Wednesday, September 17, 2008

Financial Meltdown

The funny thing with all this Financial Crisis is that it was 100% preventable much like the Oil Crisis. We as consumers controlled the market and created this monster with our irresponsibility. Do you really think that the housing market would have gone so haywire if people had purchased homes that they could afford with mortgages that they knew they could pay back based on the money they were earning at the time? We can whine all we want that the government didn't do enough or did too much because they are our elected representatives and should have been looking out for us. You can blame the Wizards of Wall Street for making you those sweetheart of a deal.

I have purchased my homes via Navy Federal and they made me prove that I could afford to pay for the house I was buying each and everytime. They would not let me buy more than they thought I could afford and there was no thought give to future markets or incomes. I worked with a mortgage agent that does not sell its mortgages, so if they make a bad loan they live with the consequences unlike the fly by night mortgage wheel and dealers. If a bank won't give you money for a house you can't afford then maybe you shouldn't be buying that house. If you think that some how a magic fairy is going to come along and sprinkle mortgage payments into your account, guess again.

That isn't to say that there isn't blame to go around, but first we must admit that we have a problem then we can work to solve the larger problem. I say treat the Wizards like drug dealers and seize all their collective assets and use them to fund the bailout. There are millions in bonuses and salaries for these criminals that could go a long way in shoring up the markets. I also say that Navy Federal should take over Fanny and Freddy. The should force them to do what is right and save the taxpayer a bundle of bailout money. All failing loans should have to be reviewed and refinanced under the new rules. If you can't afford the house then it will be sold in a depressed market to someone that can afford it. Of course this will hurt the ones at the very bottom, which is a shame but that is America. You can better your lot at any time by working hard and getting an education. I know that there are lot of people out there that won't agree, but to be honest "the poor will be with us always" (Jesus).

As for our wonderful pocket lining Congress, I have always said throw them out and start over with no lobbyist and see if things don't get better. I am really thinking that for 2012, we need a new reformer party headed by VP Palin. She would have the executive experience without too much Washington stink on her. We need candidates that will run on term limits, elimination of lobbyists, and accountability particularly in government spending and employment. This would be a hard fought battle with the established parties that would have to grow out of the grassroots. We would be up against huge corporations and political machines just to get the candidates on the ballots, but with the Internet it is now possible to make this a reality. It has always been said that a third party candidate would never be able to get anything done, but with a third party Congress to back them great things could be accomplished.

Let me know what you think.

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