When will the bailouts stop!! It is simple math and you can not continue to bailout bad behavior and if you do where does it stop. Most people in the Congress knows that Fannie Mae and Freddy Max needed reforming years ago! 12 times since 2001 Bush administration tried to regulate these agencies to no avail , SCC Counsel reported Fannie Mae had bad accounting, and the last couple of years Republicans have tried but the media and Democrats say no. and I say no to this bailout!!! The root of these problems started with the Carter administration and went into overdrive with Clinton. Attorney General Reno threaten to sue financial institutions that were redlining and made these institutions make loans to people that are not financially worthy or capable to make these payments and then when the sub-prime loans adjustments went in effect it was no way to pay the piper. And what about the values of homes going up, and up, and up - you do not have to be a brain surgeon to figure that this could not keep going. And with the two above mention quasi-government entities pushing the sub-prime mortgages what were the other financial institutes going to do to stay in business-yes jump in the sub-prime mortgages with both feet. Then there is the political contributions of these agencies (Senator Dodd and Reprenstative Franks) and don't forget Senator Obama.
The there's the areas hardes hit by foreclosure wave which is no coincidence -- Loudoun County, Va., California's Inland Empire, Stockton and San Joaquin Valley, and Las Vegas and Phoenix, for starters -- also happen to be some of the nation's largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime (the accursed species of loan to borrowers with the shadiest credit histories). A quarter of all those subprime loans are in default and foreclosure.
Regional reports across the country have decried the subprime meltdown's impact on illegal immigrant "victims." A July report showed that in seven of the 10 metro areas with the highest foreclosure rates, Hispanics represented at least one-third of the population; in two of those areas -- Merced and Salinas-Monterey, Calif. -- Hispanics comprised half the population. The amnesty-promoting National Council of La Raza and its Development Fund have received millions in federal funds to "counsel" their constituents on obtaining mortgages with little to no money down; the group almost succeeded in attaching a $10-million earmark for itself in one of the housing bills past this spring.
The top banks clamoring for their handouts as their profits plummet, led by Wachovia and Bank of America, launched aggressive campaigns to woo illegal alien homebuyers. The quasi-governmental Wisconsin Housing and Economic Development Authority jumped in to guarantee home loans to illegal immigrants. The Washington Post noted, almost as an afterthought in a 2005 report: "Hispanics, the nation's fastest-growing major ethnic or racial group, have been courted aggressively by real estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: "Sin verificacion de ingresos! Sin verificacion de documento!" -- which loosely translates as, 'Income tax forms are not required, nor are immigration papers.'"
In addition, fraudsters have engaged in massive house-flipping rings using illegal aliens as straw buyers. Among many examples cited by the FBI: a conspiracy in Las Vegas involving a former Nevada First Residential Mortgage Company branch manager who directed loan officers and processors in the origination of 233 fraudulent Federal Housing Authority loans valued at over $25 million. The defrauders manufactured and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, "Fifty-eight loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million." Then there are other contributiors organizations supposely social justice organizations (Acorn, National Community Reinvestment Coalition Organization ) there job to protest and track financial institiutes and make sure they are making loans to minorities no matter the financial risk of the individuals! These organizations get grants from the federal government to do this!!!
When liberalism causes a problem, by all means, don't allow the natural equalizer of the free market to cure it. Insist on more government intervention under the theory that the problem is a result of too little government. It's kind of reminiscent of the Marxist promise of the withering away of the state, is it not? Just give us totalitarian control and we'll eventually unshackle the proletariat from government bondage. Right. There's also a bridge to the Kremlin they'd like to sell you.
When we strip away all the complexity, we discover that social planning largely led to this debacle. Government politicians and bureaucrats forced lending institutions to make un-creditworthy loans and helped create unnatural demand in the housing market by priming the pump on bad loans. This created an unnatural price bubble in real estate, which was securing these ill-advised loans. If Congress bailout this problem , it will be at the prohibitive price of even more government intermeddling. They've already said they want to subsidize — rather than demand accountability from — homeowners for their irresponsible loans. They want to demonize and scapegoat capitalism and Wall Street, which didn't cause this crisis, with further regulations.
One major lesson from this is the affirmation of the market principle that government does not create prosperity — only temporary bubbles that must go pop. When the bubble inevitably burst, the mortgages secured by the artificially inflated real estate plummeted in value, which left us with an epidemic of grossly under-secured loans.
It's so bad that even conservatives are considering supporting an unprecedented plan approaching a trillion dollars to "bail out" the financial industry — not as a sop to Wall Street or corporate fat cats, but to prevent a cascading effect that some financial gurus believe could lead to a depression.
If there is a bailout , it will be at the prohibitive price of even more government intermeddling. They've already said they want to subsidize — rather than demand accountability from — homeowners for their irresponsible loans. They want to demonize and scapegoat capitalism and Wall Street, which didn't cause this crisis, with further regulations.
One major lesson from this is the affirmation of the market principle that government does not create prosperity — only temporary bubbles that must go pop.