We’re all to blame

No! I’m to blame! Can I have a trillion bucks and run the country now?

There was that but I know too many highly qualified home buyers who got sucked into balloon mortagages not because it was cheaper but because they were lied to. In more than one case I know of they were presented with a ‘revised’ explanation of the mortgage they thought was to be fixed at the moment of signing.

There was a ponzi scheme in Michigan home financing where mortgage brokers wrote loans that needed to be re financed every two years to keep the profits flowing to the brokers

The sub prime loans have a 39 precent default but that was not the majority of the housing market.

What I saw in this era was
1. a huge debt snowball caused by 911 recovery and anti terrorist programs
2. revision in banking tules
- that forced homes to be sold during bankrupcies helping to depress home prices
- that allowed huge minimum payments on credit cards and a blitz of penalties including raising interest on current balances to 29 percent for a single late payment
- that allowed gambling on financial papers facilitating the unbelievable hedge fund pyramid schemes
3. A huge trade deficit with China, 2 trillion dollars no longer floating in our banking system but sitting in China. Those dollars could not be circulated into jobs in the US, as the Chinese well knew
4. Illegal alien welfare states like California living on borrowed funds as the productive sector shrunk due to credit card collapse cutting purchases, causing job loss from consumption drop, causing increased burden on the states as tax revenues fell behind spending
5. The shinking job market caused by the end of credit liquidity caused by all of the above
6. the coup de gras (and intentional I believe) was the jacking up of oil prices by the cartels

Sub crime foreclosures were the canary in the coal mine, the first victim of a toxic debt spiral related to

#1 – Chinese trade imbalance 2 trillion
#2 – Excess Government spending versus tax revenue caused by
#3 – 911 cost 1 trillion(?)
#4 – labor class replacement workers from Mexico allowed to flood the job sector by the Bush administration, increasing profits yet reducing income tax revenues and welfare burdens
#5 – Shrinking American production caused by 1 and 2
#6 – Crass banking rules allowing banks to hang people by the heels to get the last penny on the dollar

Banks raced to close subprimes and sell 100K homes for 1K which boosted their books for that month above the 700 dollars that would have come in a mortgage payment

Instead, we have an incompetent, corrupt, fecal matter encrusted pervert with the ability to do further damage to our economy.

Thanks a bunch, media! Your tireless cheerleading for the absolutely worthless scum in the Democrat Party will be your legacy and your doom.

rhodeymark on February 8, 2009 at 10:16 AM

You can thank the geniuses at Merrill Lynch for most of that. Yet that company was allowed to live and get taken over by Bank of America. About 3/4 of the people who worked at Merrill ought to be on Death Row right now, for first-degree murder of the U.S. economy.

No, but the Commodity Futures Modernization Act, signed by Clinton on his way out the door in 2000 did. And Republicans are more to blame than Democrats for that steaming turd. The “Enron loophole” took 8 years to close, and greatly contributed to the speculative oil bubble that choked us all. You guys can’t be blind partisans and expect to be taken seriously. The reason swaps are called swaps is semantic bullshit. If they were called what they are, insurance contracts against risky investments, they would have to have been regulated. The fact that common sense investors could see the lunacy of the subprime pools ratings, and could buy third party swaps against the lunacy led to the tens of trillions of dollars out there that have to be paid, losing hedge funds deleveraging, the big boys scrambling to unwind the mess, etc. They sold this crap to your underfunded and desperate pension funds! Get ready for our demographic S to H the F.
It wasn’t just the stupid mortgages that the Dems enabled, and Bush adopted as part of his Ownership Society in ’02, it was Congress allowing Wall St. to treat these go-go mortgages as bets taken by a crooked croupier.

Or are they all doing DRUGS
Or does EVERY member of congress
Actually WORK
for the communist party?

Because everything i have seen for the past 20 years
now points to a co-oberated effort to destroy the
United states of America

and believe me with pelozi ,franks shummer reid and the gag mesiah running things

I dont think the usa will survive for the next
3 months..

Only when Frank, Dodd, and the housing socialists get correctly discredited for their damage will we be able to breathe freely on housing again.

Only when the people can wee wee on their graves can this happen & none too soon.

BetseyRoss on February 7, 2009 at 3:35 PM

John McCain couldn’t use it in the campaign because he had a dozen former Fannie and Freddie lobbyists working for his campaign.

Of course, Tom Donilon can get an appointment as Deputy National Security Advisor, and nobody bats an eyelash. Donilon was Fannie’s chief lobbyist when all the dirty stuff went down under Frank Raines.

Uh no, actually we’re not. Some of us pay our mortgages and don’t do stupid shit like getting in over our heads. Many of us also oppose government intervention in private markets.

those two criminals should be lovies for some chicano gang bangers in a maximum security prison. only then will justice be served

My god! I never thought she would lie to the American people! She’s such an upstanding and honest civil servant! I’m shocked!

Next, I guess you’re going to tell me that Barney Frank is gay?

That’s the saddest part of the story …

PackerBronco on February 7, 2009 at 3:17 PM

I suppose this is pointing at all that followed the comma. I’ll admit it – I laughed.