Monday, August 9, 2010

Wake Up People!

People just don’t get it!

A recent Rasmussen Poll shows that 58% of American consumers are against an Obama administration plan for partial mortgage forgiveness.

Their reasoning, which really escapes me, is that it will be unfair for those who are making their payments on time!

As Dorothy in the Wizard of Oz once said, “Toto, we’re not in Kansas anymore.”

People are way and afar upside down in their mortgages because banks like Countrywide scammed them into taking out loans that bank executives and their colleagues knew were for more than the properties were worth.

Appraisers were even in on the scams. They were paid by the banks to overvalue these properties, and why? Because the banks were making points based on the amounts of the loans they made.

Now, for the first time during the Obama administration, the President comes up with an idea that will really help the economy and the American people, in their insatiable need to profess ignorance, don’t get it.

Even the homeowners it would help don’t get it. It makes me wonder if perhaps the fluoride in America’s drinking water has really destroyed too many brain cells and America simply can’t think.

It was the banks that brought the mortgage value to its current low level, not the homeowners. You cannot continue to foreclose at the level the banks were without dropping the entire market. In Las Vegas alone, there were, at one point, 80,000 foreclosures pending and more than 1,000 occurring daily.

To add to the picture, the subprime loans made to prime borrowers had payments that reset higher -- in some cases, the mortgage payment actually doubled. Is this the borrowers fault? I think not, as evidenced by recent litigation proving that bank fraud was overwhelmingly evident with ALL banks. Yet, the government bailed out the financial institutions and consumers applauded. But now that Obama finally appears to have taken an interest in saving borrowers along with the economy, America can’t see the forest for the trees.

Please explain to me why the majority of Americans simply don’t understand that the massively high foreclosure rate has destroyed not only the mortgage values in the surrounding areas of these homes but the economy itself. How does it benefit society to have more than 4% of U.S. homes sitting vacant while families are forced to live in tent cities?

One of the major obstacles to sustained job growth is the lack of a semblance of stability in the economy. Keeping people in their homes would be a good beginning.

Foreclosures have dragged the economy to its current low. The subprime interest rate, with its variable teaser – which, by the way, was given to prime borrowers -- has drained society of money that could have sustained the economy without us ever having had to get into this crisis. This financial crisis has been based on greed, and we, the unassuming public, have been the pawns of an elite financial society that feeds on us.

Come on America. Wake up, the roses are dying!

As an interesting side note, I took a poll in an office with 32 employees and all were in favor of the President’s plan!