Thursday, October 9, 2008

How we got into this mess

It has come to my attention that it is important to take all legitimate information into consideration. It is important too to know when that information IS legitimate.

When I have said in the past that I will not listen to some or other information it is because I have deemed it illegitimate. That information is incorrect, based on faulty thinking, formulated to be self-serving or just plain a fabrication.

In this election I have seen from the Republican side out right lie. Not just small ones but ones that are designed to discredit in the minds of those who do not follow politics. This means most of us. They are designed to obscure, distract or even demean in order to prop up an otherwise unsound position. This unsound position is the philosophy that says that the market will correct itself is just not true. This economy was destroyed by greed. Greed was supported by denying that greed existed and that there needed to be no oversight, no regulation or rules because people are basically Good. The Republicans let the dogs out!!!

People are good/right/acceptable when they know what good/right/acceptable is!

An example: If you know you are giving people things they can not pay for it is not good/right/acceptable to give them a loan and let them deal with loosing everything . It is just not right! It is not good for business! It is not good for the country!

The subprime situation is a perfect example.
1. If it is legal we will do it. No laws means anything goes!
2. If we will not have to deal with the consequences we don’t have to worry about them.
3. If we can convince someone who doesn’t know any better to do something it is their fault for believing us rather than our fault for knowing better and not helping them to understand. (Let the buyer beware!)

The trouble with this is that when so many “Good” people think that something, that is really wrong, is ok the whole country suffers!

1. Getting older people to refinance into these subprime loans then foreclosing on them when the arm of the payment doubled
1. Putting families into homes that were too expensive for their income then foreclosing on them
3. Giving families that should be renting loans that they can’t afford in the first place then jacking up the payments so they loose the home you convinced them they could have etc…

As well as…

1. selling the loan to a lender
2. Having that lender sell that loan along with others in a bundle to a investment structure
3. Having them sell it to a retirement fund…
4. Not one of them knowing that the bad loan had been made… OH MY GOD!

Then let’s add the hundreds of sudo-educators that have held seminars in Real Estate investment, foreclosure, short selling, flipping etc... Thousands have attended these seminars, believed the sales pitch, and gone on to be some of the ones that got us into this mess!

I myself attended a conference with 5000 people in SF CA. We were taught to cheat the American Public as an ethical practice. It was amazing…35 “teachers”, (Famous people!) selling their ideas of making money through real estate investment on CD’s and in manuals. No oversight of the material, no classroom participation, no testing to see if the participants could really do it, no accountability for what their students were doing!

How many of those attendees went right out and dabbled in real estate. How many of those folks are the very ones that got innocent folks into this mess?

The philosophy of the Republican Party is WRONG. Their idea of no rules, regulations and government staying out of businesses' way is wrong. Their ideals, platform, and willingness to lie is WRONG.

Not listening to them is the least of what I should do.

1 comment:

by Val said...

I have a problem with the idea that this is only the republican party. You said yourself that you were involved in one of these seminars. A intellegent democrat. It stands to reason that both political parties could be invloved in all this prime loan junk. In fact, they are.

It is true that certian stereotypes have a basis in reality. Cops have a tendency to be controling and become jaded. But not all cops are like that. I could quote a million other ideas like that.

I agree that the downfall of the prime loan situation was greed and bad education. But I also see that greed crosses many barriers and although I am not, myself, fond of many politcal ideals of the republican party... I don't blame them for the greed of others.

The people beind duped into this stuff are greedy too... lets not forget that. More house for their buck. Wanting mantions on postage stamps, made to order, custom esp for them. It is greed all the way around. Not politics. Unfortunetly. Becuase there is no term on greed. We can not wait 4 years and have the main part of the canker taken out of the problem. We actally have to fall. And fall hard we have.

Love you!