Home > Uncategorized > Vulcan Translator Unit On!

Vulcan Translator Unit On!

(ok…the kid is the taxpayers, the slide is the banks…go with it)

Translation: American Tax Payers to the Rescue! Again.

U.S. Weighs Takeover of Two Mortgage Giants

“Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.”

Yes, yes…now get to the meat of the matter:

“Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.”

Remember, we cannot bail out homeowners. They made bad decisions. They should have read the small print. Caveat emptor.

But, too, caveat venditor. Let the seller beware. And who could be the partner with such banks that made such egregious errors? Hmmm….I wonder:

Predatory Lenders’ Partner in Crime

How the Bush Administration Stopped the States From Stepping In to Help Consumers

“Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers’ ability to repay, making loans with deceptive “teaser” rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.”

The article was written by Eliot Spitzer before he was outed as a frequenter of high priced call girls. It does not make his information wrong, though. An interesting article. Give it a read. We are all so screwed because of the seamless merge of corporation and state. Oh yeah, that would be the definition of Fascism…

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