Joan Adams' Story Is The Story Of Our Nation

You may or may not be in the situation Joan Adams finds herself. Many Americans have not even had the chance to own a house. Yet just as Joan was taken advantage by the banking industry, all of us are being used to cover the damage caused by the widespread greed in the financial sector. Hundreds of billions have been given to these banks, yet when Obama wants to give a fraction of what they got to homeowners, they cry bloody murder.

Hypocritical Money Quote Of The Day, Brought To You By JP Morgan Chase

This is one of those moments where you laugh out loud or start ripping your hair out. When it comes to money management and Wall Street, chances are someone talking about it these days is setting up a joke, not for actually trusting your money to the crooks that dwell below Chambers St. So when JP Morgan Chase's Jamie Dimon opened his mouth to lend his "expertise" concerning Obama's homeowner plan, I wasn't sure whether to chuckle at the joke or kick him in the face for his sincerity.

From The Huffington Post:

"I don't think just because someone's underwater they say I don't have to stay there. But they're supposed to pay the mortgage, and we should teach the American people, you're supposed to meet your obligations, not run from them. Because you have a mortgage doesn't mean you should run away as it goes down."

Click here for the video.

Oh yeah, this is the same guy that took $25 billion in TARP money for his company that had mismanaged their own funds and helped contribute to the economic meltdown we've been experiencing. Dimon is in charge of a failed lending enterprise that made risky bets with no regard to their fiscal solvency and that of their many clients. He is one of the absolute last people to talk about fiscal discipline of any sort.

Palin Was Clueless On Protecting Homeowners

Last night in the middle of the debate, Gwen Ifill asked Palin about her running mate's support of allowing bankruptcy judges to rewrite mortgage payments on people's first homes. Biden called out McCain's opposition to helping homeowners (particularly those unlike him that only own one house). Palin didn't want her side to come off as mean and uncaring of the millions who are threatened by foreclosure on their homes so she quickly lied and ran away from the question.

From ABC News:

Sarah Palin got her facts wrong in Thursday's debate with Joe Biden when discussing where John McCain stands on new protections for homeowners facing foreclosures.

The Alaska governor incorrectly made it sound like McCain supports giving bankruptcy judges the power to rewrite mortgage payment terms on first homes.

He doesn't.

Joe Biden did what he did best in the debate and went after John McCain and his failed policies. His adversary across the stage clearly showed that she was way out of her league when it came time to defend her man McCain:

"[W]e should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe," said Biden. "That would keep people in their homes, actually help banks by keeping it from going under.

"But John McCain, as I understand it," he continued, "I'm not sure of this, but I believe John McCain and the governor don't support that. There are ways to help people now. And there -- ways that we're offering are not being supported by -- by the Bush administration nor do I believe by John McCain and Governor Palin."

"Governor Palin, is that so?" asked PBS' Gwen Ifill.

"That is not so," said Palin, "but because that's just a quick answer."

Sarah was pretty good at running from questions she didn't have a clue on and if there's something to give her credit for, it was this. Meanwhile back in reality, homeowners with plummeting home values that can't afford their mortgage payments have nowhere to go, that is until they lose their home to foreclosure and the banks are given a free pass and a $700,000,000,000.00 check.

Another Way To Support The Troops: 4x The Nat'l Foreclosure Rate

I've said it before and I'll say it again, putting a magnetic bumper sticker made in China saying you support the troops is NOT supporting the troops. Ultimately we show true solidarity by electing leaders that will only put soldiers in harm's way if it is truly necessary and when so, to take care of them and their families. George Bush has not lived up to that, and he has shown us in his true cold-blooded spirit. He can take all the moments of silence he wants, but it does nothing for the livelihoods of those that don the uniform. It is terrible to continue to have to hear examples of how our troops are suffering in the current economic climate.

From Bloomberg:

In the midst of the worst surge in mortgage defaults in seven decades, foreclosures in U.S. towns where soldiers live are increasing at a pace almost four times the national average, according to data compiled by research firm RealtyTrac Inc. in Irvine, California. As military families like the VerSteeghs signed up for the initial lower rates and easier terms of subprime mortgages, the number of people taking out Veterans Administration loans fell to the lowest in at least 12 years.

``We've never faced a situation like this, not in the Vietnam War, World War II, or the Korean War, where so many military are in danger of losing their homes,'' said Paul Sullivan, executive director of Veterans for Common Sense, a Washington-based advocacy group started in 2002 by Iraq and Afghanistan War veterans. ``No one asked them for their credit score when we asked them to fight for us.''

Military Foreclosures

Foreclosure filings in 10 towns and cities within 10 miles of military facilities, including Norfolk, Virginia, home of the Navy's largest base, rose by an average 217 percent from January through April from a year earlier. Nationally, the rate was 59 percent in the same period, according to RealtyTrac, which tallies bank seizures, auctions and default notices.

With the billions trillions we have and are going to spend on this war, you would think that a few spare nickels could be shaved off of Halliburton's expense account to help the military families that must cope with losing their homes. With George Bush as President, you'd be wrong.

Media Fails To Show McCain's Half-Hearted Attempt At Helping Homeowners

When John McCain came to Brooklyn this week he made it seem like he had a change of heart for homeowners who are facing foreclosure because of the subprime mortgage meltdown occurring in America. Last month he said it wasn't the government's job to do anything for the people who acted irresponsibly (something to do with the campaign perhaps?). Now he's changed his tune thanks to pressure from both sides of the aisle (including popular Florida Governor Crist, who's also a supporter of McBush). Yet reality is a little far off from how the media tries to portray him.

From TPM Cafe:

[I]t's typical Republican bamboozlement. McCain says that perhaps a few hundred thousand homeowners deserve ever so slightly more help than they're already receiving, but that millions of others should lose their homes. And it's worth pointing out that most analysts agree that the number of folks who would be helped by this plan is probably much smaller than Holtz-Eakin estimates. There's really not much difference between his initial position and his bold new plan - they both amount to inaction.

So I'd suggest that right after they note that "John McCain says he'd be happy to see our troops in Iraq for another hundred years," the Democrats would do well to add, "John McCain says that millions of Americans deserve to lose their homes." All it's going to take to beat this guy is telling the public where he stands.

It is all smoke and mirrors when it comes to the supposed straight talker. Maybe he's such a maverick because he can fool so many in the media into playing along for him while spitting on the truth in the process. Therefore it is up to the rest of us to get the facts out while many in the media sit on their asses and eat McCain's BBQ.

Subprime Mortgage Crisis Will Have Dramatic Effect On NYC

In what is shaping up to be the largest fiscal crisis of the new millennium and even worse than the S & L Loan scandal in the early 90s, the sub-prime mortgage crisis is going to hurt our economy on a large scale. New York City is also expected to be walloped by the situation. Overall, the city is looking at over 15,000 foreclosures and now some in the Senate are looking to act.

From The Daily News:

Schumer called for federal action against the lending practices of "really slimy mortgage brokers," which were detailed last Sunday in a special Daily News "I-Team" report.

In a 32-page study, the committee said that nationwide foreclosures were looming on 2 million homes with subprime mortgages, which are granted to borrowers whose credit histories don't rate a conventional mortgage.

The foreclosures and the spinoff effects will cost states more than $103 billion in lost property values - $9.5 billion for New York - and more than $917million in lost property taxes - more than $102 million for New York.

In the city, the borough hit hardest by the subprime crisis was Queens, where foreclosures were started on 2,478 homes through this year and another 3,561 were expected next year for a total of 6,039, the committee report said.

This national crisis will affect millions and because of the impact on the economy, everyone will eventually suffer the consequences. Why the problem was not looked into while the lending was taking place is something that should also be investigated. Of course, the Congress did not conduct any type of oversight while the Republicans were in control, whether it was regarding Iraq or our economy.

It might have been a matter of ignorance, but the fact remains that our government did nothing to stop massive predatory lending practices while interest rates were low a few years back because those mortgages being set up boosted economic figures. That economic "growth" was used by the Bush Administration to show that the economy was strong even though it was all an illusion.

And now we are going to have to pay for that mistake, as we are paying for all of Bush's mistakes.

Spitzer To Get Tough On Predatory Lenders

Frankly, this is a problem that should have been fixed long before Spitzer took office. It wasn't hard to see that sub-prime lenders were going to swoop into low-income areas and take advantage of low interest rates and unsuspecting borrowers. At least our new Governor is going to do something about the terrible practice of predatory lending.

From Crain's New York Business:

New York state Gov. Eliot Spitzer on Friday announced an interagency task force aimed at combating predatory lending practices throughout the state.

The task force -- Halt Abusive Lending Transactions -- is designed to help the public handle questionable lending practices in the subprime market, and to make it easier for low-income families to buy new homes.

"Lending practices that prey upon the public cannot and will not be tolerated," Mr. Spitzer said in a statement. "This task force will take a comprehensive look at the sub-prime lending industry, and recommend steps to protect borrowers, particularly minorities and the elderly.

The city alone is facing 15,000 foreclosures, ruining many families that were tricked into what they thought was a low interest loan. Now as payments soar higher and higher, people cannot afford to live in their homes anymore. Hopefully the Governor and AG Cuomo can do something about this escalating problem.

Boom And Bust In The Housing Market

For a few years many people were enticed by low mortgage rates offered by an insurance industry that suckered people into a bad situation. Senator Chuck Schumer released a report on the upcoming spike of foreclosures that is going to hit his hometown burrough of Brooklyn especially hard. The lenders that offered homeowners what looked like a good deal is going to leave thousands homeless.

From The Bayridge Courier:

The most popular “affordable” subprime loans are adjustable rate mortgages that offer an initial fixed rate that is set low.

But the rate resets after an initial fixed rate period to a more onerous rate that leads to a significantly higher mortgage payment that low-income borrowers will have difficulty affording, Schumer said.

Schumer’s analysis showed that in the next two years, 91,000 families will be at risk of foreclosure because of these lending practices. In the New York Metropolitan area alone, an estimated 53,000 families will see their mortgages reset to onerous rates, he said.

“The bottom line here is that the subprime bust is leading us right into a foreclosure boom, and thousands of Brooklyn residents will be left in the lurch,” Schumer said.

I think it is great that Senator Schumer is finally highlighting this serious issue that leaves thousands homeless from predatory lenders. My question is why did it take so long? Schumer is no stranger to the world of finance, thats for sure. The article also interviewed experts around New York on this and they have the same question.

Oda Friedheim, a staff attorney with the Legal Aid Society said the issue is nothing new.

“Too bad it took Wall Street’s pain to put the problem on the spotlight,” she said. “They have a bellyache because they swallowed too many bad loans,” she said.

“Our clients have been suffering for years under these abusive mortgages,” she added.

Deyanira Del Rio, the associate director of the Manhattan-based Neighborhood Economic Development Advocacy Project has been tracking mortgage lending and foreclosure data for the past seven years.

“What we have seen is that consistently higher priced mortgage loans are overwhelmingly concentrated in neighborhoods that are overwhelmingly black and Latino,” she said, noting her group will soon release a study showing this trend.

So why the outrage now Senator? It is unfortunate that it has to come to this to help out people that have been targeted for financial exploitation. Hopefully his intentions are genuine and meant to help those in need and not the Wall Street crowd.