Living past your means – buying too much house

Hello my good readers and listeners:

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Here is another blog/podcast for you. It concerns living past your means and specifically, buying too much house. If you have kept up at all lately with the current events of our country, you know there is an issue with the current credit industry brought on by unscrupulous lenders and borrowers.

Let's lay out the issue first. The US Government led by Jimmy Carter in 1977 passed a law called the CRA which allowed those who could not afford a house to get one anyway. In 1995, our illustrious Billy Bob Clinton made it a law to force lending institutions to lend money to those who could not pay it back. These were mainly minorities. He then forced Fannie Mae and Freddie Mac to buy these mortgages from these banks. Since the loans would not be paid back, the effect would snowball until today.

Since 2002, Republicans have been warning about this coming economic collapse because of these rules and bad paper being foisted on an unsuspecting public. Now we are being forced to pay for the thievery of the Government, the lenders and the borrowers.

These are the crooks in this. First, the Government is guilty because they passed these laws and forced these institutions to commit this fraud. The lending institutions are guilty because they created all kinds of fancy loan packages to make consumers overbuy what they already could not afford. Let me give you an example. The lender would look at the buyer and tell them they could afford $150,000.00 house on their salary. However, because they could give them an ARM loan and an interest only payment for 1 or 2 or maybe 5 years, they could afford a $300,000.00 house! The third guilty party is that consumer because of his or her greed. Knowing up front they can only afford the lesser house, they opt for the non affordable one to impress everyone. Vanity, though art a jewel! Therefore, we have 3 guilty parties in this scenario.

Those of us who bought and live reasonably are now expected, nay, commanded to pay for the thievery of these greedy crooks! Tonight, the Senate passed by a 74 to 25 margin this bailout bill. The CEO's of these companies have collectively stolen 100's of millions of dollars and we are expected to pay it back! What a crock!

Also, in the first bill that was defeated in the house, it said there were taxpayer safeguards built in although the taxpayer would wind up paying. You see, the Government would buy the bad paper and wait for it to go up, sell it at a profit and the taxpayer would benefit. However, houses age and become decrepit rapidly if no lives in them.

Vandalism occurs, crime rates skyrocket, neighborhoods go to a hot place in a hand basket and these bad loans become even more worthless, but wait, the taxpayer won't have to pay! Why, it is FDIC insured! Yea, the taxpayer is saved! Wait! Who funds FDIC? The Government! Who funds the Government? The taxpayers! Wait, the taxpayers pay after all!

George Bush whom I love has let us down on this one. We are being duped. Do not fall for this charade. You say you are not interested in politics? This WILL affect you if you contribute to this society. Therefore, your pocketbook will get skinny and the fat cats get fatter! Time to get interested!

One other issue I think we should look at. Obama! Why will he not release his school records? Medical records? Harvard thesis? State Senate record? Al Gore had to do it. George Bush had to as well. John Kerry also was forced to do it, but Obama gets a pass! What is he hiding in all those records? Maybe he isn't all that bright after all? Could be he cheated a lot of better students because he got in due to affirmative action? Could be he met a certain terrorist named Ayers years before he said he did.

I would ask you to look into this and start talking to your friends and family about it. We need to stop this Socialist with Marxist tendencies from destroying our beloved country. We have 34 days until the election. It is high time we get involved and make sure America is safe from tyranny. make no mistake, Obama is no friend of the USA.

I would really love to hear from you and hope you choose to leave feedback today! It is vitally important that we talk about this. Until next time, keep reading, listening and writing!