Posted on 10/07/2009 6:45:59 PM PDT by machogirl
In the Medieval era -- when the periodic table of the elements was comprised of only Fire, Earth, Air, and Water -- alchemists posited the existence of a fifth magical substance, Quintessence, which when mixed in combinations of the other four would create every other form of matter. They searched in vain for this ethereal substance in their pursuit of a means of changing base metals into gold.
Their quest went unrealized, but this magical quintessence was subsequently discovered five centuries later by the new alchemists: mortgage bankers and investors. They found a way to turn worthless mortgages into hordes of gold. Or at least they thought they had.
There were other factors that contributed to the collapse of the credit markets. Low interest rates by the Federal Reserve, lowered standards by FannieMae and FreddyMac, securitized mortgages (derivatives and collateralized debt obligations -- a real alchemic brew), the machinations of Barney Frank and Chris Dodd, the Community Reinvestment Act, Alan Greenspan, and so forth. etc. But of themselves, and even in concert, they could not have brought about a collapse of the magnitude that ensued.
So what supplied this quintessential element? It was the opportunity to exploit the sudden and coincidental housing needs of millions of illegal aliens with subprime mortgages. The grand schemes and diabolical financial instruments would otherwise lie fallow without a huge base of mortgages to hold up the Ponzi pyramid, and the new market of the 12 -- more likely 20 -- million housing-starved illegal alien populace was the ripe, low hanging fruit.
(Excerpt) Read more at humanevents.com ...
bi.. bu.. but Bawney Fwank says it’s not true. < / sarc
Although illegal alien loans may be a big problem, I believe loans to people who could NOT pay (i.e. other groups) also contributed!
JD Hayworth was doing a really good impression of Barney a few minutes ago. JD could have a career in stand-up comedy if he wanted to. He does a mean Charlie Rangel too.
Absolutely true. And those people weren’t able to figure out that they couldn’t afford it either.
Some neighborhoods in the outlying areas of Phx are devastated by foreclosures and short sales. Somebodies, lots of bodies made mucho dinero off of this false rise in property valuation and sales.
It wouldn’t surprise me if the drug cartels and human smugglers got into this enterprise also.
bump to the top
One of the things I will never forget about this Obamess is something that I heard last fall, when everything started going to hell to set Bammie up for his BIG win. I heard a story on FNC about a woman in Detroit who had mortgages on eight properties (that’s one more than John McCain) that she wasn’t making payments on. The story went on to say that she ran home to Mississippi to get out of the mess she was in. It wasn’t long after that when all hell broke loose.
I have this feeling she wasn’t alone. I heard stories here in Phx of people doing that. Getting the mortgages all on the same day, fake financial income, then trying to flip them quickly to make money without any investment and by FRAUD.
Let’s see.......... Illegals somehow got mortgages with no problems, but we’re to believe they won’t be able to get public option healthcare?
I think that was what they were implying with this story. She was up to no good. Or renting out the properties and not making her mortgage payments.
That is a good point and I believe it.
good reasoning. we’re screwed.
sounds like a prime ACORN candidate.
“We’ve heard this before and I believe it to be TRUE”
“Believe” it to be true? It HAS to be true!
Millions of illegal invaders who HAD to live SOMEWHERE and whom we allowed into finance and banking transactions and home buying, WITHOUT troubling ourselve to find out WHO they were. Lets just say that they HAD to be a market force and factor unto themselves.
LOL! I wouldn’t be surprised to find that she already is in with ACORN.
I believe loans to people who can’t pay was the entirety of the problem. Overexuberant loans to illegal aliens was part of the problem. What people don’t understand about immigrants is their view of money. In America, if you don’t have money, put it on a card, borrow against their equity etc. When you live in the third world if you don’t have cash, you get skinny fast.
The problem arose because for decades the value of real estate went up so predictably if you lost your job you could sell your house and be OK. When the values dropped when the bubbled popped, thats when the forclosures crushed the market.
I wonder?
mmmmm, mmmmm, mmmm
Maybe ACORN organizer?
you are correct. it is TRUE. one family in my neighborhood overpaid by at least 100k on a house. the house is now in foreclosure and i’m not sure if they went back to mexico or on to another state.
Incidently, I was in that category. I bought a house for less than I was paying for rent and paid exactly $154 down. That was the bug inspection. Financed the rest. 4 years later I went from high 5 figure money to 0 income for a few months. got up to 3 months back on my mortgage, sold everything I owned on craigslist and moved to VA to get a job. I sold my garden hose, my birdfeeder in the back yard, all but one extension cord, every piece of furniture I own, just cleared the place. Had tenents tear the crap out of my house and drive up repairs. I ate bulk frozen hamburger and ramen noodles for a long time, but I succeeded in my job and still have the house. Didn’t take a giant, overfunded government program, I sacrificed and protected myself. That is basic American resourcefulness, but I fear that the current administration does not trust that to drive an economy.
See my tagline.
Don’t tell anyone we “KNOW”.
okey dokey, lips are sealed. ;)
He finally got a good buyer and went on with his life, but it got me to thinking. How many of us have checked our Credit reports and found we have a repo house in El Paso will bill collectors looking for us? Tancredo said he KNEW of 250,000 in Colorado when he was running for president. Just think how many there might be in Texas, New Mexico, and Arizona?
A whole hell of a lot.
Coaching wasn't necessary. The only requirement was being able to fog a mirror. I suspect that requirement was dropped in many instances /s
It does not matter! Rinos need the Hispanic criminal vote!/s/
Not a bad article, although I wish it had notes to research the validity of his points.
good point. i thought about checking those sites here in phx if i get time.
this is one of the hot spots.
stupid rhino’s won’t even get it. mccain was mr. shamnesty and i believe that he did worse than bush did in “hispanic vote pandering”.
border bump
Yep, you got it.
BTT
“It wouldn’t surprise me if the drug cartels and human smugglers got into this enterprise also.”
Not to mention funding the likes of LARaza (as taxpayers also do!) and corrupting TOO many of our politicians and ‘public servants’...MONEY TALKS
BTT!
i’ll bet there’s a whole story in that, which the “investigative journalists” in this town and across America don’t want to look at.
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