There's something I've been wondering about. I think I'm missing something, maybe you can help me understand. So let me ask you this:
If the Securities Industry created loan programs that weren't viable, for no other reason than greed. Mortgage companies made loans using thei guidelines. Investors bought these loans with anticipation of large profits. Why is the American Taxpayer having to pay the price for their actions.
Every day we hear how one lending institution or another is purchasing a large corporate jet or throwing a huge super bowl gala event and then the next day petitioning the government for more money, and get it.
I just don't get it. The Sub Prime loans caused havoc that will take many years to recover from. A large number of Borrowers who used these programs are loosing their homes to foreclosure. These foreclosures are driving the prices of other homes down. Many Americans are being forced to alter their retirement because they have lost the equity in their home. They were planning on using this equity to supplement their retirement.
Many working Americans have lost their safety net and are pulling back on spending in an attempt to weather this economic storm. Stores are doing less business and therefore laying off retail employees. Manufacturing is affected and closing its doors because of reduced consumer demand for all but the essentials. Car dealerships are closing because prospective car buyers can't get loans, even with good credit.
Real Estate loans are harder to get because the lenders are over compensating for the bad loans by making it harder for today's borrowers to qualify even though these loans are all full doc loans, and the banks have money. They borrowed it from us.
And yet the Executives are getting performance Bonuses and Retention payments for staying with the companies they helped run into the red with the sub prime loans. Yes, the investors are even paid dividends out of the Government bail out money.
Is it any wonder that the American consumer is not flocking to Real Estate at a time when the Housing Affordability Index is at an all time high. It comes down to faith in Government.
I'm starting to feel this is just a big game of pin the tail on the Donkey and the American Taxpayer is the Donkey, and the Bankers are the kids having a good old time.
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