Here we go again;
Lately, I’m getting all kinds of hatemail from folks who think I’m “fearmongering” as I help families build ISBU homes.
If you read my blogs, you know that I AM one of those people who see hard times coming for Americans.
However, it seems some of my readers actually believe that Obama is curing the nation’s ills and that housing is rebounding, “with bargains galore in a buyers market.”
So, I counter with;
- “So… what do all these bargain hunters use to PAY for that property?
- Where do they get the loans?
- How do they save money to buy this property as the economy is slowly hemorrhaging?
- Has housing REALLY even hit “the bottom”?
- Or… has the recent bout of “foreclosure slow-downs” just suspended the market, until they all start slamming us at the same time, on a date to be named later?
- Are they among the lucky percentage of Americans that work for companies that aren’t “right-sizing” and outsourcing jobs to Malaysia and India?
- Do they still have job security?
- Does anyone?
Like many others, I do see (mark my words) a combination of some sort of massive bailouts as well as legislation to give blanket immunity to this rather large slice of the financial industry.
I’m going to quote something I just read in another forum I participate/lurk in (because it parallels exactly my own feelings), written by a guy just like us… a simple guy named Tony who lives within his means in Louisiana. He’s a “down-to-earth guy”, with “down to earth brains”.
And, he uses them.
“Hold on to your seats because this is going to be rammed down our throats – we are about to be re-TARPED.
The jokers who compromise the ruling class will never hold the Big Money Boys to the same standards as the great unwashed (you and me).
The main argument against some sort of mass investigation or the Federal Reserve referring to the Justice Department is that the economy would take a huge hit. This is an admission that we are now unofficially a foreclosure based economy. It is an admission that justice (small “j”) takes a back seat to preserving the caste system.
Unless there is some sort of legislation or Federal Foreclosure Insurance (like flood or crop insurance), land that has never been foreclosed upon will have a premium price. Structures on land with even the slightest stink of unclear title will be left to rot.
This is what you get when you bail out criminals and do not force the shareholders of their corporations to take the hit they deserve.“
From the Washington Post, October 13, 2010
Lack of proper mortgage paper trail could leave big banks reeling again
“The federal government’s pressure on lenders Wednesday to fix the paperwork problems plaguing foreclosures left unaddressed a far greater potential threat facing the financial system and the U.S. economy.
Beyond sloppy documents, the foreclosure debacle has exposed one of Wall Street’s little-known practices: For more than a decade, big lenders sold millions of mortgages around the globe at lightning speed without properly transferring the physical documents that prove who legally owned the loans.
Now, some of the pension systems, hedge funds and other investors that took big losses on the loans are seeking to use this flaw to force banks to compensate them or even invalidate the mortgage trades themselves.
Their collective actions, if successful, could blow a hole through the balance sheets of big banks and raise fundamental questions about the financial system, financial analysts and a lawmaker said.”
So, at the risk of “fearmongering”, I ask you;
We’re already buried by debt that our grandchildren won’t be able to repay. How deep can the hole get, before the sides cave in? Hmmm?
That affordable, sustainable rural home built of Corten Steel is looking better and better all the time.
“Insulation Drama” is next… TED.