Are we missing the outrage for being sold down the river by a ship steered by fools in the mortgage crisis? Even our choice for presidential candidates show heavily embedded lobby and financial interests for a Marxist socialist solution or a watered down free market solution. Both are sleepwalking in lobby money and favoritism.
Selling an expensive assets such as a homes to those who are unprepared financially to deal with making mortgage payments, insurances and property taxes is foolish. But that is exactly what president Jimmy Carter did by passing legislation encouraging such loans. This started the disconnect between reason and reality and utter foolishness. Political meddling into economic issues and sound lending practices kills the golden goose every time.
President Bill Clinton put this bogus practice on steroids. He enacted legislation that punished mortgage lenders that would not comply. He deregulated risk by legislating against it causing a complete abandonment of sound lending practices.
Who bought these counterfeit high risk loans? Fannie Mae and Freddy Mac. They, furthermore, became a source for sending political contributions to politicians encouraging this bad credit homeownership cancer to keep growing. Mortgage company lobbies' threw hundreds of millions of dollars to politicians' greed in order to perpetuate this circus even as residents of high-foreclosure neighborhoods suffered additional pain from high property taxes.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This spectacurlary increased their risk as well as greatly increased their short term profits.
This fraud was given the stamp of approval by chief economists Greenspan and Bernanke and the ship of fool's balloon took off. Socialist organizations such as Acorn (Association of Community Organizations for Reform Now) and other related groups pressured banks into giving even more misguided loans.
Banking Committee Chairman, The House Finance Chief, SEC Chairman and other top-ranking government officials allowed this cancer to perpetuate because of the lobby money they received. The greed for lobby money twisted sound reasoning and perpetuated complete nonsensical thinking. The only solution for not tempting elected officials to sway their votes from socially responsible to sociopathic dimensions is to banish those accepting lobby money from government service as well as requiring jail time.
When the hot air balloon runs out of fuel used to create the hot air, the balloon crashes. When the easy credit real estate market turned and foreclosures skyrocketed, the balloon was punctured and stopped climbing; it crashed. Humpty Dumpty and the 700 billion dollar bailout that was weighed down with pork project bought and paid for by additional lobby money show how corrupt these weasels are. Where is the ethical outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower real estate assessment values. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should investigate whether you have a case. - 16492
Selling an expensive assets such as a homes to those who are unprepared financially to deal with making mortgage payments, insurances and property taxes is foolish. But that is exactly what president Jimmy Carter did by passing legislation encouraging such loans. This started the disconnect between reason and reality and utter foolishness. Political meddling into economic issues and sound lending practices kills the golden goose every time.
President Bill Clinton put this bogus practice on steroids. He enacted legislation that punished mortgage lenders that would not comply. He deregulated risk by legislating against it causing a complete abandonment of sound lending practices.
Who bought these counterfeit high risk loans? Fannie Mae and Freddy Mac. They, furthermore, became a source for sending political contributions to politicians encouraging this bad credit homeownership cancer to keep growing. Mortgage company lobbies' threw hundreds of millions of dollars to politicians' greed in order to perpetuate this circus even as residents of high-foreclosure neighborhoods suffered additional pain from high property taxes.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This spectacurlary increased their risk as well as greatly increased their short term profits.
This fraud was given the stamp of approval by chief economists Greenspan and Bernanke and the ship of fool's balloon took off. Socialist organizations such as Acorn (Association of Community Organizations for Reform Now) and other related groups pressured banks into giving even more misguided loans.
Banking Committee Chairman, The House Finance Chief, SEC Chairman and other top-ranking government officials allowed this cancer to perpetuate because of the lobby money they received. The greed for lobby money twisted sound reasoning and perpetuated complete nonsensical thinking. The only solution for not tempting elected officials to sway their votes from socially responsible to sociopathic dimensions is to banish those accepting lobby money from government service as well as requiring jail time.
When the hot air balloon runs out of fuel used to create the hot air, the balloon crashes. When the easy credit real estate market turned and foreclosures skyrocketed, the balloon was punctured and stopped climbing; it crashed. Humpty Dumpty and the 700 billion dollar bailout that was weighed down with pork project bought and paid for by additional lobby money show how corrupt these weasels are. Where is the ethical outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower real estate assessment values. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should investigate whether you have a case. - 16492
About the Author:
Before you pay your property taxes, look at a property tax abatement guidebook that could lower the amount you pay in property taxes. Property tax records have a high chance of error and a property tax appeal can lower your property taxes for years.
