11 Comments Add your own

• 1. Effmuh  |  October 10th, 2008 at 10:43 am

  Applesauce, that’s what this is. Wow, I’d thought during the DNC that maybe Chuck had turned into a pod person.. but this?? Wow.

  “And believe me, they engage in this kind of race-hatred talk at GOP fundraisers when they don’t think anyone is listening”

  What what WHAT!??!?

  Pod person, that’s what is has to be… a pod person

  Suuuuuuuuure, all GOPpers are RACIST. Yea, and all DEMOCRATS are COMMUNISTS.

  http://www.worldnetdaily.com/?pageId=77539 - Maybe you’re right, this link is Louis Farrakhan’s take on the Messiah

  Say it ain’t so Chuck, you realize that you’re playing right into the hands of those who are trying to scare weak minded individuals into thinking that challenging the messiah’s points on any issue is racist. It’s not, in case you were wondering.

  ANY racial politicking is just bad, idiotic, and well.. wrong. In my, I guess, rednecky republican opinion. Race doesn’t exist. Humans are humans. While there may be stark cultural differences that exist all over the country (I’m Irish, should I hate the English?) Differences in culture have always made this nation stronger. That is, as long as we remember that we’re a melting pot of homogenization and not little kingdoms, like say, Europe has been for the last thousand years. Look where keeping their cultural divide relevant has gotten them.

  Sub-Prime loans were encouraged by congress (and W, I’m sorry to say) as a way to bring more so-called “fairness” into the homebuying system. The crap loans were bundled to be sold to Fannie and Freddie and were toxic to begin with. Everyone passed them around. Banks and other finanacial organizations sold these bundles as securities and international banks bought them too. Banks were basically intimidated to do this by groups like ACORN and other “community organization” groups.

  Irresponsible use of credit in the name of “Fairness” took us down this road.

  Here’s a good link to another ultra-right winger with a much better explanation than I can come up with for this mess:

  http://www.glennbeck.com/content/articles/article/198/16171/?ck=1

  It’s a well written article with plenty of links to substansiating information. It’s a good read for anyone and is part of a 3 part series.

  Pod person, it’s gotta be that.

• 2. Drew  |  October 10th, 2008 at 4:18 pm

  I think this fellow can explain it better than I can

  http://www.youtube.com/watch?v=IHeFjsq_gM8

• 3. snuss  |  October 10th, 2008 at 6:14 pm

  Gee, is Sweeny starting to sound like Obama? Any time you talk about something negative, out comes the race card. I dare say that the sub-prime loans were made to people of ALL colors, and being talked into signing one of these says that the poor of this country are ignorant of the financial world. Their melatonin levels are not the reason they were flim-flammed by greedy bankers, and groups like ACORN, into buying homes that they couldn’t pay for.

• 4. hokumboy  |  October 11th, 2008 at 10:29 am

  Has anyone released any figures as to the percentage of forclosures made on people who bought houses (not homes) solely to “flip” and then walked away when the market got bad?

• 5. Effmuh  |  October 11th, 2008 at 2:06 pm

  “Flippers” are indeed part of all of this. However, whether they’re more of a symptom of the problem or have a more causal role can be debated. In my opinion, one of the problems with current trends in Real Estate investing and “Flipping” in general is that it turns real estate into more of a commodity, and artificially inflates the price as people transfer properties around the marketplace.

  Warning - Extreme simplification below

  It used to be part of the American dream to own a home for your family. Residential properties were packaged so that young couples would buy them, take care of them, raise their families in them, and then sell them when they upgraded to a higher economic tier through age, or needed to retire. The price points hit a strata of starter homes for young couples, family homes for people who needed more space and who had progressed in their profession, and bigger or retirement homes for people who had larger incomes, or no longer needed to have a family home due to age. People paid their mortgages, and used them as an asset. Home prices rose with inflation and some other forces, such as population and industrial growth, and the system worked well in the old economy.

  Enter the flippers. They bought up properties quickly, beginning with very distressed properties. They fixed them up, usually not as well as you would fix up a home if you were going to live there yourself, and sold them at the top of their market range for a profit. It’s not evil to make a profit, however the old market adage that by the time the majority learns of a great opportunity and gets into it, the money has already been made.

  The problem with flippers and real-estate speculators is that the strata of home prices broke and prices skyrocketed as more and more people bought properties on spec and raised the selling price for the homebuyers trying to find a place to live. The problem compounded when more people got into real estate speculation and bought pre-flipped properties through naïveté. The result was that the price of real estate skyrocketed past what the real market could support.

  Enter the “Community Organizers” and their friends in law-making bodies. They correctly saw that home prices were outstripping what home-buyers could afford. Instead of letting the marketplace crash and letting prices stabilize through free-market forces, they intervened and propped up the market by loosening up restrictions on what the Government corporations Fannie Mae and Freddie Mac would buy on the secondary mortgage market. (Your local bank doesn’t hold your mortgage anymore, usually even if they “service” it by taking your payment, they have bundled your loan with other loans of varied stability and sold it to a bigger bank, or directly to Fannie Mae or Freddie Mac. A lot of people hold mortgage debt hidden in the various mutual funds that they own through investing and in retirement savings) Community organization groups like (surprise) ACORN pressured banks to make loans to disenfranchised groups through things like the “Community Reinvestment Act” and frankly, accused banks that wouldn’t lend to poor people because they were bad financial risks as being racist. (See the original post from the respectable and honest columnist who may have been replaced by a pod-person). By forcing banks to make loans to people who couldn’t afford them so that these people who couldn’t afford the loans could afford real estate in markets where the prices were too high because they were overinflated by flippers and real estate speculators, the legislators and real estate tycoons crashed the global financial system.

  Yes, that last paragraph was complex. I’ll help it here. The banks, and the people who were their friends in Washington (and yea, I’m going to say friends of the Democrats like Barney Frank’s former lover who was a Fannie Mae executive, and the three main recipients of lobbying money from Fannie Mae – Barney Frank, Barak Obama, and John Kerry in that order) made money selling the toxic mortgage debt based upon mortgages given to people who couldn’t afford them as encouraged by community organization groups (Barak Obama et al) to Fannie Mae and Freddie Mac, who bought them using tax-payer supported money. The real-estate investors made money because they could continue overinflating the prices because the end-user of the home could get these toxic mortgages. The politically connected got money in sweetheart deals and “donations”. The congressmen got money in the forms of “campaign donations” and lobbying.

  And the taxpayer got a stick in an unpleasant orifice.

  End - Extreme simplification

  Questions??

• 6. Sparky  |  October 12th, 2008 at 7:49 am

  Chuck,Chuck Chuck,

  Why must you put a racial spin on this? And who cares what the Guardian newsrag in the UK says. That paper has a lousy reputation. This is the United States Chuck, not the United Kingdom. Their problem lies with the markets and them investing in our “bad paper”. If they didn’t know about derivitives, credit default swaps, and predatory lenging and bought all that funny money paper, that’s their fault. But really now, do you honestly think they didn’t know the subprime mortgages were high risk paper? Come on….. They are guilty of the same predatory means of making a buck, or a pound.

  And if you’re going to throw out any statements of who is at fault for this mess…. you’re right one one count. It’s not the fault of “poor blacks” who were conned into believing home ownership is a right, and that they qualify for mortgages not matter what their income status. No instead it’s their own people preying upon them. It’s the rich blacks like Obama, and all the other black “Community Organizers” who perpetrated this scam on the ‘unwitting’ poor blacks. The black leaders (Jesse Jackson, Louis Farrakhan, Al Sharpton, etc) are all leading their own people down the primrose path to hell. Read this for one honest black mans view of how welfare destroys the black people:

  http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=32454

  And here’s another of his articles that would be called racist if it were written by a white man, but Jesse is a black man, odd!!!

  http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=62989

  We are all so caught up in being “politically correct” and “multicultural” that we cannot speak the truth about anyone or anything.

  This whole ugly financial charade has been in the making for decades by the extreme left. It’s socialism in the making, that has been written about and formulated by people like Obama’s dear friend Ayers and others. A society that is largely dependent on government and public assistance cannot survive and will ultimately collapse. That is what we are seeing today.

  You really wanna know what happened Chuck??? I doubt it, but here’s the answer for the free thinkers out there who aren’t brainwashed, yet:

  http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html

• 7. Sparky  |  October 12th, 2008 at 7:58 am

  http://www.americanthinker.com/2008/09/
  barack_obama_and_the_strategy.html

• 8. hokumboy  |  October 12th, 2008 at 11:54 am

  Effmuh,

  Interesting analysis.
  But that doesn’t answer my question:

  Has anyone released any figures as to the percentage of forclosures made on people who bought houses (not homes) solely to “flip” and then walked away when the market got bad?

• 9. Gumby  |  October 13th, 2008 at 5:24 pm

  Sad - I actually heard a Republican County board candidate (who shall remain nameless) state, “the entire crisis is because we started lending money to blacks.” I can’t beleive there are still people this ignorant running for office!

• 10. hokumboy  |  October 13th, 2008 at 6:51 pm

  Even Sadder - I CAN believe it!

• 11. Effmuh  |  October 14th, 2008 at 9:26 am

  I don’t believe it, actually

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