See the global crash hit home

It's more complicated than John states.

First, thanks to the loosening of federally backed low-income loans people who normally could not afford home suddenly saw themselves getting EZ loans.

As I recall, that was done about 3-4 years ago by Democrat Chris "let's give CEO's bailout bonuses" Dodd and Barney Frank under a Democrat controlled Congress.

Anyone remember what happened to nice Chicago neighborhoods in the 1960s?

President Johnson and the Democrats enacted legislation that made it way too easy for poor, low to no income people buy homes.

These people on welfare bought homes but had no money to maintain them, and all the while they brought with them their culture of crime.

So, John, tell that to your journalism students. Feel good policies that everyone should own a home apparently didn't work in the 1960s or this decade.

Those are valid points but lets try to be balanced. The banking industry has a lot to do with this and it was all about padding the bottom line. When the Government bails out the bank, hardly any executives lose their jobs and nobody is charged with a single crime, we have a problem much larger then just people taking out loans they couldn't afford. A whole industry was born where they packaged these loans as a investment. Until that industry is abolished, expect more fraud in the future - just packaged in a new way.

Earnest in Evanston - you said it. I've been selling real estate for 20 years and saw what the liberal Dems were doing, we were all nervous about the change of events. Used to be you had to have a good down payment, money in the bank, and excellent credit before you could buy a home. But this changed when the left decided EVERYONE should be able to own a home - that it was a right, not a privilege. This is also what they are going to do to health care. You ain't seen nothin' yet. Please, everyone, stop falling for this liberal b.s.

THF wrote:

Those are valid points but lets try to be balanced. The banking industry has a lot to do with this and it was all about padding the bottom line. When the Government bails out the bank, hardly any executives lose their jobs and nobody is charged with a single crime, we have a problem much larger then just people taking out loans they couldn't afford. A whole industry was born where they packaged these loans as a investment. Until that industry is abolished, expect more fraud in the future - just packaged in a new way.

Those are valid points where high risk loans are packaged into low-moderate risk mutal funds.

But if you simply tighten loan requirements you stop the high number of loan defaults, i.e. high risk loans.

BTW-what crimes did these executives commit? They were just following the rules laid out by the government, which increased the backing of high risk loans through Fannie Mae and Freddie Mac. So, banks decided to issue more high risk mortgage loans because the government promised to back them if they went into default.

This problem occurred not so much with the banks or financial institutions but more with Fannie and Freddie in which people like Alan Greenspan, Bush and McCain warned about in 2005.

btetervrf

Mark Kirk (Illinois 10th) voted for the energy tax and job loss bill this last week, You can thank him when Abbott, Baxter and Hospira move more jobs overseas. Be sure to call him and tell him how much you appreciate him selling his constituents jobs and childrens futures to the monied interests.

oldchicago wrote:

Mark Kirk (Illinois 10th) voted for the energy tax and job loss bill this last week, You can thank him when Abbott, Baxter and Hospira move more jobs overseas. Be sure to call him and tell him how much you appreciate him selling his constituents jobs and childrens futures to the monied interests.

I am so disappointed in him - I will be calling and voicing my opinion - hope you will all do the same.

Hey you crybabies, field a better candidate next time.

Maybe Palin/Jindal will work for you. Or Ensign/Stanford. Maybe Foley/Craig will get you the gay pedophile crowd.

Or maybe the Gingrich/Limbaugh ticket can nab you those who have been through several (sacred) marriages and those who can't even get a girlfriend.

Earnest in Evanston wrote:

<quoted text>
Those are valid points where high risk loans are packaged into low-moderate risk mutal funds.
But if you simply tighten loan requirements you stop the high number of loan defaults, i.e. high risk loans.
BTW-what crimes did these executives commit? They were just following the rules laid out by the government, which increased the backing of high risk loans through Fannie Mae and Freddie Mac. So, banks decided to issue more high risk mortgage loans because the government promised to back them if they went into default.
This problem occurred not so much with the banks or financial institutions but more with Fannie and Freddie in which people like Alan Greenspan, Bush and McCain warned about in 2005.

If Barney Frank was a Republican, he's be all over the news and he would have been destroyed for his efforts in turning the mortgage industry into a social program (and thus ruining a part of it.)

Even worse, he's doing it again!
See "Fannie, Freddie asked to relax condo loan rules: report" at
http://www.reuters.com/article/GCA-Housing/id...

This isn't five years ago, it's now!!!

too bad the media is devoid of journalists an they mostly reprint what they are told by the Democrats.

I Monticus wrote:

Hey you crybabies, field a better candidate next time.
Maybe Palin/Jindal will work for you. Or Ensign/Stanford. Maybe Foley/Craig will get you the gay pedophile crowd.
Or maybe the Gingrich/Limbaugh ticket can nab you those who have been through several (sacred) marriages and those who can't even get a girlfriend.

As Obama and the Democrats continue to rip apart the economy, I suspect Congress will lose lots of liberal Democrats.

pat wrote:

Earnest in Evanston - you said it. I've been selling real estate for 20 years and saw what the liberal Dems were doing, we were all nervous about the change of events. Used to be you had to have a good down payment, money in the bank, and excellent credit before you could buy a home. But this changed when the left decided EVERYONE should be able to own a home - that it was a right, not a privilege. This is also what they are going to do to health care. You ain't seen nothin' yet. Please, everyone, stop falling for this liberal b.s.

This form of liberalism, Modern Liberalism (meaning comprised of the deep down liberals who are very ideological) is a mental disorder.

It's why they turned the mortgage industry into a social program.

It's why they have decimated the inner cities (especially blacks) for over 40 years.

It's why they a) hate drilling for oil even though it is very safe and b) why they would rather us pay hundreds of billions of dollars every year to countries/dictators for the oil that we have to have.

It's why they fight all forms of competition that would better the public the schools and thus help kids.

It's why they are willing to destroy our healthcare system.

It's why they teach us all to tolerate bad behaviors.

It's why they hate success.

It's why they embrace dictators/terrorists/our enemies and shun our friends.

It's all from the same mental disorder.

Watch the video "How Modern Liberals Think" at
youtube.com/watch... for a great explanation.

The Trib writer conveniently overlooked the ethnic shift in the Marquette Park neighborhood.

Back when Marquette Park was a Lithuanian-American enclave, the streets were clean, crime was low, and people weren't defaulting on mortgages. The Catholic Church was the cultural center of the community.

Some problems are beyond even government's power to fix.

RegularGuy wrote:

The Trib writer conveniently overlooked the ethnic shift in the Marquette Park neighborhood.
Back when Marquette Park was a Lithuanian-American enclave, the streets were clean, crime was low, and people weren't defaulting on mortgages. The Catholic Church was the cultural center of the community.
Some problems are beyond even government's power to fix.

Liberals like "journalists" cannot make the comparisons that you made. To the Modern Liberal, all behaviors are equal so the only way to explain any differences is that the people who aren't doing as well are victims and the reason is racism or greed.

It is impossible for them to say that other factors come into play. Find time and watch that video I mentioned:
youtube.com/watch...

It explains why theya re incapable of making rational judgments.

After finding out about this mortgage mess, the government should not give money to banks neither to Freddie Mac and Fannie Mae, as they were the perpetrators of this mess to begin with. They should be let to die,
http://www.huffingtonpost.com/henryk-a-kowalc...

Instead, the government should issue loans to the defaulting homeowners allowing them to pay banks for additional year or so. Banks should use this time to sort out their own mess, refinance on better terms mortgages that could survive, and write off the rest. More details:
http://www.huffingtonpost.com/henryk-a-kowalc...

We the people were screwed by the greed of wall street, People should be in jail, not enjoying their stolen money.

Earnest in Evanston wrote:

It's more complicated than John states.
First, thanks to the loosening of federally backed low-income loans people who normally could not afford home suddenly saw themselves getting EZ loans.
As I recall, that was done about 3-4 years ago by Democrat Chris "let's give CEO's bailout bonuses" Dodd and Barney Frank under a Democrat controlled Congress.
Anyone remember what happened to nice Chicago neighborhoods in the 1960s?
President Johnson and the Democrats enacted legislation that made it way too easy for poor, low to no income people buy homes.
These people on welfare bought homes but had no money to maintain them, and all the while they brought with them their culture of crime.
So, John, tell that to your journalism students. Feel good policies that everyone should own a home apparently didn't work in the 1960s or this decade.

Actually that was Bill Clinton with his "American Dream" crap.

You got it all right though.

On a related side note - The only reason why the economy was so great under Clinton was because people were spending borrowed money.

Over the past few years all this borrowed money that couldnt be paid back is coming back to haunt us.

That creep Clinton wanted to look like a savior and he knew the second the crap hit the fan he would be out of office for at least a few years.

Henryk A Kowalczyk wrote:

After finding out about this mortgage mess, the government should not give money to banks neither to Freddie Mac and Fannie Mae, as they were the perpetrators of this mess to begin with. They should be let to die,
http://www.huffingtonpost.com/henryk-a-kowalc...
Instead, the government should issue loans to the defaulting homeowners allowing them to pay banks for additional year or so. Banks should use this time to sort out their own mess, refinance on better terms mortgages that could survive, and write off the rest. More details:
http://www.huffingtonpost.com/henryk-a-kowalc...

So the government should buy peoples homes for them?

That is nothing more then a Bill Clinton ideological bailout. Clinton told project born folks who never had a job in their life to go buy a home and he made it easy with his no questions asked mortgages and loans.

Now these people cant pay and you want the government to bail them out for being stupid and greedy?

Freedom Lover wrote:

We the people were screwed by the greed of wall street, People should be in jail, not enjoying their stolen money.

Stop blaming the "man" man! Being greedy is NOT illegal! The "banks" are not to blame here. The SYSTEM within which the banks operate is the culprit. And who's in charge of the "system"? The OA, the Federal Reserve, and SEC. Don't expect "change" anytime soon because they are (hope)less. Bernarke is a fish out of water, and Geithner is right behind.

You can get a free Homeowner's Handbook on President Obama's "Making Home Affordable" plan at http://MortgageCreditTrauma.com . This plan outlines the rules and eligibility guidelines for 1st & 2nd loan modifications as well as giving a Loan Comparison Chart for Countrywide/BofA, CitiGroup/CitiMortgage, IndyMac Fed Bank and JP Morgan who is also accepting Washington Mutual and EMC Mortgage Corp customers.

Government meddling helped to drive up the prices in the first place. the governments directives led the banks and mort. companies to make all those loans. Doesn't anybody remember the law of supply and demand? Those houses have to descend to their "real" value. More government incentives will only cause the same problem again.