Posted by
Chrystopher Smith is "That Darn Republican" on Tuesday, September 23, 2008 9:18:31 AM
Hank Paulson, a long time Wall Street Insider himself could only offer a solution that benefits people in his position. As a former stock broker myself... I can tell you never have the wolves tell you when it's dinner time, especially when you're the main course. Our impudent law makers have opted for looking a solution that is socialist at best, a massive transfer of wealth. Didn't we learn anything thing from the S&L crisis? They did... how to get fat and stick the Fed with the tab... both liberals and conservatives are to blame.
Yet I cannot blame the mortgage companies entirely here... they make loans to who they can, I have said this before in other posts. Our credit system is the problem. Our inventories are strained... 51% of the working populous have a FICO score of under 620. In a capitalist environment that clearly dictates demand fuels the supply. The supply of creditworthy home owners is in the minority, with the stockpile of home inventory housed by the credit weak. Real estate agents are lording over REO inventories, which most people learned a serious lesson from the first time around 15 years ago. It begs the question - what happened to the Insider Information Act of 1992? Why should banks be issuing tons of $200 to $1000 credit cards to hundreds of thousands with D credit, when they can walk away and stick everyone. Did I miss something here? Credit cards you can walk away from. A house has no legs, great credit or not... you fall behind and you're out just like someone with bad credit. We need a credit system, overhaul when the emphasis is on your income above all. When your income becomes the stimulus and overall motivation to live better, it takes the wind out of the sails of the social justice engineers who blame everything but do nothing
The Fed should have posted the REO's on a web site where people can bid in a lottery style systems where if you purchase a home, you are disqualified from another purchase for three months. You don't need to qualify those homes... you just need to afford them, please tell me how almost instantly our economy would turn around if we put people in homes? The whole thing with the REO inventory is the bank cannot get more money to lend unjtil they right that loan. Now does it make sense that the government step in when there are people who needs homes who could right what the government claims they need to pay out to correct, absolutely not. If they did this one thing, they would oversee the largest expansion and growth of ecomony that could potentially dwarf Reagan era productivity. It is time for a changing of the mental guard in D.C. and no... liberals aren't the solution. But niether are republicans... a social conservative will do just nicely.
Carpe Diem folks... you can't seize the day when you're not living in it.