RealTown's RealTalk

Here is a great article about how the mortgage mess was created back in 1997. Before the election, many of our more liberal talkers were hell bent to blame GW. There is no denying that the Bush Whitehouse did not take control of the situation but this Village Voice article puts the blame squarely on Andrew Cuomo and the Clinton Whitehouse.

It is a great read www.villagevoice.com/content/printVersion/541234

Lou Frey

Qualifying Broker

Santa Fe Land and Homes

505-670-5001

lafrey@msn.com

www.sfhomesandland.com

www.casaofsantafe.com

Lou, was this a newsflash for you?
I've heard so many variations on this in the past year... everyone wants to blame Bill....
I don't give a **** what happened 10 years ago....
If you take over a company.... you'd better be able to correct what is wrong with that company, or you will take the heat.

I STILL reject the notion that these were all low income or low credit loans.... many middle class and some high-end loans defaulted.

I think this happened because the banks were in most cases, TOO QUICK to foreclose. They wouldn't work with the owners (that lost their jobs or windowed or whatever), and in 60 days exercised the foreclosure. They've kept so many REOs on the market for the past year, that nothing else hardly sells (yes, a few exceptions), and then the others go into foreclosure too.

We all know how difficult those ShortSales are.... well imagine how crappy they are to an owner that just needs to put a few payments on the end, or whatever.... they always think the bank is going to work with them (like the BPOs I do), but then the bank doesn't return their calls, and next thing you know they are being served.

The banks have created this avalanche of REOs, and are continuing to do more of the same.

I care about "now"..... not what happened 10yrs ago..... will the bail-out stem the tide, as more and more REOs hit the market? Doubtful.... certainly no sign of it yet.

And these REOs are great bargains.... I can't imagine buying a resale when there are so many REOs to choose from.... so for anyone else, the market is strangling.

Lindy in Houston 

Here is a great article about how the mortgage mess was created back in
1997. Before the election, many of our more liberal talkers were hell bent
to blame GW. There is no denying that the Bush Whitehouse did not take
control of the situation but this Village Voice article puts the blame
squarely on Andrew Cuomo and the Clinton Whitehouse.
It is a great read www.villagevoice.com/content/printVersion/541234
Lou Frey

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Seems that the regulators at the time were not industry sponsored folks, so
there were more watchdogs on duty under Clinton... that changed, and with
it, the entire economy...

Have a great day!

Best regards,

Paul Silver
Focus Professionals, Inc.

Paul is under the assumption, that the Clinton Administration "regulators" were NOT being watched over by the "WATCHDOGS:.  Or are you saying that the WATCHDOGS were overlooking the 'REGULATORS?  (Typical Quasi-Government Operation not knowing the left from the right)!  Being all this got started under Clinton and continued through Bush, then who is to blame for this MESS?  I read the lengthy article and I appreciate Lou Freys link!  Regardless of how you look at it, it appears that everybody was asleep at the switch since the 90s.  The Regulators, the Watchdogs, Wall Street even Main Street not to leave out DC and our typical leadership we can expect.  I'd say both sides have been playing we the people for the fools that we make ourselves out to be.  So who do we suppose the REAL winners will be, once this all WASHES OUT?  GOVERNMENT BY THE GOVERNMENT FOR THE GOVERNED?  According to Obama's choices for leadership it appears to be the Same Old Usual Suspects.  So tell us Paul how do propose "hope for change", if all we are getting is the same old change agents in charge or the same old quasi-government agencies?  Looks like there's a lot of blame to pass around from Mortgage Backed Securities Market to End Users Market.  An guess who's going to pick up the TAB?  THE END USERS, the people of the Future.  Isn't that how the New Deal  and Great Society planned it all along?   Let the kids of the future pay for yesterdays blunders.  The only thing we can bank on is our Grand Childrens Future Tax Contributions to pay for all the Misery of Yesterdays Poor choices.  What ever happend to Higher Education?  I think it got High Jacked between the Contitution of the United States and a bunch of Real Smart 5th Graders with College Degrees.

Robert wrote, in part: Paul is under the assumption, that the Clinton
Administration "regulators" were NOT being watched over by the "WATCHDOGS:.
Or are you saying that the WATCHDOGS were overlooking the 'REGULATORS?
(Typical Quasi-Government Operation not knowing the left from the right)!

---

No, actually, as usual your analysis of what I said has nothing to do with
what I actually said.

Neither of your points is what I was saying... I make no distinction between
Watchdogs and Regulators in my comment.

I was saying that the watchdogs WERE industry people in the Bush
Administration, and these folks took the deregulation a world further than
it was under the Clinton Administration... which only loosened loan criteria
for Fannie and Freddie... which ONLY handled 17% of the sub-prime loans
still to this day... the remaining sub-prime loans were made by deregulated
third party lenders, who achieved this capacity under Bush... an expanded
program of deregulation that resulted in the loan mess we see today...

Have a great day!

Best regards,

Paul Silver
Focus Professionals, Inc.