The only time mortgage confusion was higher that it is right now is back when sub-prime mortgages were not known to be the cesspool that we now know them to be. The collapse of the world economy can, in broad strokes, be laid at the feet of three parties; the Federal Reserve, mortgage lenders, and American home buyers. Of these, the most dangerous and most responsible party, the Federal Reserve Bank, is also the malefactor fingered the least. I’ve been reading a lot about geld lenen met bkr in Dutch.
The Federal Reserve is the party most responsible for destroying the global economy. This private corporation, charged by Congress with managing our money supply, cannot be trusted. Did you see Jon Stewart hammer Jim Cramer, the host of CNBC’s Mad Money, on who did this? Well, the answer is, the Federal Reserve Bank did it. And they should pay. Congress must rescind the Bank’s charter and replace it with a central bank controlled by the Treasury Department.
Mortgage brokers tried selling a subprime mortgage to any prospect that had a pulse. Millions who trusted their financial advisors had no idea there money was getting tied up in mortgages to unqualified people.
When the FRB raised the ratio it flooded the market with more money, which went out in loans to unqualified buyers which were then bundled as the infamous ‘asset backed paper.’. Question: What is another word for a toxic asset? Answer: A liability. The government is effectively using your money to buy these liabilities named toxic assets.
Finally, the people who sit and tell CNN cameras that they didn’t know that they had an adjustable rate mortgage are simply too stupid to own a home. I know that’s harsh, but it is the truth. Does that sound pessimistic? Good, because if you are not pessimistic now, you are a fool.