We Know Congress ‘Broke' the Housing Industry, so why do we think they can fix it?

We Know Congress ‘Broke' the Housing Industry, so why do we think they can fix it?

Those of us that have been in the real estate industry for years understand that Lenders did not ‘just decide to start making risky loans". They were encouraged by the backing of the full weight and power of the Federal Government who backed these loans and purchased them on the secondary market through Fannie Mae and Freddie Mac. As we found out, they were not only encouraged but coerced into making risky loans to further the agenda of Congress and Congress was involved every step of the way. AIG was encouraged to insure these loans because the loans were risky and did not have the ‘old fashioned' down payment or qualifications that loans had in previous years.

Of course, many people that were not in the real estate industry would never have known how risky these loans were. They never knew how much the mortgage backed securities had changed - but we did! It was our business.

Fix Capitalism with Socialism?: Now to fix the problem that Congress created - they have voted to "Save Us" and our economy by taking us down the road to Socialism. We did not ask them to do this - they decided that this was the best way to go - our only other option was to ‘Stand by and Do Nothing". I can think of a few other options that do not destroy our economic system.

Outrage: As the Fix is implemented and over a TRILLION dollars are given to private industry, Congress becomes ‘Enraged' that someone slipped something into the Recovery Act that they did not see coming. That is because they did not take time to Read, Discuss or review the TRILLION dollar Recovery Act and now they are surprised by the very things they voted for! It only serves to attract attention to the fact that they did not read the Bill before they voted it into law.

Law of Contracts: So that brings us to the ‘need' for Congress to tamper with the Law of Contracts to fix the problem that enrages them in the Recovery Act that they voted for. As real estate agents and any other business person in America - we must protest - do not weaken Contract Law. That is how we get paid for our services. Our Trust in the strength of contracts makes the American Society and Economy strong. When Congress (the House so far) votes for these punitive actions, that makes them feel better - but it makes the rest of us (including the rest of the world) leery and concerned about investing in America. We are changing the very ‘basic foundation' of our law.

Ruled by Laws; not by Men: The Rule of Law is the very thing that makes us a Republic. We are not a Democracy ruled by the whims of men and the mob. The Founding Fathers created a Republic. Our Congress is making decisions today that are changing the Foundation of our government.

It's UnConstitutional: The Congress felt they had discovered a legal way around the Constitution, so that they could retroactively punish those very people that they had just paid bonuses to. It is against the Constitution for Congress to single out an individual or a group of individuals for different treatment. So does that mean they want to tax everyone's bonuses like the ones we get when we sell a difficult house, or does it mean they are willing to go against the Constitution? Just because they are outraged that they voted for the bonuses - either way - that is not what we want.

Nationalized Banks: Now it is important to understand that when Bernanke and others say we have not nationalized our banks - the definition they use is: 100% ownership of the bank by the government. Since we are only at 80% it is not nationalized. Sweden has begun to criticize us for our actions in ‘bailing out/buying Banks'. Once again we want to turn the economy around, but we behave in a way that the rest of the world sees as risky and ‘UnAmerican'.

Printing Money: The Federal Reserve, which is an arm of the world banking system (not the US government); has just authorized the printing of a TRILLION dollars. The implications of this are huge and very dire for our economy. China has reacted yesterday by declaring that we need a new world monetary system. The US dollar is too risky to be used and actions by the Fed and Congress have brought into question the soundness of our monetary system. This should also point out - that the things I have said here are understood by some very powerful people.

Our system of government is under Attack: Read our Founding Fathers, the real George Washington, Thomas Jefferson, the Declaration of Independence and the Constitution. http://www.nccs.net/freedom_defined/const.html

This way you can fully appreciate the unique form of government we enjoy. Before we allow others in Congress to destroy it in a few months time (because we are in a 'crisis'); you may want to get involved in this extraordinary time in the history of our Nation.

The Basis of our Economy is Under Attack: Congress does not understand Capitalism or Free Enterprise. They are Bureaucrats not Businessmen like us. Businesses are uniquely qualified to run Business and the economy. The economy is not designed to go straight up with never a glitch. There are business cycles (Ups and downs to the economy).  We do not want Treasury Secretary Gietner to be appointed the Financial Czar with complete power under the ‘Resolution Authority' - being pushed on us at this time. This was a main reason for the president's press conference last night.

Government can not save us or fix the problem. Let the leaders of industry work on each of their specific industries. Believe it or not, we real estate agents are working on our industry - every day with a single mindedness never seen in a bureaucracy.

It is not the fact that we are experiencing an economic down turn (and it may be a big one); it is how we react to these cycles that builds integrity and weakens or strengthens our economy. I think most of us have learned a valuable lesson and would do things a little differently in the future. We would make decisions to strengthen our economy.

We would not choose to become a Socialist country instead of Capitalist. We would not choose to weaken our Constitution or question the Rule of Laws, just because we are having an economic down turn. So why are we allowing our government to do this for us?

What are we going to do about it? Any suggestions?

http://www.youtube.com/watch?v=94lW6Y4tBXs click here to  get the perspective of our friends across the Pond.

Lynda Bennett, Maggie valley, NC