Comments on: Mortgage crises created by reckless borrowers http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/ Logic and common sense Wed, 18 Jan 2012 19:37:34 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Lala http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-20 Lala Sun, 08 Mar 2009 23:34:32 +0000 http://doseofclarity.com/?p=47#comment-20 Staring into the abyss always focuses the mind, which can help you avoid falling in. So let's take a look at the potential catastrophe that awaits us, once we survive our current crisis. At the dawn of the 21st century, the U.S. had $5.7 trillion in total debt. As we approach the end of George W. Bush's presidency only eight years later, that sum has nearly doubled, thanks to war costs, tax cuts, spending increases, expanded entitlement programs, and now a welter of government bailouts and rescues. Yet any such calculations are penny ante compared with the fiscal disaster that is bearing down on America. It's no longer an event in the misty future. It officially began earlier this year when teacher Kathleen Casey-Kirschling of Maryland became the first baby-boom retiree to collect Social Security benefits. She will be followed by about 78 million more boomers over the next 17 years. The entitlements due from Social Security and Medicare present us with that frightening abyss. The costs of these current programs, along with other health-care costs, could bankrupt our country. The abyss offers no assets, troubled or otherwise, to help us cross it. - David M. Walker. I found this article and wanted to share. Staring into the abyss always focuses the mind, which can help you avoid falling in. So let’s take a look at the potential catastrophe that awaits us, once we survive our current crisis. At the dawn of the 21st century, the U.S. had $5.7 trillion in total debt. As we approach the end of George W. Bush’s presidency only eight years later, that sum has nearly doubled, thanks to war costs, tax cuts, spending increases, expanded entitlement programs, and now a welter of government bailouts and rescues. Yet any such calculations are penny ante compared with the fiscal disaster that is bearing down on America. It’s no longer an event in the misty future. It officially began earlier this year when teacher Kathleen Casey-Kirschling of Maryland became the first baby-boom retiree to collect Social Security benefits. She will be followed by about 78 million more boomers over the next 17 years. The entitlements due from Social Security and Medicare present us with that frightening abyss. The costs of these current programs, along with other health-care costs, could bankrupt our country. The abyss offers no assets, troubled or otherwise, to help us cross it. – David M. Walker.

I found this article and wanted to share.

]]> By: No quitter http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-18 No quitter Sun, 08 Mar 2009 03:08:39 +0000 http://doseofclarity.com/?p=47#comment-18 Let's discuss a couple of things, I agree with what you are saying and am disappointed that we have become so politically correct that we could never have moral outrage because "it is all relative", I think that is BS. For any tree hugging, green liberal that may want to be tempted to jump in and discuss the people that were truly taken advantage, don't bother because I agree, and they are less then 2% of this discussion, sorry if dealing with facts makes you uncomfortable. Many bought what they could not afford: the average mortgage in the country is 2.5 times annual earnings, Cal is 6 to 1, do the math, that does not work. Pay Option ARMS were originally designed for relocating executives who had to verify relocation assistance, reserves, savings ability and about 7% of them ever used the neg am option vs over 80% of the CW portfolio. The product was missed used and justified because it could be "sold" rather then any thought that it would "perform". Rich Dad poor Dad / Carlton Sheets (buy a house with no money down); most of this started with the crash of the stock market in late 2001. So don't think all borrowers were broke and uneducated, many were very educated trying to win the lottery. Politicians were too busy celebrating the amount of home ownership to care about anything else, no stood up and said "are you kidding me?" when New Century caeme out on an earnings call and said "if they stressed the second lien deal they issued they could maybe see 5% loss". BS, if you know anything about the performance of those loans. Lastly, pricing, no one was charging a high enough rate to support the credits (excess coupon cash flows), thank you Rolland and the rest of us for not letting you go down alone. Let’s discuss a couple of things, I agree with what you are saying and am disappointed that we have become so politically correct that we could never have moral outrage because “it is all relative”, I think that is BS. For any tree hugging, green liberal that may want to be tempted to jump in and discuss the people that were truly taken advantage, don’t bother because I agree, and they are less then 2% of this discussion, sorry if dealing with facts makes you uncomfortable.
Many bought what they could not afford: the average mortgage in the country is 2.5 times annual earnings, Cal is 6 to 1, do the math, that does not work. Pay Option ARMS were originally designed for relocating executives who had to verify relocation assistance, reserves, savings ability and about 7% of them ever used the neg am option vs over 80% of the CW portfolio. The product was missed used and justified because it could be “sold” rather then any thought that it would “perform”.
Rich Dad poor Dad / Carlton Sheets (buy a house with no money down); most of this started with the crash of the stock market in late 2001. So don’t think all borrowers were broke and uneducated, many were very educated trying to win the lottery.
Politicians were too busy celebrating the amount of home ownership to care about anything else, no stood up and said “are you kidding me?” when New Century caeme out on an earnings call and said “if they stressed the second lien deal they issued they could maybe see 5% loss”. BS, if you know anything about the performance of those loans.
Lastly, pricing, no one was charging a high enough rate to support the credits (excess coupon cash flows), thank you Rolland and the rest of us for not letting you go down alone.

]]> By: Paying my mortgage http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-14 Paying my mortgage Fri, 06 Mar 2009 22:24:30 +0000 http://doseofclarity.com/?p=47#comment-14 Bravo! There should be more focus on the shady borrowers in the media's coverage of the mortgage crisis. Mortgage fraud is a federal crime, but until the fraudulent borrowers are held accountable, I'm afraid the deception will continue. Bravo! There should be more focus on the shady borrowers in the media’s coverage of the mortgage crisis. Mortgage fraud is a federal crime, but until the fraudulent borrowers are held accountable, I’m afraid the deception will continue.

]]> By: Phil Baldasarro http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-12 Phil Baldasarro Fri, 06 Mar 2009 16:48:29 +0000 http://doseofclarity.com/?p=47#comment-12 Yes 100% simply and totally 100% but what can we do about it? Yes 100% simply and totally 100% but what can we do about it?

]]> By: Kublia Khan http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-11 Kublia Khan Fri, 06 Mar 2009 16:40:15 +0000 http://doseofclarity.com/?p=47#comment-11 "What should happen to the deceptive irresponsible borrowers that demanded the same for their own gain?" Common sense says that they should be punished or at least suffer the consequences of their actions. Instead, what is happening is that they are being rewarded by not having to pay what they owe! Who in there right mind would run after a shoplifter and stuff more money in their pocket???? I have a solution,…… let’s just transfer money from the majority of people who make it and pay the debts of those who irresponsibly, recklessly or fraudulently took money from those mean bad banks! “What should happen to the deceptive irresponsible borrowers that demanded the same for their own gain?” Common sense says that they should be punished or at least suffer the consequences of their actions. Instead, what is happening is that they are being rewarded by not having to pay what they owe! Who in there right mind would run after a shoplifter and stuff more money in their pocket???? I have a solution,…… let’s just transfer money from the majority of people who make it and pay the debts of those who irresponsibly, recklessly or fraudulently took money from those mean bad banks!

]]> By: Lala http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-8 Lala Fri, 06 Mar 2009 04:19:02 +0000 http://doseofclarity.com/?p=47#comment-8 I am with you! I agree with you totally. I am with you! I agree with you totally.

]]> By: distressed_conservative http://doseofclarity.com/mortgage/mortgage-crises-created-by-reckless-borrowers/comment-page-1/#comment-6 distressed_conservative Fri, 06 Mar 2009 03:34:11 +0000 http://doseofclarity.com/?p=47#comment-6 AMEN! AMEN!

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