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Thread: Fraud Reported in Program to Help New Homebuyers

  1. #21
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    Re: Fraud Reported in Program to Help New Homebuyers

    Quote Originally Posted by Missouri Mule View Post
    This is what brought on the economic meltdown. The same crooks in Congress are bound and determined to finish the job. The FHA is now bankrupt. The FDIC is out of money. We own half a dozen companies as U.S. taxpayers. The Congress evidently cares not one whit about the pending bankruptcy of the United States. As far as I am concerned they are part of the criminal class.

    I asked my banker one time what happened. Her response simply was this. There are people who should never have been home owners in the first place. All of this do-gooder nonsense is what put us into the soup to begin with. People who can repay loans would not have brought this calamity upon us. After the deadbeats and crooks dipped their grubby fingers into the public purse we were doomed. It is just a matter of when. Moody's says we will be bankrupt as a nation in less than five years.
    MM - from what I understand the underlying driver of this mess was less "do gooder nonsense" and more "straight out disgusting corporate greed"
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  2. #22
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    Re: Fraud Reported in Program to Help New Homebuyers

    Quote Originally Posted by bowerbird View Post
    MM - from what I understand the underlying driver of this mess was less "do gooder nonsense" and more "straight out disgusting corporate greed"
    But the genesis of this was the changing of federal law and politics which wanted to move the underlying home ownership rate from about 65-66% up to closer to 70 or 75%. In so doing the standards were loosened and many people who had no business or intention or just plain speculators jumped in on this "easy money" train to reap the rewards of government intervention. No rational businessman or woman would lend money knowing that there was little or no chance of getting it back. You wouldn't. I wouldn't. Nobody does this. But once the government gets involved all kinds of unintended consequences happen. This is not new. It happens all the time in wars. War profiteers come along to put out inferior material at inflated prices. We had cannons manufactured during our civil war that blew up because they were made of inferior metal but the government was paying the freight so they got by with it. The crooks today who milked the housing system just flew under the radar and made off like bandits.

    Criminality moves in whenever there is money involved. When it is said that money is the root of all evil, believe it. It is still true.

    So my statement about the "do-gooder" legislation is still valid. If not for the loosened standards of the housing market we wouldn't have had the economic melt-down where crooks dreamed up the unfathomable "CDO's" to market around the world which turned out to be worthless based on hugely inflated home values. I used to sit in front of my television set and view "Flip this House" on HGTV where people would speculate on shacks in California for several hundred thousand dollars that I would have bulldozed. That easy money was there for the getting and many profited. And then the bubble burst and as Paul Harvey would have said, "Now you know the rest of the story."

    This is the iron law of unintended consequences. While the intent was good, the result was disaster.

    Greed will always be with us like the poor. You can't outlaw greed because it is the human condition.
    Last edited by Missouri Mule; 10-23-09 at 11:37 AM.
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