Wednesday, October 1, 2008

The Blame Game

Enough to go around and then some.

1-The folks who work for Fannie and Freddie and get paid according to the worth of mortgages they can generate.

2-The guys at the top who were ousted but who had a real easy float with their golden parachutes and in the case of a particular trio, ended up at financial advisors to Obama.

3-The unqualified borrowers who were only too willing to be conned or were actually doing the conning knowing full well they would not be able to honor the commitment to pay back the loan. They also had the incentive to make money on some of these deals which were what I would call a kickback from the likes of AmeriDream, Genesis and other programs put in place to "assist" low income become "home owners."

I'm not fully versed in how this works, but apparently the purchase price was inflated 3% or more which made it possible to walk into a bank or lending institution with an empty purse and come out with keys to a house and $3 or $4K in cash.

I'm not sure how Acorn's community organizations which I thought originally were to foster neighborhood activity, get folks interested and active in civic and probably educational projects, voter registration and some such as that. Now I see photos of Acorn community organizers wearing T-shirts with slogans to help make the poor homeowners and protesting for any manner of government assistance.

Fortunately there is no special assistance for Acorn in the bailout/recovery bill.

If anyone has more details we'd like to hear from you.

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