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Tuesday, July 24, 2007

Bush-O-Nomics Busted

Picture courtesy of The White House

It isn’t a huge surprise to me that the current trend in home foreclosures is happening given the fact that the lending industry has been left to its own unregulated ways. While President Bush and his crew are waving shiney objects to hide everything they are doing illegally the lending industry is following the same path.

Our nations lending system is broken and it is their own damn fault. Now it is all of our problem as the foreclosure rates go super nova. Welcome back to the Savings and Loan problems of the Reagan era.

I’m not surprised that this dilemma is happening now and neither should the Bush administration. While he has focused most of his limited attention capabilities on the wars in Iraq and Afghanistan the kids are playing at home and ruining the company store. While the lending industry is loaning out the money as fast as the closing points will rack up the President and his hands off policy has played out. Does it make sense to anyone that you can pay an interest only loan for the first five or ten years and then it jumps up to out of your budget world? Busted!

Over at the LA Times they have this incredible story on homeowners in California being foreclosed in triple digit percentages…

Home foreclosures hit record in California

Riverside County at a new high. In addition, there's a year's supply of houses on the market in Riverside and San Bernardino counties, up from a three-week supply at the height of the boom.

By David Streitfeld, Times Staff Writer11:23 AM PDT, July 24, 2007

A sagging real estate market and tighter lending standards are exacting a rapidly growing toll on Californians, forcing them from their homes in record numbers, figures released today show.

Foreclosures in the state during the second quarter totaled 17,408, up 799% from the same period last year. The current rate handily eclipsed the previous foreclosure peak set in 1996, when the state was in the final throes of six-year slump.

The two eras are sharply different.Back then, the primary culprit was massive defense cutbacks that led to high unemployment. Without a paycheck, people couldn't pay the mortgage.This time, the economy is generally sound but many people have become trapped in loans that are resetting to rates that exceed their ability to pay. Those excesses need time to make their way through the system. - Los Angeles Times

Now will come the wave of former homeowners that realistically never qualified for home loans and yet one lending institution after another collected the profits from writing the loans. Those poorly written loans were sold to the highest bidder and guess who is the highest bidder? Yup, our good government providing the cash for all these corrupt lenders. Soon the government will have to bail out the lending industry for stealing from the people and the Bush circle of home finance is complete. More of your money will go into the Bush funnel of friends to pay the people that actually created the American foreclosure scandal.

Just like we are not getting screwed over at the gas pump, you as the former home owner are not really losing your home. It was just a temporary rental agreement courtesy of just another industry where big money protects big money and you end up homeless. American Tax payers will bail out the lenders but you are ultimately screwed. Thanks W!


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