Wednesday, September 05, 2007

The Problem With Unrestrained Capitalism

Problem, problem, where is the real mortgage problem?

Is the problem with the people who bought a larger home than they could afford?

Is the problem with real estate speculators that bought five or ten homes expecting to flip them at a higher price in just a few months?

Is the problem with lenders that loaned money to any person who was physically able to walk into their office and sign the forms?

Is the problem with trick, adjustable rate mortgages that go from 6% interest to 10% almost over night? Nice trick if you are a banker looking to make fast money off gullible people, huh? These mortgages are not so helpful to the home owner that sees their house payments balloon from $1,020 a month to $1,800 a month or more.
NYC 18560

Everyone has a different reason for the current sub-prime mortgage crisis.

The buyer should have known they could not afford those ballooning house payments.

If you read the fine print on page 35 of your mortgage you would have known the bank could raise the interest rate to any amount it needed to pay the banker's million-dollar salary.

Whatever made those investors think that home prices would keep going up and up, year after year? Crazy speculators, didn't they know all markets move in cycles?

What about those predatory lenders that loaned money without looking closely at the borrowers ability to pay? Were they right to encourage their brokers to keep writing mortgages no matter who walked in the door to their offices?

What about those bankers all over the world that bought entire portfolios of stinking, rotten house mortgages that will never be paid off?

The blame for the current crisis lays in many places but the people in high places, the really rich people, knew this was coming. They knew many poor homeowners would default on certain types of mortgages. Just like the characters in Upton Sinclair's novel, The Jungle, some sly moneylenders just figured that once one buyer missed a few payments they could turn around and paint the house and then sell it to another unsuspecting poor family.

That works fine until there are no more buyers in the market for a home.

Suck the money out of as many people as you can just so you can live in that huge palace by the lake. Who cares about the next person, this is the United States of America. It is every man for himself. The poor, stupid people are nothing more than cannon fodder for generals, lawyers and bankers.

Does anyone want a credit card? There's a great offer over at that bank across the street. They promise not to raise the annual interest rate and fees over 30%. Step right this way suckers, sign on the dotted line right there. That's right, here's your shiny new credit card. NEXT!!!

Look over here people! We have the lowest prices in town. In fact, we drove all the little mom and pop stores out of business and we are damn proud of that achievement. We even funded a university research project that decided we never harmed any small business owners, the same people that staff our cash registers even right now.

No more jobs left in your poor little town? Look over there, there's a new U.S. Army Recruiting office with plenty of great jobs in Iraq or Afghanistan or Africa. All you have to do is drive around until they blow you up or shoot you dead or maybe you get to home.

You want a living wage? Get lost buddy, there are five people behind you willing to work for eight bucks an hour with no health care benefits.

No money to pay for your children's health care? Who cares? Get out of my office, right now! I don't want my rich patients disturbed by the sight of you. Go die someplace else you poor sop, this is America. Pay up or die. How else can we pay the bosses back at the health care corporate office $25 million dollars a year? Certainly not by treating poor people like you.

Excuse me, I only do breast implants for rich ladies, you will need to go wait for hours in the inner city emergency room for that nasty skin problem. Not unless you want to pay my outrageous fees. Are you willing to sign up for a big loan for that treatment? OK, step right in my office.

Unrestrained capitalism. Greatest system in the world. Let's send our army to blow up those damn socialist countries that actually provide schools and health care for their poor people. How dare they give the common man an education and good health care. Next thing you know they'll want a living wage. Damn communists. Shoot 'em all!

No comments: