Do you feel the “bad mortgages” is the real problem or something they are not telling us?

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This loaning to bad debt people started under Clinton and George let it ride. They have the statistics of the percentage of the home owners that will default on the loan. Like in the auto industry bad risk people let over 60% of the cars go back. Same way the insurance company operates on statistics.

So a person moves into a home, has a mortgage, water bill, Electric, phone and then also property taxes, which are not small. before these folks might have had to worry about electric or apartment rent or phone bill.

So my point is they have the statistics for over 10-11 or more years and all these people just didn’t “punt” on their homes, it been going on since it started and it’s a certain amount. So is there something else other than the bad debt smoke and mirrors they are throwing at us.

There should be a site that has the actual numbers that default and the amount. I wonder if like Madoff, Stanford and others if there is a bigger problem they don’t want to address that involves $ 70 trillion in loans between the financial people. This housing thing is not new.

What do you think it could be.

  1. Reply
    May 2, 2011 at 12:19 am

    its the us gov. there’s always something they’re not telling us.

  2. Reply
    May 2, 2011 at 12:42 am

    the government is ALWAYS hiding something

  3. Reply
    May 2, 2011 at 1:05 am

    only good honest people that had a job and then now dont have one and have a house payment those are the ones that should be helped. not the ones that can’t make payments cause they are too big and oh my good ness defaulting. that is the stupid peroson so bit off more then he could chew and he knows who he is.

  4. Reply
    May 2, 2011 at 1:13 am

    It started with Carter, To many of the “insiders” made to much money for it to be found out about. They are still in power and will do anything to hide the rip off. You just elected the number one recipient of campaign donations from Fannie and Freddie, Obama.

  5. Reply
    May 2, 2011 at 2:08 am

    The federal reserve chairman is the one everyone should be looking at and blaming, he has more power then anyone, even the president.

  6. Reply
    Marvin the Martian
    May 2, 2011 at 2:31 am

    The something else is government meddling.

    Money is not an objective measure of value. It is a commodity like anything else, and responds to the laws of supply and demand just like any other commodity. However because the primary use for money is trade, it moves directly opposite of the rest of the market.

    As governments flooded the markets with money, money fell in value. This appeared in the form of rising prices, stocks, homes, commodities, all went up, relative to money. The problem is that real wealth didn’t go up, which meant wages didn’t go up. At some point this contradiction collapsed.

    Now the opposite is happening, the demand for money has risen, and as such prices fell. As the defaults hit, creditors either decided or were forced to curtail lending, which lowered the supply of money. The thing kind of fed on itself.

    We wasted a lot of wealth flipping houses and buying huge trucks because they have a hemi. This thing has to work its way through. But that is not going to happen in a nice orderly fashion.

    Instead we are going to watch intelligent and well educated people demonstrate that intelligence and education is no guarantor against doing exceedingly stupid things.

  7. Reply
    May 2, 2011 at 2:56 am

    Its not just bad mortgages or bad lending on behalf of the banks and business’s as we are beeing led to believe. Greed has undouptedly been the motivation behind the actions leading to this recession. There is almost no end to the things about our current situation that are sooo wrong. First of all, the first bailout was passed without the public knowledge untill after the fact, then again and again we continue to “bail-out” these greedy ungratefull fat cats because our trusted senators and members of congress have their own stinking interests at heart, most of them have been in their seats for so long they have forgotten who the little guys actually are. Joe the plumber makes me sick, how dare he complain that he may pay more taxes for makeing 250k a year! screw you Joe! I make 35k a year for a family of four and nobody gives a crap about me. The American people are no longer beeing governed by the people for the people, the fate of our country has now been sealed behind our backs by lobbyists and Monopolies. Thats exactly why very few, if anybody, is beeing held accountable for their part in the fall of our economy. To cut myself short so I don’t rant forever, it is a pattern of negligent borrowing, spending, and the people beeing duped by their government for the last 50 years or so. My solution idea; replace every congressman/woman and set a 4 year 2 term limit on their time in their seat, also set 500k limit on their yearly earnings. Then outlaw lobbying for government backing. Punish ALL those who borrow and/or lend negligently be they civilian or government personel. Excuse the spelling errors.

  8. Reply
    May 2, 2011 at 3:28 am

    It’s just my opinion, but I think that the desire to ‘hyper-consume’ along with a cocky attitude is causing this recession. People don’t want to do without in this country. People don’t want to have ‘classes’ and they use credit to make themselves feel like they are several income levels above their actual income. People don’t save for retirement, college, or tragedy.

    An example of this is a doctor that I was acquainted with once who, because of his specialty, made $ 300,000.00 a year; yet he lived paycheck to paycheck. He said that he and his wife would decide on a Thursday to fly to the Bahamas for the weekend with the whole family, and spent thousands a month on nannies, housekeepers etc. When he became a quadriplegic in a terrible car accident he and his wife were wiped out financially, had to sell their mansion, take their kids out of private school, move into an apartment, etc. The wife finally left him and he moved into a nursing home at 35 years old. Despite the fact that he made a lot of money, he was living like he made over a million a year – way beyond his means. He is just one example, but millions of Americans do the same thing.

    The housing crisis is not the root cause of the recession, just one of the most noteable. Of course, I won’t let these scam-artist, slimy lenders off the hook, but if the average person who fell for these scams really didn’t know any better, what happened to the old addage, “if it seems to good to be true it probably is”? The sad truth is that if you can’t afford it, then you can’t afford it, and people don’t want to admit this.

    While the housing boom was going on and people were buying houses and lifestyles they couldn’t afford with loans that were were a logical nightmare, they were spending on other things as well. Furniture, cars, stuff – mostly on credit. And businesses thrived. New strip malls and shops popped up everywhere and shop-keepers bought billions of dollars of inventory on credit and sold it to people that bought on credit.

    After the Great Depression, one of the saftey-nets put in place was that each bank had to keep in ‘reserve’ 3%-10% of the money deposited. This small percentage is so many billions of dollars across the country that it seems crazy that it would not cover any random amount that people would want to withdraw. The rest of the deposit is put into a huge pool that is lent out to borrowers to be invested. This is where your interest comes from.

    At the same time that the housing boom was going on and all the economic growth was happening and people were borrowing and spending at an unprecidented rate, other people, like bankers and CEO’s of large companies were taking advantage of the unregulated environment and skimming off the top (in many ways). ERON is just one example, and even today, after so many scum bags have been caught, there are still people being caught. Can you imagine how many people in positions of power are still out there ‘skimming’ your money, and standard of living? Don’t get me wrong, I am normally for deregulation and not much government interference, but because of this terrible situation we’ve gotten ourselves into I’m starting to question the sanity. These big businesses are so involved in the functionality and health of our economy and yet there doesn’t seem to be one filter in place to check credentials, honesty, credit scores, etc. Who hires these guys? Why isn’t there some type of check and balance system? It’s ridiculous (in my opinion).

    While we are buying all of this stuff on money we are borrowing, our own government is paying trillions on a war and borrowing from other countries to pay for it. Our citizen dollars are going to other countries to buy stuff, our government dollars are going to other countries to pay debt. So much of our money leaves this country.

    So now, there is so much debt, billions and billions of dollars of debt, and not much savings. There is the 3% to 10% in the bank, but pensions have been depleted (people don’t know this yet) and the reserve saftey net that people have been saying for decades could never fail is unraveling fast, but people don’t know this yet either, (well some do, but it’s kind of like Pearl Harbor or the Titanic – they are in denial).

    Now, suddenly, there is more than the average amount of people that can’t pay their bills. The businesses that were paying their bills with money that was really credit from their overconsuming customers, suddenly can’t pay the bills and the small amount of savings that this country was able to accumulate suddenly isn’t there and suddenly the 3% to 10% is not enough to cover the debt and banks are starting to go under and a terrible chain reaction has started that can’t be stopped.

    To make matters worse, we don’t make anything here anymore. We import just about everything. We have very little that we can sell to other countries. While our citizens are buying stuff th

  9. Reply
    May 2, 2011 at 3:32 am

    Yes there is something they’re not telling us. The ‘bad mortgage’ crisis is only the visible tip of the iceburg, but the real problem is not really a secret. It’s just that financial people don’t like to talk about it.

    From the Bill Clinton era until quite recently, the USA, and indeed the whole world, experienced strong consumer and financial growth to the benefit of a majority of the world. However, there are two types of growth – healthy growth and cancerous growth.

    Healthy growth is acheived through the mankinds fortitude, invention, and experience. Producing consumer goods more efficiently with new industrial technology, developing methods of food and energy production, improving our service industries and creating lifestyle improvement are all examples of healthy growth, and we are all better for it. Such healthy growth creates financial growth and produces a real improvement in the lot of mankind. Doing things in new ways with invention, and improving efficiency enables goods and services to be provided more cheaply, making more profit for the employers and higher returns for their employees.

    Cancerous growth is imaginary growth. Growth which doesn’t really exist other than on account sheets, computer files, or worst of all, peoples imagination.
    An example of imaginary growth are the laws of supply and demand which raises prices when supply is short and drops them when supplies are plentiful. Another example is ‘profiteering’ and financial manipulation which provides goods and services on assumption that value will rise. A third example is warfare – there is potential growth in the building of a country or state, there is potential growth in the provision of weaponry and soldiers to wage war, and there is potential growth in rebuilding the country after the war is over, but at the end of the day all that remains is the same country so all the growth has been imaginary.

    For twelve years most of the world has seen real growth around the 3 to 4% mark, and financial growth around the 6 to 10%. This puts cancerous or imaginary growth at between 3 to 6% each year and this growth, because it wasn’t really there at all has to be paid for. We pay for imaginary growth with a recession, or a depression which redresses the balance, and that is exactly the stuff our iceburg is made of – imaginary growth.

  10. Reply
    May 2, 2011 at 3:46 am

    I believe if you go back in time, you will see that slick willy clinton passed a bill to loan to low income minorities!! and I believe bush ok’d it also, there where the problem begins, and then it just went nuts after that, greed greed!! good God how much greed to you need!!!! to be a dweeb!!!

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