Late Payments, Foreclosure Rates Hit Record

This is all due to GREED on the part of brokers, lenders and worse - buyers!

Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

Well said Bob...

I'm middle class; know not one single soul who is out of work, in danger of being unemployed, or of losing their homes and all of us have money in the bank! And we owe this honor to our grade school teachers who taught us how to read, something I did before signing on the dotted line when making the largest purchase of my life! Oh yeah, the arithmetic we were taught helped too!

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

Sept 29, 2004

Franklin Raines, who has headed Fannie Mae since January 1999, is a formidable presence in Washington, having run...

President BILL CLINTON's

...Office of Management and Budget from 1996 to 1998 during which time he was key in engineering the bipartisan Balanced Budget Act of 1997.

Last week, the Office of Federal Housing Enterprise Oversight said management including Raines reaped millions of dollars in bonuses thanks to the company's use of improper accounting techniques.

Fannie's problems began when the financial regulator issued a report accusing the mortgage company of using improper accounting to smooth its earnings, tolerating weak internal controls and postponing the booking of $200 million of expenses.

That postponement enabled the already highly paid Raines -- whose compensation came to about $20 million last year -- and other top executives to collect millions of dollars in bonuses that were pegged to the company's performance. The regulator's report says Raines received $1.1 million in bonus pay in 1998.

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

September 30, 1999
Fannie Mae Eases Credit To Aid Mortgage Lending

Fannie Mae, the nation's biggest underwriter of home mortgages, has been UNDER INCREASING PRESSURE FROM THE CLINTON ADMINISTRATION to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

IN MOVING, EVEN TENTATIVELY, INTO THIS NEW AREA OF LENDING, FANNIE MAE IS TAKING ON SIGNIFICANTLY MORE RISK, WHICH MAY NOT POSE ANY DIFFICULTIES DURING FLUSH ECONOMIC TIMES. BUT THE GOVERNMENT-SUBSIDIZED CORPORATION MAY RUN INTO TROUBLE IN AN ECONOMIC DOWNTURN, PROMPTING A GOVERNMENT RESCUE SIMILAR TO THAT OF THE SAVINGS AND LOAN INDUSTRY IN THE 1980'S.

''FROM THE PERSPECTIVE OF MANY PEOPLE, INCLUDING ME, THIS IS ANOTHER THRIFT INDUSTRY GROWING UP AROUND US,'' SAID PETER WALLISON A RESIDENT FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE.''IF THEY FAIL, THE GOVERNMENT WILL HAVE TO STEP UP AND BAIL THEM OUT THE WAY IT STEPPED UP AND BAILED OUT THE THRIFT INDUSTRY.''

Taken from: http://query.nytimes.com/gst/fullpage.html...

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Again, this article is from 1999 - the Clinton adminstration.

THEY are the ones who started the trend of lending to unqualified borrowers and subprime lending.

Liberalism is the origin of this current mess.

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

From an article in the current issue of Rolling Stone magazine :

"In truth, Obama is still raising tons of money from big corporate donors. In June alone, as Obama was raking in more than $30 million from small donors, he also bagged $6 million in a single fundraiser at Ethel Kennedy's home in Virginia and another $5 million at an event in Hollywood. But time and time again, you see Obama aides boasting about how the day of the big-dollar donor is over. "More people are involved, and I think that necessarily dilutes the impact of any individual — which is probably a good thing," one prominent Obama supporter recently declared. This staunch champion of the small donor happened to be none other than James Rubin, son of former Goldman Sachs co-chairman Bob Rubin.

Obama's decision to embrace Clinton's moneymen coincided with his decision to attend a public forum on economic policy with an A list of Clinton-era economic advisors, including Rubin and Corzine. "The message is that he's going to be a friend to Wall Street, just as Bill Clinton was a friend to Wall Street," says Pollin. "Wall Street will want to be at the head of the table."

By now it should be clear what type of service Wall Street will demand.

"They want to make sure there's socialism when they need it — bailouts — and capitalism when they need that," says Pollin."

Sherry wrote:

<quoted text>
Well said Bob...
I'm middle class; know not one single soul who is out of work, in danger of being unemployed, or of losing their homes and all of us have money in the bank! And we owe this honor to our grade school teachers who taught us how to read, something I did before signing on the dotted line when making the largest purchase of my life! Oh yeah, the arithmetic we were taught helped too!

Co-sign with you both. I've even read people claiming they didn't know what they were signing... so, why sign? If they didn't fully understand the conditions of their contract they should have been well-informed before picking up that pen. I asked questions all day everyday leading up to and after closing on my home.

Let's look at some of the other issues driving up defaults, foreclosures and late on payments. Extremely high gas prices, soaring food prices, out of control interest rates and late payment fees, business cut backs, layoffs and industry closing plants in this country, the lack of pay keeping up with the increases, retail sales way down and an incredible amount of retailers closing stores throughout the nation, just to name a few of the issues.

I refinanced while I was making good money, then the company I work for cut everyone way back and my pay went way down as they cut our pay as well as cut us back. All my expenses have gone way up while my pay went south. I'm now one of the defaults despite all my efforts to fix my dilemma. I still have a job, but at one third the pay I was getting before. I am working on increasing my income, but it's to late for me to save my house.

The way I see it, the call was made for industry to cut back due to impending possible recession, a self fulfilling prophecy as business heeds the warning and starts raising prices and cutting expenses. So we all go down hill thanks to everyone in charge following the command call. So of course there is going to be record defaults when we have record price increases and record discord in incomes to keep up with those increases.

This is simple math, not rocket science that takes a genius economist to figure out and explain.

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

Actually, to really explain where this came from, our democratic congress wrote these financing principles into law and those so called greedy people just followed what was allowed by the new laws.

Thank our democratic blunder head leaders, not the mortgage lenders as much, but they are also guilty as they knew it was a house of cards, but followed the law anyway.

Bob wrote:

This is all due to GREED on the part of brokers, lenders and worse - buyers!
Basic financial literacy is lacking at all socio-economic levels. One of the best books you'll ever find about finance is "How to become Filthy Rich on Your Current Income" at www.how-to-become-rich.com . If people read books like this one we wouldn’t have the current situation we do.

I am interested in buying that book. Is it worth the $100 bucks? Will I really learn what it says I will?