Now that our economic recession is a reality it is time to take a look a what got us here. No one will deny the role that subprime mortgages have played in the economic tragedy being savagely played out in the homes of those who can least afford. As late as August 2007 Mississippi ranked first in the percentage of subprime mortgages past due at 23%. This crisis created by unfettered greed and the nearly criminal intent to take advantage of the vulnerable, has allowed some of our neediest citizens to be seduced by the predators of the subprime industry.
In 2007 a vote came in front of the House of Representatives on whether or not we should regulate the subprime mortgage industry. Does Roger Wicker take the side of his constituency, many poor and victims of predatory lending, or with the big money interests on Wall and K Street? Well I think we all know what Roger Wicker did, exactly what Bush and Cheney told him to do. "Rubber Stamp Roger" voted against regulations that would have helped to curb this crisis as well as help the thousands of Mississippians caught in the cross-hairs of this debacle. Don't take my word on it, click on these links and read for yourselves
H.R. 3915
Rubber Stamp Roger's vote on H.R. 3915
I'd argue that everybody is to blame in the subprime mortgage mess. The lenders that made these loans and ignorant people that took them. Two idiots here: 1) the person who buys a $300,000 house with no money down with $60,000 household income, and 2) the person that loaned them the money. (Banks should only loan 2.5 to 3 times your income for a house, generally, so 60k X 2.5 = $180,000).
ReplyDeleteI can't speak for Wicker's role in this, but relief to anybody in this matter is inherently unfair to those people that lived within their means and the banks that avoided subprime lending and easy money. It is unfortunate, but people are going to lose "their" homes. I say "their" because this isn't real ownership, but rather occupancy.
I believe Congress should leave this alone. People will either reaffirm their debts with new plans, or lenders will be stuck with a lot of real estate. Lenders are in the business of loaning money, not managing property. This could drive prices down for homes and maybe benefit legitimate homebuyers. In the mean time, we all suffer from a slumping economy. (PLEASE make tax cuts permanent, PLEASE).
If Congress would leave this alone like you suggest should happen then the slumping economy will only worsen. Intervention is both needed and necessary.
ReplyDeleteCould you define intervention?
ReplyDeleteThe government is not going to solve this problem. Which other problems has the government solved? How's that War on Poverty, aka The Great Society, progressing? Talk about a long war; it's going on 50 years!
ReplyDeleteBoth the lenders and the buyers are to blame in this situation. I'd say that greed worked both ways. Over 90% of Americans are not behind in their home loan payments.
Crickets chirping. A good soundbite is better than discourse.
ReplyDelete