The Homeowner Bail Out

Yes, I am in favor of a homeowner bail out.

I was NOT in favor of the big bank bail out. Why? AIG sending its staff to an expensive retreat, after accepting $150 billion... Need I say more?

However, there are a LOT of ways that the government could help homeowners. Here's some random thoughts:

1. Lend homeowners enough money to redo their loans. Something like, original lender loan drops to the current value of the house, Feds lend homeowner enough $$ for a 1 to 3% interest second mortgage. And while they're at it, set up automatic payments according to the homeowners' paydays.
2. Matching funds, lender does a free refi, loan becomes a 30 - 40 - even 50 year fixed rate loan, Feds give lenders a matching amount of $$ for the amount the lender forgives on the loan. Naturally you would want a cap on this amount.
3. Drop interest rates. All mortgages drop off 2% on the interest rate, with the lowest rate being 5%, Feds give some fat tax breaks and incentive $$ to lenders.
4. Force lenders to allow homeowners to make bi-monthly payments, so it's easier to make payments according to the homeowners' paydays and budget.
5. Lenders forgive up to 3 months payments, get a tax break or incentive $$.
6. Don't let lenders do loans without an escrow account. That will stop lenders from playing games with the payment amounts. (I know this one, I was ASSURED that my loan would include the escrow -- well, at the last minute, when I was already committed and really had no choice, oops, that was wrong, didn't include the escrow. So I got screwed. Dude knew I was out of money, I couldn't start the process over with another lender. He got his commission and I got "did"...)
7. Freeze foreclosures for up to 6 months to give homeowners a chance to catch up, tack up to 6 months payments onto the end of the mortgage.

Naturally, all of these random thoughts should have limits. Lenders shouldn't have to suck up a 700,000 loan when the house value has dropped to 200,000. But they could refi the original amount into a lower interest rate, longer term, fixed rate loan. Why? Because if the homeowner sits tight for another 3 to 10 years, the house value WILL go up again.

But there are many, many ways that the Feds and the mortgage companies could help homeowners and at the same time, help themselves.

Why? Because if the mortgage market can be stabilized, the rest of the economy will also begin stabilizing.

The house of cards has already tumbled. Let's change the building materials back to brick and mortar and get our economy back on track.

I have to go now, time to get ready for work.

Think about it. In fact, think outside of the box.

This CAN be resolved without people losing their homes and the lenders not losing a lot of money. Stop saying "can't" and start asking "how"...

President Obama Represents Hope

While die-hard Republicans are dismayed at the election of a Democrat, I am obviously thrilled at our choice.

I think President Obama's two terms in office will be a bright spot in American history. Yes, two terms. He is going to pull the economy out of the toilet. He is going to get some resolution to our overseas issues, like Iraq, Iran, Afghanistan. He is going to be more flexible and is already perceived as a man to work with, not against, in international politics. And in politics, how you are perceived by others is half the battle.

Yes, the Repubs are having fits, but they have only their party to blame. Even my Dad, a die-hard Republican, told me that he has to hold his nose to vote for the lesser of two evils. That is a telling statement. "The lesser of two evils."

The Republican Party has lost touch with its own membership.

I truly believe that most people are moderates with a few wild swings one way or the other. The Party has catered a little too long to the right wing wack jobs that fill the airwaves with dramatic statements, misrepresentations, and flat out lies.

Yes, they have a right to their opinions, but while they've been shouting BS to the winds, the massive silent majority in America spoke with their votes.

President Obama represents hope.

Hope for enough of a change to make a difference.

Now, I'm not deluded enough to think people want big changes. No, no, they absolutely don't.

What people want is to live decent lives, have a good job, a roof over their heads, food to eat, a nice vehicle to drive, an education for their kids. Americans like their toys, yes, but mainly they want to be secure in their lives.

People want to go to work, come home, watch TV, maybe play a sport, enjoy their families. They want to be able to tailgate now and then at the stadium. They want to eat out now and then. They want to be able to go to the doctor when they're sick, so they get better.

They don't want to be sweating over the checkbook trying to figure out how to pay the increasing mortgage (because the broker lied to them about the advantages of that low-rate adjustable mortgage -- believe me, don't blame the victims of fraud!!).

People don't want massive changes in the American system. They just want to live their day-to-day lives and be able to retire someday.

The mortgage meltdown was only one more symptom of the failures of the American economic system. I'd take it back to the Enron debacle. That was the beginning of the meltdown. We just didn't know how big the lies were and how far entrenched into our economic system they'd become.

President Obama isn't going to be able to perform miracles. But he is going to take charge and start working on behalf of the PEOPLE of America. Unlike all too many politicians, he hasn't forgotten where he came from -- middle class working people.

President Obama represents new hope in America.

Self-Fulfilling Prophesies

As the election gets closer and closer, people are getting more and more worried.

Times are tough.

Some of our financial fluctuations are self-fulfilling prophesies.

The stock market is nervous. The media is blathering, The more the talking heads talk about recession, the more likely we are to fall into a recession.

People, stop jumping every time some talking head on TV says "boo!"

Don't be a sheeple.

Listen, I'm not saying to run out and spend your money like you used to. You can't afford it. In fact, you couldn't afford it back then either, but things were booming and you were full of optimism (and yourself) and thought things would be like this forever.

As my Pastor says, "If you don't like what's going on right now -- Change is coming!"

"And if everything is great, get ready -- Change is coming!!"

Our economy is like a huge ocean with tides. Sometimes it's up, sometimes it's down.

The media will doom and gloom you until you believe that things are all bad and they're never going to get better.

At that point, the prophesy fulfills itself.

So, Mom's advice today is to hang on. Tighten your belts, hang on for the ride. I foresee that by this time next year, things will be improving. You may have to make some sacrifices, like cut off the cable or the satellite dish, or go to dial-up instead of DSL, keep the same car for another couple of years, learn to cook, live in a smaller house, perhaps start all over again as a renter*, etc.

Times will get better.

Soon the talking heads will start blathering about how the financial markets are improving, that houses are selling, that the tide is again turning.

Soon the market will go up and the economy will be booming again.

(I hope gas drops below $2 a gallon first!)

Times will be good again.

But during the next swing upward, don't get so caught up in the hype. Don't forget this time. Save your money, plant a garden, buy a smaller house, drive a smaller car. Be frugal.

Don't let the self-fulfilling prophesies drag you down during the next cycle, the next wave of boom and bust.

Don't let the talking heads convince you that your life sucks.

Well, it might, but only you can change it!!

Use these tough times to improve your life.

It's another lesson. Learn from it.

Times are tough, yes, but I already see signs that we're pulling out of it. Houses are selling, gas prices are dropping darn near every day, banks are working with home-owners...

It's going to be OK.

Really.

(*If you lose your house and do a BK, in about three to four years you'll be able to buy again. It's NOT the end of the world to lose a house. You just have to get your financial house back in order, have three good credit lines, like a credit card with your bank, a small loan for a fridge or something, a small auto loan, and be current on everything. Note: I said SMALL!! And start saving your money. You should be able to qualify for an FHA loan. Been there, done that, and struggling right now to make my own mortgage payments, but it's going to be OK!!)

The Number One Concern Is The Economy

Huh?

The number one concern of American voters was Iraq.

Now it's the economy.

Not to be suspicious, but have you noticed that whenever the government wants to distract the American voter from an issue, the media starts broadcasting massive missives on another pressing topic?

What are they trying to distract us from now?

Suddenly, Bush's "war" isn't the top of the news, it's all about the economy. Gas prices, the stock market, food prices going up, the tomato/salmonella thing (look people, someone was using uncomposted chicken poop as fertilizer, WASH your veggies!), and the usual assortment of murders and crime.

I can't figure where this would help the Republicans, unless it's a ploy to distract us from something else that's even worse.

Of course, as Dad says, the news is all about the bad, and if the media can't find something bad to report, it'll make something up.

Or dredge something up from the past.

Speaking of, did you see that the news was actually reporting the anniversary of the OJ Simpson slow chase in Los Angeles? Like we really care about it??? Man, it really must've been a slow news day to bring that one up.

Or, being a tad paranoid, was it yet another chance to bring up the topic, "rich Black man did crime and got away with it", thereby making all rich Black men look bad? In fact, making ALL Black men look like they have the potential for violence?

Yes, you may think that my thoughts are a little on the paranoid side.

Well, our government has proven time and time again that there is NO hesitation to lie to the American public. Just this past week, it was reported that a POW from the Korean War was buried in China. Despite all previous declarations by our government and China that all POWs were returned and none were buried in China.

Me? Paranoid? Hmmmm.....

Maybe.

Then again, maybe I have a better nose for BS than the average American.

(Oh, and that UFO/Roswell/Area 51 thing, puleeze people, the government tested many, many experimental planes, some of which were triangle shaped. Check out the book World's Worst Aircraft by Bill Yenne and then tell me about funny shaped unidentified flying objects. Don't buy into everything you read. Even if I say it!!)