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Tuesday, July 26, 2011

How the American dream became a nightmare (a continuance)

There was a time when owning a home was considered one of the most accomplished achievement a person could stick under their belt, and it continue to be a good investment (what else can you possess in todays market that will give you the same type of exuberance?) The investment nowadays (as it pertains to owning a home) is not what you have in a bank account but rather its in the serenity of mind. The unscrupulousness of derivative traders and others on Wall Street has caused much alarm in the housing market. The Gross Domestic Product (GDP) refers to the market value of all final goods and services produced within a country in a given period. For sometime now, this nation has not been producing very much, certainly not as it pertains to the goods that are made in America. It has been reported lately, the foreclosures of homes is the most single cause of "return to poverty" for a large number of this country population (most noticeable among the African - American population), that is not to suggest that other groups has not been affected severely. But when you are behind in the economic picture as it relates to all that goes with it, it is not hard to imagine how the "return to poverty" would not apply to the African - American community (AAC) in a most profound way. 
Congress allowed those on Wall Street (which include your largest banks) to play a game of "get all you can; anyway you can," the result has been nothing short of catastrophic for this country citizens and quite frankly, it has added to the depression and survivability of this nation.
A nation is only as great as its people are in harmony with the actuality of being cared for and at peace with the conditions and well being of its citizens. That is not the case with what I believe of the ninety-eight percent of this nation (United States) citizens.
Fannie Mae and Freddie Mac, two entities that are privately run ed  but has the backing of the U. S. government. Congress authorized Fannie Mae to purchase private mortgages  in 1970, i.e. those mortgages not ensured by the FHA, VA or FmHA, those mentioned, along with the Federal Home Loan Corporation (FHLMC) were the instruments used to put this country citizens into their "dream home". In 1999, Fannie Mae came under pressure from the Clinton Administration to expand mortgage loans to low and moderate income borrowers, even a blind person should have seen this having the potential of being a recipe for disaster. One of the principle item in repaying any loan is, the ability to earn a wage. If you become unemployed or injured to a degree that you are without a pay check for two weeks, you are going to be hard pressed to meet any of your obligations as it relates to finances, and by the way, that's what happened to many of the borrowers of such loans. Of course, there was another dynamic that added to the current foreclosure atmosphere, and that is, some bankers steered individuals into the sub-prime corral (this happened to more AA's) than needed to be, whereas they would have qualified for a conventional loan, some unscrupulous jackass or jenny steered them into Adjusted Rate Mortgages (ARM's), the acronym fit quite well here, after all, that's the price this charade has cost-ed those that got caught up in this swirl wind,which has only exacerbated the foreclosure atmosphere.
Going forward will require some skillful maneuvering. It's hard, if not downright impossible to get the baby clean while she's still in the mud (the nation economy). I do not mean to cause any further distress to you, but allow me to say this, I don't think you'll be having any pleasant dreams for quite some time to come.  

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