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RECOVERED HISTORY: WHERE THE TROUBLE BEGAN
USA Today, January 2006 - As housing prices soared last year, an eye-popping 43% of first-time home buyers purchased their homes with no-money-down loans, according to a study released the National Association of Realtors. The trend is potentially ominous. The real estate market is cooling in some areas, and rates on adjustable-rate loans are creeping up. As a result, some no-money-down buyers could owe more than their homes are worth. The median first-time home buyer scraped together a down payment of only 2% on a $150,000 home in 2005, the NAR found. Already, home prices in many areas are declining, and the "For Sale" signs are hanging in front yards longer. There's now at least a 50% risk that prices will decline within two years in 11 major metro areas, including San Diego; Boston; Long Island, N.Y.; Los Angeles; and San Francisco, according to PMI Mortgage Insurance's latest U.S. Market Risk Index. . . Dean Baker of the Center for Economic and Policy Research says that if housing prices fall at least 10%, it could be even more damaging than the collapse of the high-tech stock bubble in 2000. . . Baker and other economists are concerned that many lenders have pushed a series of creative but potentially dangerous loans to help more Americans afford a home.
2 Comments:
Pull quote: "economists are concerned that many lenders have pushed a series of creative but potentially dangerous loans".
Notice that USA Today, despite it's concerns regarding the housing business just couldn't bring itself to use the "F-word". I mean Fraud. Notice that things have not changed even today. We hear about "toxic assets." How about plain, old Fraud? Nary an utterance of that word in the press. Conspiracy? Nah. Just one hand washing the other. 'Twas ever thus, just not quite so brazen.
The word 'fraud' leads to the word 'prosecution'. Which of course is the most unspeakable word. You are far more likely to hear George Carlin's famous seven words before you hear corporate media utter the 'P-word' concerning corporate crimes.
What this really means is that we shouldn't really pay much attention to USA Today. Or the other corporate media. We know it was fraud. We know people should be prosecuted.
If these massive Democratic majorities and a Democratic presidency don't lead to the prosecutions that we know should occur, then we need to replace these bought-off pro-corporate politicians with politicians more to our liking.
Obviously, that's not Republicans. So, the failure of the Democrats to pursue any possible prosecution of the greatest financial swindles in the last hundred years means that we need to send someone else to represent us.
And, corporate America, these corporate political parties, and the corporate media will not just send you such a representative on a silver platter. You are going to have to work and create them on your own.
In fact, you'll constantly be attacked and opposed by the Democrats and the corporate media. They'll tell you that it is hopeless. They'll tell you that you can't possibly win. They'll ignore you. They'll ridicule you. When you start to seriously challenge them, they'll attack you.
All of the above are just signs you are doing the right thing and heading in the right direction. Every attack should be viewed as a voice saying "You are getting warmer."
We know there was fraud. We know there should be prosecutions. That lots of wall street executives and employees are getting million dollar bonuses instead of orange jumpsuits tells you all you need to know about our political system and the 'opposition' that the Democrats provide.
The question is, are you going to start to change this today?
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