By: the consultant

the consultant — Fri, 28 Mar 2008 19:41:27 +0000

while we are talking about the presidency…I am just
watching the president addressing the mortgage crisis
with his operation hope which provides counseling etc
and you know, even though I know the president personally
voted for him twice..he really doesn;t seem to get
it..the crisis that the country faces is enormous
if there were no fdic we would be in a depression
with runs on banks like in 1932…there is only
one answer and it is not the one that the president
is giving…hope and counseling have nothing to do
with this…ajdustible mortgages that were little
understood by the borrowers of this nation are the
problem..do you realize that only 27% of the nation
has a high school diploma..yet the mortgage terms
speak of libor rates, and treasury bill, and adjustment
periods …those borrowers were and are clueless.but
the lenders knew…they knew that a 3% mortgage with
a payment of 600 a month would nearly double in 3 years
and then double again if rates went up …
the problem needs to be solved and unfortunately hillary
is right..these adjustable mortgages have to be frozen
and reformed to allow people to keep their homes
banks don’t want the real estate…and we don’t want
people thrown out of their homes at least i don’t
because once that happens a whole new dynamic of economic
chaos follows…I won;t bore you with the details but
I have a degree in business and economics and it ain’t
pretty…so I view this presidents position as the
equivalent of doing nothing…just jawboning…and
its not enough…by a longshot….bring back bob
rubin..

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By: the consultant