Re: Now *THAT'S* a letter to the editor!

"Mickey" <Mickey@xxxxxxxxxxxxxxxxxxx> wrote in message

Thems the facts, mam. Just the facts.

And another thing:

The vast majority of the losses is due to extreme overvaluation of real
estate. Non sub prime mortgages were pushed heavily using such new creative
tricks such as adjustable rates (ARM) loans. This only worked so long as
property values kept going up. This is the heart of the pyramid scheme.
Housing prices could not be sustained, ARMs reset and people with the means
to afford a house of lesser value were now in way too much house and had a
loan that was beyond their means to repay. This was not the sub-prime
market, this was the ALT-A borrowers and AAA borrowers who were sold very
dubious loans with the promise that they could refinance when in fact they
could not. This is where all the lost money went, into houses that were
overvalued sometimes as much as 500% of their real market value.

If you want to know the names of 2 of the biggest crooks, look no farther
than Alan Greenspan and Henry Paulson. Paulson made 500 million bucks by
helping to create the pyramid scheme and profiting handsomely from it. And
who is now in charge of fixing the mess? Why Mr. Paulson, of course.

So sorry to burst your bubble, Mike (get it - bubble) but this mess has
exactly nothing to do with removing redlining practices where a gainfully
employed minority family was routinely denied a loan given to lesser
qualified white families in the same town. That is all that reforms pushed
by dems were all about. It had exactly nothing to do with NINJA loans and
other extremely risky and even criminal activity on behalf of greedy banks.
You still had to qualify and provide proof of income.

The people being hurt the hardest now are the fools who refinanced their
houses multiple times exchanging fixed rate mortgages to really attractive
interest only loans or ARMs and then using fake equity (inflated housing
prices) as their personal ATM machine. But NONE of this would have been
possible without a great many changes to banking laws pushed through by a
wholly controlled republican government.



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