Foreclosure Of A Dream In The New American Century
On Monday, April 2, 2007 New Century Financial Corp. America's largest independent maker of mortgages to high-risk borrowers, filed for chapter 11 bankruptcy protection. Its fall highlights the collapse of the sub-prime lending industry in the United States, which made $1.3 trillion in mostly Adjustable Rate Mortgage loans over the past two years to borrowers with not so perfect credit and not so provable income.
Just as the Pied Piper led rats and children through the streets of Hamelin to meet their unfortuate demise, in the last decade of the 20th century, thousands of not so well off working class Americans danced to a well orchestrated symphony of financial destruction led by the world's biggest banks and financial institutions.
In the first quarter of the 21st century, thousands of people who were lured into purchasing homes they couldn't afford, with money they didn't have, on credit terms they couldn’t resist from lenders they shouldn't have trusted are now facing immanent financial ruin in the face of rising interest rates, uncertain employment, and deflating home values.
Now one thing I know for certain is that the people controlling the world's money supply are not stupid, otherwise they wouldn't have all the money. Right? So why does the American media machine keep churning out lie after lie like no one could predict this sudden turn in the housing market; that the economy is getting stronger, that home ownership is at an all time high... blah blah blah... knowing full well that a huge percentage of new "home owners" own no part of their homes except for the debt of the mortgage.
Bankers don't do anything on a whim, they don't just decide one day to lend money to people who can't pay it. They know exactly who has what because they're the bank! Bankers don't just get up one day and say "Hey, lets start lending billions of dollars to people who can't pay us back! Sure Bob, I agree, that sounds like a splended idea!" They don't just all of a sudden realize that it might have been a bad idea to make high risk loans to people who they know can't afford them. It just doesn't work that way. They carefully plan their decisions for years then maticulously execute their well calculated plans with stunning precision. So why did they make such bad loans? Why are so many billions being lost?
The simple answer to all these questions is that the people who own the banks have so much cash on hand from record corporate profits that they simply don't know what to do with it all. They own everything for God's sakes! And they just keep getting richer and richer as the masses of the world's people are getting poorer and poorer. So what do the rulers of the world do when they have so much money that they don't know what to do with it? They can't just give it away!
Lenders started foreclosure actions against more than one in every 200 U.S. mortgage borrowers in the last quarter of 2006. In February 2007, 117,259 homes were foreclosed on, a 68 percent rise from January. Now they are going to pull the switch--raise interest rates, consolidate wealth, reposes property, and raise the criteria for creditworthyness. The net result for "average" Americans (most with "less than perfect credit scores")? I don't want to be a pessimist, but it doesn't look very bright on the near herizon if your not already independently wealthy (top 20% of US households).
I can't help wondering where all these new home buyers now facing foreclosure at a record pace are going to live when they wake up from this 21st century version of the American Dream bankrupt and homeless?
Just as the Pied Piper led rats and children through the streets of Hamelin to meet their unfortuate demise, in the last decade of the 20th century, thousands of not so well off working class Americans danced to a well orchestrated symphony of financial destruction led by the world's biggest banks and financial institutions.
In the first quarter of the 21st century, thousands of people who were lured into purchasing homes they couldn't afford, with money they didn't have, on credit terms they couldn’t resist from lenders they shouldn't have trusted are now facing immanent financial ruin in the face of rising interest rates, uncertain employment, and deflating home values.
Now one thing I know for certain is that the people controlling the world's money supply are not stupid, otherwise they wouldn't have all the money. Right? So why does the American media machine keep churning out lie after lie like no one could predict this sudden turn in the housing market; that the economy is getting stronger, that home ownership is at an all time high... blah blah blah... knowing full well that a huge percentage of new "home owners" own no part of their homes except for the debt of the mortgage.
Bankers don't do anything on a whim, they don't just decide one day to lend money to people who can't pay it. They know exactly who has what because they're the bank! Bankers don't just get up one day and say "Hey, lets start lending billions of dollars to people who can't pay us back! Sure Bob, I agree, that sounds like a splended idea!" They don't just all of a sudden realize that it might have been a bad idea to make high risk loans to people who they know can't afford them. It just doesn't work that way. They carefully plan their decisions for years then maticulously execute their well calculated plans with stunning precision. So why did they make such bad loans? Why are so many billions being lost?
The simple answer to all these questions is that the people who own the banks have so much cash on hand from record corporate profits that they simply don't know what to do with it all. They own everything for God's sakes! And they just keep getting richer and richer as the masses of the world's people are getting poorer and poorer. So what do the rulers of the world do when they have so much money that they don't know what to do with it? They can't just give it away!
Lenders started foreclosure actions against more than one in every 200 U.S. mortgage borrowers in the last quarter of 2006. In February 2007, 117,259 homes were foreclosed on, a 68 percent rise from January. Now they are going to pull the switch--raise interest rates, consolidate wealth, reposes property, and raise the criteria for creditworthyness. The net result for "average" Americans (most with "less than perfect credit scores")? I don't want to be a pessimist, but it doesn't look very bright on the near herizon if your not already independently wealthy (top 20% of US households).
I can't help wondering where all these new home buyers now facing foreclosure at a record pace are going to live when they wake up from this 21st century version of the American Dream bankrupt and homeless?
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