MSNBC's Dylan Ratigan Urges Homeowners to Stop Paying Mortgages As a Leftist Protest By Tim Graham Sun, 06/27/2010 - 13:25 ET MSNBC afternoon host Dylan Ratigan took to the ramparts of The Huffington Post on Thursday and urged home owners to stop paying their mortgages as a leftist protest against a government too cozy with the bankers. The title was "They Keep Stealing -- Why Keep Paying?" The crisis was all Wall Street's fault, and now they're back to paying themselves bonuses after a federal bailout. So stop paying them. (Notice Ratigan doesn't suggest you protest Washington and TARP by refusing to pay your taxes.) This piece sounds like a direct-mail letter: You didn't cause this mess. They did. Now you are struggling to make the same payments on this mortgage on your now overpriced home even in light of a crashing economy and massive deflation, all while the government does everything in its power to help Wall St. keep the bonuses coming. Well, it is becoming time to take matters into your own hands... I suggest that you call your lender and tell them if they don't lower you mortgage by at least 20%, you are walking away. And if they don't agree, you need to consider walking away. Story Continues Below Ad ↓ It probably doesn't feel right to you. That is because you probably are a good person. But your mortgage is a business deal, and it is not immoral to walk away from a business deal unless you went in to the deal with the intention of defaulting. But somehow, even though the corporations are pumped to exercise their new rights, former bankers like Henry Paulson, current ones like Jamie Dimon and -- get this -- now even Fannie Mae execs want to keep you from exercising your rights. But before you let them (or anyone commenting below) force you into paying that $500k mortgage on a $300k house, ask them if they'll push Jerry Speyer into "honoring his obligation" by breaking into his $2 billion personal piggy-bank to keep paying for Stuyvesant Town? Or how about asking Hank and Jamie to lecture fellow bailed-out CEO John Mack about how "you're supposed to meet your obligations, not run from them"? Maybe make him use some of his $50+ million for those buildings he bought in San Francisco? And before shaming and punishing American homeowners, did they nag Steve Feinberg about helping "teach the American people...not to run away" by writing a check out of his billion-dollar pocket to cover all the stiffed landlords and vendors at Mervyn's? After all, at least you aren't single-handedly putting 1,100 employees out of work when you walk on your mortgage. As part of the deal for your house, your mortgage holder gets interest payments from you and they also use the note to your house for their capital reserves. In return, they take the risk of a foreclosure. In many states, you paid extra to have a non-recourse loan where the lender just gets the house back if you stop paying -- your interest rate would've been much lower if you were held personally liable like a student loan. But if you still feel bad, then donate the money saved to charity instead of to their bonuses. Even if you agreed that everyone on Wall Street is a knave and a thief, Ratigan is still preaching that two wrongs make a right. Or, to be more precise, the second wrong helps the populist agitators regain "our captured government" from the financial elite. (Did he clear that phrase with Chris Matthews, because it sounds "dangerously anti-government," doesn't it?) Meanwhile, our captured government has made it clear that they want to further reward these banksters because there are clearly better ways to "save" the economy without rewarding those most responsible for the damage. Instead of claw backs for the past theft and strong financial reform for the future, they choose to cover-up the gross misuse of our tax money, making our country worse by helping the criminals on the backs of the most honest. But thankfully, in this country we still have the tools to fight back and regain our country. Our vote, our voice, our laws and what we choose to do with every penny we have that doesn't go to taxes are the benefits of our hard-fought freedom, and in this battle we must use them all to fight back. It's time for the citizens to once again own this place.
I agree with him 100%. I don't think he's preaching that two wrongs make a right. What he's saying is that at some point the working people of this country need to stand up and give a big FUCK YOU to the system that keeps screwing them. The big boys skate free, then so do we. This is not a left/right issue. It's class warfare, and it's time for the working class to put up a fight instead of just bending over and taking it. I'd take his suggestion a step further. Not only should they refuse to pay, they should refuse to leave.
Have no idea who came up with the notion that this is a "leftist" protest (I guess those who strictly view the world in terms of left/right), but it looks to be more of a business decision that many homeowners are making. I know the banks are scared and are trying to frame this as immoral, but didn't seem to mind when... Tishman Speyer Properties walked away from 11,232 Manhattan apartments because it didn't want to pay its mortgage (even though it still had $33 Billion in assets). That's considered good business, or as it's called these days "Strategic Default". Vornado Realty Trust (VNO), the $13 billion real estate investment trust, said that it would walk away from two loans totaling $235 million. That's considered good business. Maguire Properties Inc. (MPG), a large office building owner in Southern California, handed over the keys to seven towers to creditors. They had the ability to support the debt, but choose not to. That's considered good business. Morgan Stanley is "giving back" five San Francisco office buildings to its lender -- just two years after buying them at the top of the market. That's considered good business.
Exactly, it's leftist if citizens walks away from his obligations, but if a corporation does the same is it considered rightist? There's a Utah congressman who says taxpayer's should clean up the BP mess. Unbelievable! The Party of the Dumb Supporters (PODS) have no idea who they're really supporting and don't understand how they're being taken advantage of.
All of those properties should have been classified as "commercial, non-recourse"... should have had 30-50% cash down payment. If they didn't, then somebody was reckless and greedy... bank lenders? Government?, or both. You SHOULD be able to walk away from a non-recourse financed property.... but not one which has a "full recourse" type of down payment loan.
bugscoe, Looks like this one is not gonna stick as a leftist/liberals/obama-fault thread, good luck with next one though
In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. > > > > His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, "passage of such a requirement would restrict home ownership to only those who can afford it." > > > >Perfect.