Hi Jason,

We can all do our part by getting the info out there to those that need it. With as you say the proactive approach, things can actually improve measurably. Thanks for weighing in, your voice adds credence to the topic.

Good Morning Bill, Thanks for your comments. The problem with stated/stated is that too many people lied about it and will continue to do so. If the whole mess is falling apart based on the stated/stated that were false, why would having more stated/stated loans solve the problem? What is needed to be uncovered is if there is actual income any where near the stated income to support repayment. Verifiable assets have also been suspect but the income part or lack there of has created most of the problem.

There needs to be a better system in place that accounts for the self employed and alternative income streams. An example would be accepting stated income but there needs to be at least a two year history to support something at least close to what is being stated. The all or nothing approach of stated income doesn't seem to work as we see the outfall of all the abuse.

Wouldn't you think there would be a better way to do it. There is hope that this mess will get the financial geniuses to come up with a better system and the recognition of the normal aberrations in income streams.

Hi John, thanks for commenting. Hopefully we will see some help. We are going to need some new sources of funds with new guidelines included in the mix if we have any hope for a faster resolution. So many of the defaults were based on lies originally that is difficult to overcome with investors and consumers driven by greed. Since that won't ever change better guidelines that maybe fit somewhere in the middle of being to too tight or too loose. Hopefully they appear soon.

I would be glad to do that any time Bill. :-) Done that a few times in my life. But if the subject matter is good, it can be very stimulating.

Everyone is leaving for San Francisco today and tomorrow for the big Blogging get together. Should be great fun to hear about.

Hi Sharon, I sure am sorry I couldn't be there. How wonderful it would be just to meet you! But to be able to meet so many wonderful writers and build friendships, well, there just couldn't be anything better. Thanks for taking the time to read my post, in the spirit of trying always to see the hope in light as opposed to the failings in darkness, it is thrilling to be read by the best! You!

I really like your idea and it would be so great for all these many people if such an arrangement could be worked out. At least if they can't lock in that rate, they should extend it by at least 3 years and that would give many hope that if the market could be turned around and cut these foreclosures out, things could be made more normal and at some point down the road they could lock in to some sort of fixed arrangement or at least be better prepared for the loan they have.

Another extension of the idea would be put all those sub-prime mortgages into a lottery and with a min of 3 years, the more volatile ones could be in a drawing say ,1 out out of 5 ,for a lifetime arrangement of converting their current rate to be fixed as long as they own the home. That would inspire more hope and get all this negativity out of the market. Maybe I should run for Congress and propose it. the Banking industry would not think much of it, they at least would then have hope of better markets ahead. A good trade off.

Hello Michael, Than you for adding so much enhancement to this post. As a member of that advisory, You most certainly know better than many of us what can and can not be of benefit in assisting the market to seek a more normal level.

I can well understand your caution that the better of the products is just too expensive. I had written a post about a bill in Congress HR1852 and in that bill is the revision for the FHA program that will also help some.

The mess of the sub-prime market sprung out of greed. Greed from the brokerages and greed from the consumers. It is tough fix, for the essence is within what these people have in their heads as opposed to what was offered them. It is always a little disconcerting knowing how all these things happen and then many want to lay the blame on others so they don't have to take responsibility. There were others this time, innocents, that were thrown in the mix.

In our country we seem in so many ways to be losing our compass. There has to be so many on the fixing side for the abuse of and the greed by so many. We are actually training this sort of behavior and we will likely see more of it before something radical takes place that begins to curtail it.

It was for the innocents and not the greedy that I try and stay encouraged that some help is in place, more will be needed. But there will be a next time guaranteed, because we are teaching irresponsible behavior with bail outs and fixes, yet as humans with compassion, we also need to try and help the weaker and the innocents. It is a tough balance.

But what we are just as likely doing is trying to help ourselves as much as possible with improved markets. Just make it sound good that we all really care about the others. We live in strange times and what is sure to be the case, is that times will get even stranger.

Hi Jason, I love  your new word Teflonic. May I use it sometime? The Aunt and Uncle were sort of setup to be as you describe. Coach Steve, in his comments referring back to an article he wrote does seem to have an answer that if more could understood, it would resonate and actually be effective.

The solutions are coming in bits and pieces and not enough to make a significant impact as yet. I write in hopes that what is be done is at least seen as encouraging. I prefer the positive as opposed sometimes to the more realistic but negative impact all this bad news has had. I think we have allowed ourselves to be corralled and put into a maze. There is no clear way out but somehow we are made to feel better if we chase each others tail. I am reminded though that in chasing other tail, the view is not really changing,:-), Looks a bit different but is in fact tail, just like the others. The tail is connected in such a way, that unless one actually enjoys that, the view in effect of one more tail, is just like any other. 

Hi Lenn, You are so right. Along with all the abuse, there were some innocents through in to the mix. Sharon suggested maybe fixing the rate to the current level. I proposed, fixing the current rate on these adjusting loans for 3 additional years to get many of them trough this time and allow for some alternative adjusting down the road. Not to defer indefinitely but it might help. The hose is already out the barn. Building a stronger door will only help if we can catch the horse and put him back in there, lol.

So many do both things. Have the investors that made the gain, suffer most of the loss and then help the victims of the group. The guilty of the group should just forfeit. Hopefully then we woun't have another mess down the road.

I am also in favor of Congress setting the cost of mortgage purchase money to a fixed rate of 6.% for a 5 year period. That could be a Government sponsored buy down of the rates. Once we get all the mess contained , then we could go back to a free market. The reason for such drastic action would be to prevent the global economy from reeling from this mess while it is being fixed. 5 years seems like a long time but it will take every bit of that to fix this mess.

I think it was Friday the 27th? I have no idea how all this works. But i will say I was all but convinced I would never have a featured post again. Maybe some one is taking pity on me? It feels like II have to work twice as hard to keep up with the others. I sure am grateful though. I woke up this morning to the surprise of all these e-mails and it was like magic had happened in the night. No way to explain, I have no idea.

How are you? Are you going to San Francisco? Sure wish I was going. With any luck, I can go next year. By then maybe a new face will be welcome? LOL