Are financial leaders have proven themselves to be a ship of fools. The leadership offered is a socialist vs. a watered down free market solution embedded with heavy lobby money. Lobby financial interests have befuddled clear thinking.
Selling an expensive assets such as a homes to those who are unprepared financially to deal with making mortgage payments, insurances and property taxes is foolish. But that is exactly what president Jimmy Carter did by passing legislation encouraging such loans. This started the disconnect between reason and reality and utter foolishness. Political meddling into economic issues and sound lending practices kills the golden goose every time.
Along came Bill Clinton who put extra teeth in the law by punishing mortgage and investment companies that did not extend credit to people who were bad credit risks. He put them into residences they couldn't afford let alone deal with the property taxes. A further deregulating and credit risk was encouraged by mortgage companies; those that didn't comply to lose lending practices were hampered from expanding their footprint in the community.
Fannie Mae and Freddy Mac bought these loans, repackaged these loans and sold them on the open market. They sent hundreds of millions of dollars by their lobbies to politicians that in order to continue this masquerade.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This dramatically increased their risk as well as dramatically increased their short term profits.
Federal Reserve economists put their stamp of approval on this financial gimmickry and allowed this charade to continue. Acorn (Association of Community Organizations for Reform Now) and other kindred socialist leaning organizations further aided in twisting banks to make even more fraudulent loans.
SEC Chairman, Banking Committee Chairman, The House Finance Chief and scores of public official's rubber stamped this cancer because of the easy lobby money directed at them. Greed for lobby money tempers sound judgment it seems. The only way to end this type of self perpetuating system is to put anyone who accepts lobby money into prison and banish them from government service.
Hot air balloons have a way of crashing when their fuel runs out. When the rise in real estate prices came to a halt and the value of real estate assets declined combined with a foreclosure explosion, the market imploded. The government created the problem and a 700 billion dollar bailout (laden with funding for pork projects) is meaningless. The credit boom is over. But, where is the outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower real estate assessment values. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should investigate whether you have a case. - 16459
Selling an expensive assets such as a homes to those who are unprepared financially to deal with making mortgage payments, insurances and property taxes is foolish. But that is exactly what president Jimmy Carter did by passing legislation encouraging such loans. This started the disconnect between reason and reality and utter foolishness. Political meddling into economic issues and sound lending practices kills the golden goose every time.
Along came Bill Clinton who put extra teeth in the law by punishing mortgage and investment companies that did not extend credit to people who were bad credit risks. He put them into residences they couldn't afford let alone deal with the property taxes. A further deregulating and credit risk was encouraged by mortgage companies; those that didn't comply to lose lending practices were hampered from expanding their footprint in the community.
Fannie Mae and Freddy Mac bought these loans, repackaged these loans and sold them on the open market. They sent hundreds of millions of dollars by their lobbies to politicians that in order to continue this masquerade.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This dramatically increased their risk as well as dramatically increased their short term profits.
Federal Reserve economists put their stamp of approval on this financial gimmickry and allowed this charade to continue. Acorn (Association of Community Organizations for Reform Now) and other kindred socialist leaning organizations further aided in twisting banks to make even more fraudulent loans.
SEC Chairman, Banking Committee Chairman, The House Finance Chief and scores of public official's rubber stamped this cancer because of the easy lobby money directed at them. Greed for lobby money tempers sound judgment it seems. The only way to end this type of self perpetuating system is to put anyone who accepts lobby money into prison and banish them from government service.
Hot air balloons have a way of crashing when their fuel runs out. When the rise in real estate prices came to a halt and the value of real estate assets declined combined with a foreclosure explosion, the market imploded. The government created the problem and a 700 billion dollar bailout (laden with funding for pork projects) is meaningless. The credit boom is over. But, where is the outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower real estate assessment values. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should investigate whether you have a case. - 16459
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Before you accept your property assessment as accurate, look at a property tax abatement guidebook that could lower the amount you pay in property taxes. Property tax records have a high chance of error and a property tax appeal can lower your property taxes for years.
