannie Mae is aggressively promoting lending to low-income families. Where it once bought only loans with 20% downpayments, now it supports offers such as "Special 100," which requires no downpayment.
So, here we are with a HUGE, WORLDWIDE, worthless housing derivatives problem with mortgage banks going under and well, you're living these times as well as me so I won't go into it!
But isn't amazing how one minute everyones screaming to to put the unqualified into homes by pleading the banks into irresponsible lending practices (no downpayment, no documentation etc)for humanitarian reasons and then when it blows up like a cheap furnace everyone wants to blame the poor guy who tried to make the American Dream a reality for someone with no business trying to maintain financial responsibilities. Link
posted by Cu'cullen | 7:30 PM
1 Comments:
Good words.
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