Bankruptcy, Foreclosure, 401-K, IRA, Liens, Taxes and Refrigerator boxes

Today, I am going to explore some things which are on my mind since Fanny and Freddy teamed up with Paulson, Barney, Dodd, BO and others to line their own pockets and did so at the expense of most of the world's 401-K's, IRAs and other retirement accounts.
I really do not believe Boomers will return to the stock market at least for many years. Heck, most of them cannot afford to. They are now Googling to learn more about bankruptcy and foreclosure.

If you are into true facts, you will appreciate this explanation, if not, you should not read it and, instead, keep your head in the sand and vote for BO. This housing mess began during the Carter administration when that liberal pack said everyone should have a house and the government (you and me) should help them get one. That may be the reason why Carter is so closely attached to Habitat. Habitat is a good thing, but even there, the owners must qualify. That was another way of explanation the ‘redistribution of wealth’ concept which BO has a plank in his and his handler’s platform.

The next step was when Bill Clinton signed into law a mandated requirement that when the banks received an application for a housing loan, they could not turn it down. It would be guaranteed by the government (you and me again.) The qualifications were to be 18 years of age and to hold up your right hand. The test was to see if the borrowers knew their right from their left. If not, there would be special tutoring session if they wanted to attend.

It was at that point that the ship hit the sand and it took a few years of LIBOR movements – kind’a sounds like what it amounted to. Buyers who could not pay the sub prime mortgages which in some cases had been forced on them by a bank or credit union, now had a house. They couldn’t pay for it, the sub-prime loan, but they had a house.

I have a friend who has a house and on that house, he had some liens from Navy Federal, contractor’s liens, second mortgages and went to get another loan about three and half or four years ago and was turned down because of the liens. Two years later he was called by the bank which had turned him down and was told, “that equity loan for $125K which you applied for sometime back,” (2years) has been approved and you can come pick up the money in three days. He didn’t go because he just knew someone had made a mistake, but three days later, $125K showed up in his bank account.

He has now lost that money plus a heck of a lot more in the stock market. The clerk at the bank was trying to get a bonus for the number of loans she could award.

What were the lending institutions to do with all of this worthless paper? They had to sell it or the government auditors would fine them for having too much worthless paper on the books and outstanding. The “bad” loans were sold in various lots which were put into yet larger lots of mortgage loans and sold to other countries.

Then F and F began to unravel when the ARM’s escalated and the owners could not make the payments. Every nation who now has those loans are now experiencing a huge drop in their stock exchanges and their currencies are depreciating rapidly.

Barney Frank denies ever hearing of Fanny and Freddy; he and Bill O’Reilly have a big argument on the TV which accomplished nothing except O’Reilly had a spraying contest with a skunk; Senator Dodd thinks it is terrible what “Bush” has allowed to happen. The last I looked, Bush has to get that sort of mismanagement approved by the Senate and the House. Madame Speaker just has that ‘what the heck happened’ smile on her face and continues to make non-relevant speeches.

Now, my confession, I voted for Carter who has become known as the worst president ever, and I voted for George Bush as well and it is likely that he may take over that number 1 position at least for the next several years.

I don’t know to whom to direct my anger, but there is plenty to go around. BO, Barney, Dodd, probably McCain, and God only knows who else have abused the system for their own benefit and left the majority of the tax payers to clean up their insufferable mess. If you don’t believe it, just try to trace back where the $750,000,000,000.00 came from that was approved by both houses of Congress to ‘bail us out of this disaster’ which no-one created. Now Pelosi is calling for another $300,000,000,000.00 to throw on top of this smelly warm pile to cover the stink.

I learned today that $125,000,000,000.00 is being given to the major banks so that they can buy smaller banks, give some raises and reward their CEO's. I thought that someone was going to look at the bail money and try to keep the CEO's {the "rich white guys} from continuing to cash in so heavily. What happened??

OK, I have vented a bit, but that is where the problem began which has resulted in companies closing, companies laying off and firing employees, more food stamps being printed, pawn shops doing a land office business from “middle class” people who never had to leave their shadow on the brass balls until now.

The pitiful part is that those hapless individuals who were elected by the people and for the people found it more advantageous to feather their own nest first. Will they be re-elected? Probably!

Frankie will post again tomorrow and see if those same taxpayers can learn the proper words for what is happening to them and will, in a few days, recommend a way out of this bad situation. “If it happens to you, it is a recession. If it happens to me, it is a depression.”

One more thing, it is also a fact that inside of acorn there is a worm, at least one.