Tuesday, January 15, 2008

It's been the ruin of many a poor boy...

Why do people think that politicians can solve their problems? An article in the Baltimore Sun had a nice picture of concerned looking Jesse Jackson and a Baltimore City Council member holding a public meeting to call attention to the sub prime mortgage “crisis”. No harm there, in fact I applaud the reverend’s efforts. It puts additional pressure on private lenders to be charitable, honest, ethical, etc. However, I get concerned about statements like this one:

Jackson asked about 40 assembled clergy to call on their city council, state legislature and attorneys general to take action regarding the subprime mortgage crisis. He said the loss in tax revenue could affect public education, transportation and health services.

What, specifically, does Jackson want the government to do? Does he have a specific plan? Does he want the government to put a freeze on foreclosures? Raise taxes? Or does he just want to run his mouth in front of a camera?

I sympathize with those who are in over their heads with their mortgage. Corrections cause real pain while people pay for their imprudent decisions. Government intervention will only draw out the length of the correction and prevent people from learning from their mistakes. By the way, whatever became of Ken Ulman’s efforts to involve himself in the mortgage correction?

9 comments:

Anonymous said...

I'm working like a dog to pay off my house and if I have to pay for someone else to live more extravagantly than I do, it'll rightly piss me off.

Anonymous said...

FM, I hope you keep the mortgage "crisis" at the top of your list, as far as items of interest on your blog.

The benefit will not be, hopefully the attention your blog receives, as much as the fact that you may get people to think this through in a critical way.

I am naturally conservative, and this "crisis" reminds me of the dust bowl storms of the 1920's

Jessie Newburn said...

Ditto, FM. Double ditto. And Anon #1: "Say it like you see it." Now, Jim, love ya as I do, the dust bowl was a '30s phenomenon.

To add two more yuan: I blogged about the mortgage gambling crisis here: http://tinyurl.com/2vvsw7 .

Anonymous said...

Jessie, you put a smile on my face, as you did the first time I meet you. It's your spunk, your willingness to do battle that I enjoy.

Your right about the dust, but to develope my metaphor, I have to go back to the reason for the dust, and that occurred in the 1920's.

I will develope this thought later I have to get going, so I can make the world a better place, but you don't know how happy you, Jessie, make me for becoming part of this discussion.

Maybe with FM's help you and I can pull more people into this issue.

Love you to, we will have to do coffee, or maybe even lunch.

Anonymous said...

It Looks like not just Presidential candidates McCain and Clinton are showing some compassion, but now N.Y. Gov. Elicot Spitzer has joined their ranks with plans to address the mortgage "crisis".

Eludius said...

Why is that that the government wants to intervene in the subprime mortgage crisis? It's already promised billions of dollars to companies that made bad decisions. Rather than being punished for making bad decisions, the government is rewarding them with money. Let them collapse and be an example for those that are still around. Let the free markets determine their fate.

And for those that got into these mortgages themselves, I feel sorry for them when they lose their house, but again, they are the ones that got themselves in over their heads, not the rest of us. Let them lose their house and move into apartments.

Anonymous said...

I wonder how much of the "crisis" is due to simply greed. I know a lot of people who went out on a limb, bought a house they knew they could not afford using an interest-only loan, banking on the hope that housing prices would continue to rise at the rate they have been.

Sorry, but if you make $100k and you buy a house for $750k, it's no shock that you lost your home 2 years later.

What worries me are stories like Atta Poku's. I'm sure there's more to the story than what's reported, but it sounds like the guy got screwed by a company. On the other hand, he was really dumb to ignore the notices he received. But would it have helped?

Anonymous said...

It's not "them" against us. It is "We", and that is not just you and I. This problem is international. Japan, Korea, Singapore, Saudia Arabia, and Kuwait are bailing Wall Street out.

To give you a feel for the numbers.

The damage incured by Citigroup and Merrill Lynch because of the "crisis" exceeds $90 Billion.

Pres.Bush wants to give individual tax payers a rebate of $800.00 each with the hope this will improve the economy. the rebate will come to more than $1 Billion.

1 Billion is to 90 billion
as
$800 is to $72,000.

In accounting this would be referred to as a "Material" difference.
I donated more than $800.00 dollars last year to charities, but believe me no where near $72,000.

Some one ask what part of this is due to greed? Simple answer, 100%.
We are all greedy, it is part of being human, but what we need to do is keep our greed in balance.

We are one of the hardest working countries in the world, but what good is it, if we can't keep our head above water.

My home is paid for, my kids are in good shape financially, so I could do what some are suggesting. Blame the other guy, worry about myself,just stick my head in the sand, and wait for the problen to past.

But my head in the sand, means my butt could still get kicked.

I suggest we all read the Wall Street Journal (your libary has copies), attend the local County Council meeting, and not forget we can e-mail Annapolis as well as Washington.

Stay tune for the next "crisis", credit cards.

Anonymous said...

If there is anyone out there in blog land who knows me, I think their impression would be that I am laid back, and easy going, and if they were to say that, I would have agreeded.

But I think the times are changing and so am I.

Listening to the Federal Treasury Secretary discuss the Economic Stimulus Plan (you know, the one were each taxpaper will receive a rebate.)I was reminded of what would happen in a war.

If a soldier is shot, the combat medic slaps an ace bandage on the wound and the soldier is trasported behind the lines to the medical station that can best address the injury.

I think the government is slaping an ace bandage on the wound, and It just may be my eyesight, but I don't see any stations behind the battle lines.

911 happened, and we are still at war. When was the last time we won a war, wasn't it WW11.
Katrina, and we are still cleaning up, big problems taking care of our own.
Oil addiction, can't control it. 5 years ago $22.00 a barrell, now $100.00 a barrell.
Very big Federal deficit, we can't pay down, and we are borrowing money from people who just a few years ago envied our economy.

Lets hope like the cowboys in the old movies would say. It's just a scratch, nothing to worry about, and lets hope this crisis is not the straw on the camels back.