I think it was Charles Krauthammer who said "I began to sense we were in trouble when my barber was bragging about buying her fourth investment property with no money down."
It was Barney Frank and his ilk who took us down the path of no return when they decided that we needed to make home ownership available to all. When the po' folks couldn't meet the underwriting standards, underwriters did the only thing they could- first loosened the standards, and when that didn't work, did away with them entirely, giving rise to the "liar" loans (also referred to as NINJA loans- "No income, no job or assets").
The investigation of this mess is actually pretty easy- you grab the loan applications (prepared by the loan officer after interviewing the borrower), look under "Miscellaneous income", and ask the borrower about it. His response will be "I have no idea how that got in there- I sure didn't do it." Loan officer simply put in the income number needed to make the loan work. "Gee- what could possibly go wrong" with that program?
You can't really fault Wall Street for what came next- they "creatively" packaged the loans so they would sell (after all, they were just helping the gumment move in the "new direction" of universal home ownership). Did get a little dicey, though, when they started short selling the packages (ie, betting they would fail).
But shouldn't it be the job of the guvment to police these things? It was the gumment that threw down the gauntlet and allowed all this foolishness in the first place- can't really blame Wall Street (the last bastion of pure capitalism) if they went along with the program (and figured out a way to make money from it).
Wouldn't break my heart if we were to hear that dear ole Barney had met his unfortunate demise as a result of drowning in his own spittle. . .
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Show Coverage: Central Illinois Strawberry Festival - by Cindy Ladage and Janna Seiz. Every year the coming of summer is highlighted by different events for different people. For some, it is heralded with the end of school, tilling the garden, or completion of the planting season. To us, connoisseurs of find food, antique tractors, farm toys, crafts, and downright fun, the annual Strawberry Festival means summer is here. Every year, in Carlinville, Illinois, the Macoupin County Historical Society and the Macoupin Agricultural Antique Association team up to fill th
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.