This article http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=75717, about a new book by a University of Texas economist, sheds some light on the mortgage mess and what caused it.
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Whose Mortgage Crisis?
- Thread starter Major B
- Start date
Since WW2 there has been no excuse for anyone with normal health and mind to be poor. The recent poor generation are people who can't handle cash money and plan for the future.
That being said, our grandkids will have a tough row to hoe because the post WW2 freak conditions have faded and we are reverting to the world historical norm of 80% working poor.
Advise your grandkids to stay in school and get government jobs, even police and fire. Our owners will take care of the people who have the potential to cause them trouble.
That being said, our grandkids will have a tough row to hoe because the post WW2 freak conditions have faded and we are reverting to the world historical norm of 80% working poor.
Advise your grandkids to stay in school and get government jobs, even police and fire. Our owners will take care of the people who have the potential to cause them trouble.
Haven't read the thread yet, My opinion is it's "Those who spend more than more than they bring in" and this includes the U.S. government. The day this was going to happen was bound to happen sooner or later. The day will also come for our government, they cannot continue to spend as they do. When the "stuff" hits the fan watch out.
I have a simpler analogy of what happened.
We had a great program to help low income Americans take part in the dream. All was going well until someone gave a tax break to big business to see their jobs overseas. Now lets see, mortgages to be paid so we send the jobs overseas = loans don't get paid. How hard is that.
over 600K year to date has joined the ranks of the unemployed. i don't think one of them took out a mortgage with the intent of not paying it back. But if we take their job, kind of hard to pay.
You want to fix the problem, simple, bring jobs back to America so these people can pay their mortgage.
We had a great program to help low income Americans take part in the dream. All was going well until someone gave a tax break to big business to see their jobs overseas. Now lets see, mortgages to be paid so we send the jobs overseas = loans don't get paid. How hard is that.
over 600K year to date has joined the ranks of the unemployed. i don't think one of them took out a mortgage with the intent of not paying it back. But if we take their job, kind of hard to pay.
You want to fix the problem, simple, bring jobs back to America so these people can pay their mortgage.
Petra-O IX
Active Member
I think the No. 1 reason for this crisis came about is when lending institutions decided they could create a pemanent income for themselves through a lifetime of indentured servitude
Bob Alkire
New Member
I agree in part with what he said.
We had to many folks buying homes who couldn't pay for a home or keep one up. Some sound facts, my first home, I had to have 25% down, my payment was 25% of my months net pay or less, had to show I had at lease 10% of my net pay per month for house up keep. So many today pay 50% of their pay per month for payment, we are setting those folks up to fall.
Side note was taught, our form of government can not support more than 25 to 30% of the work force working for the government, today if we count all forms of government we are near 50% or more.
We had to many folks buying homes who couldn't pay for a home or keep one up. Some sound facts, my first home, I had to have 25% down, my payment was 25% of my months net pay or less, had to show I had at lease 10% of my net pay per month for house up keep. So many today pay 50% of their pay per month for payment, we are setting those folks up to fall.
Side note was taught, our form of government can not support more than 25 to 30% of the work force working for the government, today if we count all forms of government we are near 50% or more.
The American Dream never needed a program. And it wasn't going well ... The program (if I understand you) created the problem by promising things to people who could not afford them.
But you don't know how many of those 600K are actually unemployable (that is, can't find a job), and how many are transitional, and how many are part of the home/foreclosure situation.
How would this help? The reason jobs went overseas is labor costs. If you bring the jobs here, employers can't afford to hire workers at the rates that workers want. You can't squeeze blood from a turnip. Furthermore, it distresses me to hear you say that people in other countries don't deserve a chance to get out of poverty.
Pastor Larry said:
I do not disagree with the basic idea you express here. The question is, "How do we find the balance of helping people escape from poverty in other countries without imporvishing our own people?" It is not a simple or easy question to answer, especially when we have an administration that places the profits of corporations above the welfare of its own people.
The rules under the minority housing programs put the banks in the position of being able to write risky loans for a social reason--they were not really allowed to use their well-proven actuarial tables, and they sold houses to people with bad credit, gave them teaser rates, etc.
In a nutshell, the government created regulations to coerce lenders into lending money to people who, for the most part, werent going to fulfill their obligations. Now the American taxpayer will end up footing the bill. We ended up being co-signers on loans for people with no collateral to back up their loan. The "American Dream" has become the "American Expectation".
It seems this whole debacle is a back-door way for the liberals to provide low-cost housing for the poor. The sad part of all this is that my wife and I chose not to dive into this sub-prime temptation and live in an apartment and now have to foot the bill for all the idiots who have been foreclosed on and have to put their high definition TVs in storage.
It seems this whole debacle is a back-door way for the liberals to provide low-cost housing for the poor. The sad part of all this is that my wife and I chose not to dive into this sub-prime temptation and live in an apartment and now have to foot the bill for all the idiots who have been foreclosed on and have to put their high definition TVs in storage.
Pastor Larry said:
Not everyone could do like Bob Alkire save 25% down. The FHA program backed loans so people could move in with less down and with reduced credit scores. However, bankers took advantage and began the sub-prime market and suckering people in with balloon ARM's etc... So where the program gave American's access to the dream, the banker made the dread a nightmare.
These programs were foundationally good all around, builders began building, jobs were created in the housing industry and it was a good solid boost to the economy. It was a sound program until Bush gave incentives for companies to send these peoples jobs overseas. They were then not able to pay their mortgage and here was are now as taxpayers buying those loans from the banks. So the stupid tax break that was given to these companies not only increased our unemployment rate but it also gave us this bill for the debt these people had.
Pastor Larry said:
You didn't see the resent report that unemployment is at a record high?What's deceptive about that 6.1% number is it only includes people who file for benefits. Many people have long exhausted their benefits and are still out looking for employment. Others found a job but no where close to the salary they were making. That 6.1% number didn't include them.
Pastor Larry said:
This is just not a fact and would seem the case if CEO's and other top executives didn't begin getting record bonuses even in companies that were failing. They began getting hundreds of millions while the worker bee's got laid off, crappy united health care health insurance, no pension, nickels for a bonus and a 401K that's about to be liquidated.
The reason Bush encouraged companies to reach out to foreign labor was to stimulate foreign economies which should have boosted the global market and given our products a higher consumer base. Instead, we sent our jobs overseas while the Japanese and Chinese benefited from the increased consumers.
Another bad conservative idea which again threw the American people under the bus. Why can't the conservatives admit we can't pay our mortgage loans if our jobs are sent overseas?
And sure, don't be distressed, I believe other countries deserve a chance to get out of poverty, but not at American's expense. I hope you like your new $700 Billion contribution to get those "other countries out of poverty"? You sure it was worth it?
Ps104_33 said:
This is an extremely unfair conclusion, no one took out a loan with the intentions of not paying it back. I don't care how bad your credit is, no one wants to be foreclosed on with children and all you have being put out on the streets. Everyone of those people intended and still want to pay back their mortgage, it's just hard to do without a job. I strongly believe if we generate them a job they will begin making their payments and the economy will fix itself.
I am not sure, but I think LeBuick was talking about these mortgage deals that have come home to roost.
I am speaking of those who are without a job for a month or two, not long-term unemployed. I was talking about someone yesterday who says that there are places he knows of in other states that have good paying jobs and can't give them away because people don't want to move.
But why shouldn't they? If those companies had to pay those taxes, it has affects on the market, and therefore on people's life savings and investments, most of which are held by middle class people.
I don't think we need to look for a balance. We need the government to stay out of it. Profits of corporations are important because corporations pay people's salaries and dividends to their mutual funds and 401Ks, and the like. So every dollar that gets paid to the government is a dollar that doesn't get paid to an employee or a stock holder.
No, the American dream was never a house you were making too little money to pay for. I have realtor's in my church who would tell me about people buying more house than they could afford, trusting on the market bubble to make them rich when they sold it. That is greed.
But you don't know how many people of these there are, and therefore, it is a meaningless number.
So they are not unemployed. There are no guarantees in life and salary is included.
If you had all the bonuses paid to CEOs is wouldn't begin to pay for these other things.
This isn't a conservative liberal issue. No one disputes this. But you are attackign teh wrong thing.
Sure, I see. "Everyone deserves a shot so long as it doesn't affect my standard of living."
It wasn't my contribution. Unfortunately, I am being forced to pay for decades of greed at all levels of our society, particularly by people who bought more house than they could afford. That's the problem, and your reasoning is simply bad. And obviously bad.
Pastor Larry said:
This where your thinking is wrong, when the people bought the house they were able to make the payment. If they weren't, then these people in your Church committed some type of fraud. Their financial position changed after they got the loan. Usually because they lost their job and is either unemployed or underemployed.
Pastor Larry said:
Only if you turn a blind eye to your suffering brothers and sisters as you pass them by on the Damascus road. These numbers represent people in need and most have family with children who should have to bear the burden of our mistakes. If we bail out Wall street, why not also bail out main street.
Pastor Larry said:
You must be joking, $100 Million won't make a good pension plan? Where do you live?
Ed Edwards
<img src=/Ed.gif>
It is my Mortgage crisis:
1. I pay my mortgage - but I'll need an income to keep paying it.
2. I am retired - but I'll need a solvent Mortgage industry for my retirement company (who invested heavily in the mortgage industry).
3. I eat - the mortgage industry helps finance places that make food - take away the mortgage industry, take away the food
4. I breath - if the mortgage industry goes belly up, the greening of America will stop and we will drown in Red Chinese 'mist' (what they call 'smog').
5. my family drinks water - if the mortgage industry goes belly up, the world's water will get messy
6. I pay taxes - if the mortgage industry goes south, the whole economy will go south - taxes will shoot up above 100%
It is my Mortgage crisis.
BTW, this week-end the President is working with Congress to increase the Debt of the USGovernment by 6% (to 'solve' the mortgage crises). This will cause massive (6%+) inflation. Now my family of 4 will owe $25,000 more than last week. I would have rather bought a mini-SUV with a lift so I can continue to go get groceries.
1. I pay my mortgage - but I'll need an income to keep paying it.
2. I am retired - but I'll need a solvent Mortgage industry for my retirement company (who invested heavily in the mortgage industry).
3. I eat - the mortgage industry helps finance places that make food - take away the mortgage industry, take away the food
4. I breath - if the mortgage industry goes belly up, the greening of America will stop and we will drown in Red Chinese 'mist' (what they call 'smog').
5. my family drinks water - if the mortgage industry goes belly up, the world's water will get messy
6. I pay taxes - if the mortgage industry goes south, the whole economy will go south - taxes will shoot up above 100%
It is my Mortgage crisis.
BTW, this week-end the President is working with Congress to increase the Debt of the USGovernment by 6% (to 'solve' the mortgage crises). This will cause massive (6%+) inflation. Now my family of 4 will owe $25,000 more than last week. I would have rather bought a mini-SUV with a lift so I can continue to go get groceries.
JustChristian
New Member
It's true that the Clinton presidency wanted to offer more opportunity for home ownership to those who have been denied the American dream. But by far the majority of non-performing loans occured during Bush's watch. HUD was supposed to provide oversight of FM/FM. They have failed in that responsibility under Bush's watch.
Whose responsibility is this crisis? Like many other's the resposibility mainly lies with president Bush.
Whose responsibility is this crisis? Like many other's the resposibility mainly lies with president Bush.
BaptistBeliever said:
And, the foreclosure problem is not limited to the low income neighborhoods, there are plenty of upper income executives that lost their jobs and are also in a financial crunch.
Ed Edwards you have hit the nail on the head, with the chain effect this crises will cause, we all own this problem. :thumbs: