Frank Louis
Still no solution on economic or housing crisis: here is my suggestion and this idea will work
By Frank Louis
I am still digesting the President's speech. But it sounded like spending more of the money we no longer have because we are now slaves to our valueless real estate. So...
This week on CNBC, I happened to hear my favorite water carrier who "reports it like she is told it" as far as I can tell, Diana Olick "reporting" on some "new" (but stupidest yet) idea to solve the housing crisis... A massive "refinance!" Yes, you read this correctly. She was not clear on the parameters of this latest from our Treasury Secretary and President, but it was something about everyone being able to refinance at today's low rates. Based on what Diane? More no doc no income stuff for those who never invested a cent of their own money and caused this crisis? Please, someone turn my TV off!
Then Jim Cramer (someone whom I used to believe had a clue... and I think still may but knows who butters his bread too... he does work for the tax exempt Bank of GE), on one of the CNBC morning shows was tossing around thoughts on "re-stress testing" the banks, talking about the Fannie Mae lawsuits, mortgage put backs and all of the stuff I have often covered in previous articles. In particular, the topic was the NHFA lawsuits against the banks regarding mortgage backed securities fraud (something that will be the subject of my next article I believe). Someone asked the question: "How are banks supposed to pay out?" Jim replied "Look, I feel bad for anybody who lost their job, who is in a home, and doesn't want to pay their mortgage..."
Jim, that's right neighborly of you! A big "shout-out" to ya' too!
But Jim the taxpayers and people who were fooled by the banks regarding the comparable values of real estate during the early 2000's have lost their viability in this capitalistic economy. Their wealth has been stolen and it is their money the government is now using!
And Jim, still no mention from any of you in the media, the political arena or financial industry (yet... or ever) about people/families who had saved hundreds of thousands of dollars and actually made down payments, filled out actual "real" mortgage applications and, (here's the best part)... qualified with good credit scores and 20 or 30% down (the money I just mentioned they had saved, sometimes over generations). People were often buying those nasty "investment properties" or second homes to leave for their grandchildren and using their life's savings to do so.
No, you follow your previous comment regarding people who have lost their jobs due to this economic fraud with: "Its hard to build capital when you've got to return it to people who didn't pay their mortgages." Jim, this is all our tax money! Its OUR MONEY they are passing around and that you folks are all getting commissions on every time it changes hands. Our Money!
Here is the solution: First, get the people who make money from this fraud out of the loop. Then, how about just providing cash refunds for people who made down payments on property they purchased at falsified values based on fraudulent comparable values (comps) that were fraudulently created by the industry to sell mortgage backed securities? Jim, they used our money to do this! Give us all our money back. Yes, that should be the dividing line in these programs, if there was money invested or not — nothing else.
People who made down payments did not cause this crisis. The crisis was created by a system that demanded more and more mortgages (no matter how they were created) to make more and more mortgage backed securities for the derivatives market. You know, the well-documented fraud by the professionals who caused all of this to happen by writing bad loans, inflating values with new sales? And while we are at it, the "professionals" who made these fraudulent "no money down, no doc" real estate deals and loans, need to return their commissions, their sales fell through! And, in some instances, perhaps they need to do some time.
People who did not make a down payment, took out these no income no doc no anything loans, have nothing invested, so they have not / are not loosing anything. Frankly, I am sick and tired of hearing bout this person or that person who just wanted their "American Dream" but did not invest anything into getting it with some politician or member of the Fed standing there with them. Very tired! Stand with people who made down payments!
Tell me, why there are all of the programs not designed to assist people who actually lost money? Can you answer this for me? Never have I heard of any program where the qualifying factor was that the person actually played by the rules. Can you suggest this concept for me or, at least tell us why it is a bad idea? It sounds easy enough to me.
Here is how it would work: The President just announces that everyone who bought property (say between 2005 and 2007) and is underwater or has been foreclosed on because the property is now worthless just bring their closing documents on down and they will get their money back, the loan voided, (the government can own the property as they are already doing) and the economy is fixed! These people deserve their good credit back, and... Guess what? The economy will turn around that afternoon.
Yup, just give us the estimated $6 trillion in net worth that was stolen from us through this housing crisis (estimated at over $100,000 per property) and see just how fast the economy picks up. Stop giving our money to the very financial institutions that stole our personal worth in the first place. And, oh yeah, one last thing, move all of these PhD theorists who created this crisis in the first place over to the video game design branch. That is where they can do the best work for the country.
© Frank Louis
September 10, 2011
I am still digesting the President's speech. But it sounded like spending more of the money we no longer have because we are now slaves to our valueless real estate. So...
This week on CNBC, I happened to hear my favorite water carrier who "reports it like she is told it" as far as I can tell, Diana Olick "reporting" on some "new" (but stupidest yet) idea to solve the housing crisis... A massive "refinance!" Yes, you read this correctly. She was not clear on the parameters of this latest from our Treasury Secretary and President, but it was something about everyone being able to refinance at today's low rates. Based on what Diane? More no doc no income stuff for those who never invested a cent of their own money and caused this crisis? Please, someone turn my TV off!
Then Jim Cramer (someone whom I used to believe had a clue... and I think still may but knows who butters his bread too... he does work for the tax exempt Bank of GE), on one of the CNBC morning shows was tossing around thoughts on "re-stress testing" the banks, talking about the Fannie Mae lawsuits, mortgage put backs and all of the stuff I have often covered in previous articles. In particular, the topic was the NHFA lawsuits against the banks regarding mortgage backed securities fraud (something that will be the subject of my next article I believe). Someone asked the question: "How are banks supposed to pay out?" Jim replied "Look, I feel bad for anybody who lost their job, who is in a home, and doesn't want to pay their mortgage..."
Jim, that's right neighborly of you! A big "shout-out" to ya' too!
But Jim the taxpayers and people who were fooled by the banks regarding the comparable values of real estate during the early 2000's have lost their viability in this capitalistic economy. Their wealth has been stolen and it is their money the government is now using!
And Jim, still no mention from any of you in the media, the political arena or financial industry (yet... or ever) about people/families who had saved hundreds of thousands of dollars and actually made down payments, filled out actual "real" mortgage applications and, (here's the best part)... qualified with good credit scores and 20 or 30% down (the money I just mentioned they had saved, sometimes over generations). People were often buying those nasty "investment properties" or second homes to leave for their grandchildren and using their life's savings to do so.
No, you follow your previous comment regarding people who have lost their jobs due to this economic fraud with: "Its hard to build capital when you've got to return it to people who didn't pay their mortgages." Jim, this is all our tax money! Its OUR MONEY they are passing around and that you folks are all getting commissions on every time it changes hands. Our Money!
Here is the solution: First, get the people who make money from this fraud out of the loop. Then, how about just providing cash refunds for people who made down payments on property they purchased at falsified values based on fraudulent comparable values (comps) that were fraudulently created by the industry to sell mortgage backed securities? Jim, they used our money to do this! Give us all our money back. Yes, that should be the dividing line in these programs, if there was money invested or not — nothing else.
People who made down payments did not cause this crisis. The crisis was created by a system that demanded more and more mortgages (no matter how they were created) to make more and more mortgage backed securities for the derivatives market. You know, the well-documented fraud by the professionals who caused all of this to happen by writing bad loans, inflating values with new sales? And while we are at it, the "professionals" who made these fraudulent "no money down, no doc" real estate deals and loans, need to return their commissions, their sales fell through! And, in some instances, perhaps they need to do some time.
People who did not make a down payment, took out these no income no doc no anything loans, have nothing invested, so they have not / are not loosing anything. Frankly, I am sick and tired of hearing bout this person or that person who just wanted their "American Dream" but did not invest anything into getting it with some politician or member of the Fed standing there with them. Very tired! Stand with people who made down payments!
Tell me, why there are all of the programs not designed to assist people who actually lost money? Can you answer this for me? Never have I heard of any program where the qualifying factor was that the person actually played by the rules. Can you suggest this concept for me or, at least tell us why it is a bad idea? It sounds easy enough to me.
Here is how it would work: The President just announces that everyone who bought property (say between 2005 and 2007) and is underwater or has been foreclosed on because the property is now worthless just bring their closing documents on down and they will get their money back, the loan voided, (the government can own the property as they are already doing) and the economy is fixed! These people deserve their good credit back, and... Guess what? The economy will turn around that afternoon.
Yup, just give us the estimated $6 trillion in net worth that was stolen from us through this housing crisis (estimated at over $100,000 per property) and see just how fast the economy picks up. Stop giving our money to the very financial institutions that stole our personal worth in the first place. And, oh yeah, one last thing, move all of these PhD theorists who created this crisis in the first place over to the video game design branch. That is where they can do the best work for the country.
© Frank Louis
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