Posted on 02/04/2011 7:33:28 AM PST by SeekAndFind
I agree. Foreclosures are just a symptom; unhealthy banks and back room political relationships are the actual disease. Time to amputate both of them.
Who has done more damage to America in the first decade of the twenty first century??
(1) Al Qaeda
(2) The investment banking industry
How in the hell do they get bailed out AND STILL OWN THE MORTGAGES AT FULL VALUE????????
GUILLOTINE ! ! ! ! ! !
(2) The investment banking industry
We need to keep a keen eye on both sides of the imaginary aisle. A crook is a crook whether he's wearing a donkey costume or an elephant costume.
Inject all the money that was stolen by the Wall Street deadbeat beggars, their puppets in D.C., the GSEs, O.C.C, S.E.C, etc. back into the economy.
Where running a lot of deficits...the biggest might be in govt. credibility.
“One has to wonder what will happen to the second mortgages on these foreclosures.”
Toast. The second gets nothing. When in short sale the second usually gets $500-$1,500, but they are usually happy to get that knowing they’ll get nothing once the property forecloses.
The way things are set up, the banks get MORE MONEY on the foreclosures, therefore, negotiating with the homeowner is a no go. No incentive for them to do that. NONE.
“Why is it that in earlier decades we didnt have all this mass conundrum with mortgage foreclosures and sky high real estate prices? The artificially overpriced homes plus the big taxes to maintain them are putting a kabosh on the economy for so many.”
The cause of the overpriced homes is the sad but simple truth of “free money.” The interest rates were so LOW that it created the equivalent of free money that people used to bid up prices on homes. Most lay this at the feet of Alan Greenspan. It is a part of this puzzle, but not all of it. The other part was that banks were making easy huge bonuses on selling these mortgages as securities, CDS. So, because the banks were REselling these mortgages, what did they care that the loans were bogus pits of lies?? None. This allowed the whole housing boom with the adds on furniture, and remodels, etc to grow and make America look like she was doing well, when she was really rather sick. The cure is killing the patient.
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