September 23, 2008 by Maxi
The Government has no money. One way or the other Local, State and Federal Government fill the Treasury with the people’s money. For example: I used to own a clothing boutique. The equipment was mine also, bought and paid. Still, I had to pay taxes to use that apparatus. My right hand, it’s true, that’s the way it works. There is also income tax, property tax, sales tax, licenses, permits, etc.
We realize the Federal Government doesn’t know how to budget. Now we’re faced with this Subprime Mortgage situation. We hear comments like: “The poor homeowners shouldn’t lose their homes.”
Only these are not homeowners; not much more than renters actually. They haven’t been in these homes long enough to have any equity. Most went into these homes with no down payment and a FICO score no higher than 600. In other words, buying a Cadillac while earning a Chevy paycheck.
The lenders don’t care; they don’t keep the loan. These mortgages are always passed on.
The Federal Government is now bringing other homeowners who can’t meet their mortgage under this umbrella. Why? This goes beyond the Subprime issue.
Who is actually footing the bill for these mortgages—all because of greed?
May Your Glass Always Be Half Full