I’ve asked the mods to change the title, as I got ahead of myself. It’s “Let’s Be Honest: The Real Problem With Our Financial System Is The American Dream”
Apologies to the forum
She tossed in Fannie Mae and Freddie Mac, the two “G.S.E.’s” (government-sponsored entities) whose role as a guarantor and securitizer of mortgages greatly expanded the ability of mortgage originators to make loans to home buyers — and which are now, of course, in federal conservatorship, with taxpayers holding the bag for their gargantuan losses.
She also pointed out that during the bubble, when anyone with a pulse could get a mortgage, the percentage of Americans owning homes rose to an unprecedented 69 percent, a number that was greeted with bipartisan hurrahs, but which turned out to be “unsustainable,” Ms. Bair said.
She concluded: “Sustainable homeownership is a worthy national goal. But it should not be pursued to excess when there are other, equally worthy solutions that help meet the needs of people for whom homeownership may not be the right answer.” Like, you know, renting.
But, but, but the Obamunists promised us a workers’ paradise. I had no idea their idea of hope and change was for all of us to live in caves, burn wood for light and heat, eat bugs and weeds for food, use tree sap and dried flower for medicine, and bow to the great Chief for all of our guidance.
The problem is that the American Dream has been subverted
by a Socialist nightmare, and don’t think for a minute
that it happened by accident.
The American people need to wakeup before it’s too late,
remember who is responsible, and as our illustrious
maximum leader says, “know whose ass to kick”.
There’s nothing wrong with the American ideal of home ownership. What’s wrong is the American ideal of working hard to earn it was scrapped.
Government forced banks to loan to millions of people that should never have been allowed to buy a home!!
The American Dream isn’t the problem.
The willingness to earn it without demanding someone else pay the bill is.
Ms. Bair is of course incorrect. At this point, the one and only thing that will truly help the Mortgage industry get on a “sounder footing” is to force mark to market values, and let those whose books are truly full of holes use bankruptcy procedures, and clear the deadwood. That will be a start. Another great thing would be a move to again set a fixed amount for down payment, say 20 or 30%, as a condition of the mortgage. I’m admittedly an idiot about finances, although I am learning, thanks wholly to Karl Denninger. It’s nothing grandiose. Just have the banks and mortgage companies express exactly what their paper’s worth. If there’s fallout, accept it. Beats the heck out of the current house of cards.
You’re right.
America is just too big a place for big dreams.
/sarc
Let’s Be REALLY Honest: The Real Problem With Our Financial System Is an Un-American President and his little helpers in Congress.
Correction: Anti-American President