Read What I See

     There is way too much finger pointing and not enough truth and accountability in our present economic meltdown from mortgage lending institutions.  Something goes wrong and everyone go in the defensive and begin the culpability chain reaction passing the buck on to someone else.  Honestly, we should perhaps look at the origin of the crisis rather than just point fingers at the financial giants that are seen as the only perpetrators of ethics and fairness.

     There should be no doubt that abuses in trust and greed has been a contributor to the lending and foreclosure crisis but let’s expand our reach in culpability and not exclude the mortgage borrowers.

Follow up:

     It would be fair to say that it has been a goal of the Bush administration to promote home ownership and there is no mistake that before the current meltdown it was a noble and successful cause.  This cause was designed to make borrowing easier for new owners to qualify for loans.  How many people can come up with $30,000 or more for a first time home purchase?  Prior to the housing crash, for the first time in their life many had the opportunity to begin building equity on their own homes rather than giving it to someone they were renting from.

     This new home ownership brought about a construction boom that help the economy and created jobs and we should agree on this, so let’s not forget that we had very good times.  We should also notice that during this period there was a building cost increase that was in part caused by the rising cost of cement and steel while China was building the Three Gorges Dam.  I know for a fact because during that period I was building a home and the cost of steel and cement related products were constantly increasing.  The industry claimed that the surge in prices was due to exports to China.  Banks are also partly to blame for the increase in cost by allowing builders to make huge profits and ripping off home buyers for not following more strict rules in home appraisals.

     Ultimately borrowers should share most of the responsibility for the housing crash.  Borrowers in many cases were just speculators signing contracts on homes that they had not intentions to move into and were just gambling that they could resale them at a profit without having to move into them.  Borrowers are to blame for having pushed upward the average square footage of homes by shopping for a bigger home that they could afford.  Borrowers are to blame when they began to default on mortgages and thus created a home value downward chain reaction for forfeiting their commitments and obligations to banks.  Many borrowers have claimed that they cannot afford their mortgage loans while they are unwilling to make sacrifices and temporarily give up some of the other good things in life that they still enjoy.  Many borrowers have taken the easy way out and lived in their homes for free until they were finally kicked out by the banks.  Many borrowers could have temporarily looked for part time jobs to fulfill their financial obligations but opted not to do so.  Some borrowers were unwise enough to purchased something they could not afford; like a 2,000, square foot home instead of a 1,500 sq. foot.  Many borrowers have dodged their obligation and responsibilities and it would not be unfair to say that in many instances they have being victims of themselves.

     If it makes some feel better to blame the Bush administrations for the current crisis go ahead.  Perhaps it was after all a bad policy of the Bush administration to put so much confidence in some of our citizens assuming that they would take seriously the responsibility of owning a home.  Borrowers suffering have been augmented to politicize the mortgage crises without putting any blame on them.  Politicians for their own gains are making excuses for borrowers and giving them an undeserved free culpability ride.  It actually plays to the advantage of Liberals who seek for more government control. Victimizing irresponsible borrowers plays right into the hands of Liberals that seek government expansion.

     Feel good and enjoy the fact that we can blame the government for the current mortgage crisis for it is only in a Democracy that you can do that, but do not cheer too much on this.  We are rapidly shifting to the left and losing our freedom.  Prove of such is that we are failing to successfully blame our Congress for the current energy crisis as they spin their wheels and ignore our cries for action.  After taking a month recess while we were facing and energy meltdown they have finally returned and uncovered a new plan that is no different than the No Drill plan that they had before.  This new plan for drilling moves drilling closer to our shores.  Previously it was 200 miles now it would be 50 to 100 miles and offers no incentives for the states that support it.  In addition there are other items attached to the bill that will make it almost impossible to pass.  So this could be viewed as just an illusion to play more games with the wishes of our citizens.  The politicians arrogance in ignoring the voice of our citizens should be good enough reason to help some of them find a different job in November.

     Vote wisely in 2008