It seems that as the sub-prime fiasco unfolds Bush's dream of an 'Ownership Society' is imploding in his face. Discuss.
What is this discussion about, sub-prime problems, ownership society, how one can blame Bush for all the problem in world, or how socialism will fix all of mankind's problems?
Perhaps President Obama can give poor people the dignity they desire by holing them up in delapidated public housing projects like every other Democrat has done.
Now we are finding out the true premium cost of the 'Greenspan Put'. In Beverly Hills our office building went almost 100% to loan brokers. People right out of school were selling money, a group of rabbis were cold calling Mexicans immigrants in East Los Angeles on taking out 2.5 point mortages to buy homes, six months later calling them to refinance, and again another six months later. 2.5% every time. Again in Beverly Hills there were something like 100 Persian- Jewish owned mortgage broker companies formed within a 4 square block in Beverly Hills. In Glendale, there were hundreds of Armenian loan brokers doing the same thing to the immigrant community. In Monetery Park, there were thousands of Chinese and Korean brokers slamming loans as well. In east Los Angeles, hundreds of Mexicans were slamming loans as well. Again in our building one of these 'operators' was getting his leads from a loan officer from Washington Mutual whose was receiving kickbacks, the appraisers were recieving $500 to provide the necessary value to be able to sell the loan to the funding companies, notaries in the office were signing off on forged signatures. It was a crime all around. The non-monetary costs are hard to quantify...tearing down 1920-30s spanish style bungalows build in Hollywood's Golden Era to build Mc Mansions that looked like a cross between a itallian villa-new orleans whore house..with greek columns and cape cod shutters. Personally I am glad it imploded.
and our own "oldtraitor" still thinks we are in a housing boom. im surprised pabst is admitting this debacle.
It was a shameful waste. Money lenders have been a scourge of the poor and middle class for thousands of years. Good Times. Any time you meet a payment. Good Times. Any time you need a friend. Good Times. Any time you're out from under. Not getting hastled, not getting hustled. Keepin' your head above water, Making a wave when you can. Temporary lay offs. Good Times. Easy credit rip offs. Good Times. Scratchin' and surviving. Good Times. Hangin in a chow line Good Times. Ain't we lucky we got 'em Good Times.
Can't fault the man for trying. I thought it was a great idea. People with vested interests in neighborhoods. I'm sure some people made it work, Overall I suppose Bush underestimated Joe Nobody's financial IQ. It may have worked if the refi people didn't call these same borrows back in a year, selling a dream with a cash/check of the appreciation equity. Too bad what used to be a 2nd mortgage disappeared, everything was a first refi. No banks would have done a 2nd mort on appreciation, this might have saved a lot of grief. Sad part is, now what? Esp, since the bk laws were changed, almost seems as if it was a master plan. The credit co/banks pushed for stronger bk laws then shafted the borrowers with a numbers game. One young couple I know bought a 2 family, first home. Worked out quite well, till they bought the sideshow that cashing out the equity they could buy a new car and have a spectacular Christmas, yada yada. I couldn't tell them anything. Two refi's later they ended up selling and now live on rent. Hence, my example of the financial IQ of young kids these days.