The only time mortgage confusion was higher that it is right now is back when sub-prime mortgages were not known to be the cesspool that we now know them to be. The world economy has collapsed. Much of the world lays the blame for the collapse at the feet of greedy Americans. While this is patently unfair (who’s not happy to sell us crap?), it is true that three American parties do share the blame. The first two are those who bought homes they couldn’t afford and those who gave them mortgages. Of these, the most dangerous and most responsible party, the Federal Reserve Bank, is also the malefactor fingered the least. I’ve been reading a lot about geld lenen met bkr in Dutch.
The Federal Reserve is the party most responsible for destroying the global economy. This private corporation, charged by Congress with managing our money supply, cannot be trusted. Did you see Jon Stewart hammer Jim Cramer, the host of CNBC’s Mad Money, on who did this? Well, the answer is, the Federal Reserve Bank did it. President Barack Obama’s failure to replace Ben Bernake at Treasury and the failure of Congress to set about replacing the Federal Reserve Banking System are unconscionable.
Mortgage contracts were made with such low standards that mortgage brokers tried selling a subprime mortgage to every living, breathing person they spotted.. They dit it in a way that would make the most hardened magazine subscription telephone sales person squirm.
These shaky mortgages were then bundled and sold to financial firms as ‘asset backed paper,’ the now infamous ‘toxic assets’ we, the taxpayer, are buying from the banks. Question: What is another word for a toxic asset? Answer: A liability. The government is effectively using your money to buy these liabilities named toxic assets.
What will happen going forward? People who can’t afford things will not buy them. And people who can afford something will save to buy it instead of putting it on the credit card. I cannot conceive of people so clueless that they make the largest financial commitment of their lifetimes without reading the document they are signing – or at least paying a lawyer or advisor to do so. These people should never have been allowed to purchase a home, and they certainly shouldn’t be rescued from foreclosure.
