Posted on 09/20/2008 8:11:16 PM PDT by Lorianne
As the Wall Street meltdown continues, private-sector financial institutions have no choice but to swallow the market’s harsh verdict on the past decade’s financial engineering. Stunned global investors won’t give financial firms any more money, forcing the firms into bankruptcy if they’re not lucky, or into the arms of Uncle Sam or of much bigger companies, if they are. But as the House Financial Services Committee proved on Tuesday, the public sector somehow feels it can continue to ignore reality—at least for a little longer.
The committee, chaired by Massachusetts Rep. Barney Frank, took steps to gut a modest reform of the bad lending policies that helped get us into this mess. By voice vote, members moved to overturn a ban on something called “seller-financed down payments” for some government-guaranteed mortgages. Congress largely banned government support for such mortgages just two months ago at the request of the Federal Housing Administration.
(Excerpt) Read more at city-journal.org ...
This too will end in tears.
Con -gress. Biggest losers ever assembled.
One of the old tricks, buyer has no money, so seller loans it to him and then puts a second mortgage on the property minutes after the first is recorded. scam of the highest order.
Mine did. It also required that I affirm that the money used for the down payment was my own money free and clear.
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