Thursday, October 2, 2008

Economic Crisis. . . Who is at fault?

Wow am I ticked off right now! I just finished watching the VP debate and then started thinking about the "economic crisis." The GREED of the wealthy is so aggravating!

As lower middle class Americans, my husband and I have struggled with our credit for as long as we have been married. Due to periods of unemployment we were unable to pay some medical bills and cell phone bills, which then went to collections. Thus accruing more fines and debt and delinquencies reporting to our credit reports. I must also add that money mismanagement in early adulthood also aided in lowering our credit scores to below 600.

We have experienced first hand how having poor credit leaves you prey to predatory lenders. When you have poor credit the only auto loans you can get are at extremely high interest rates. The only credit cards you can get have large fees and high interest rates attached to them. Now days many employers look at your credit reports before hiring you.

When trying to fix your credit score the only advice you can find is pay your bills on time and pay off your collections. How does one do this if they can't find a job because they have poor credit?

Like most Americans it has been our dream to have our own home. To pay a mortgage on a property that would be ours rather than pay rent to a wealthy landlord. Two years ago we looked for a mortgage through Countrywide. We received one offer from a bank with incredibly ridiculous terms, high interest, and balloon payments. Thank God that my husband talked with his boss about this and she advised against this. We were thinking of going through with it because we really wanted a house of our own, a yard for our son to play in, and a garden to grow vegetables.

In the debate tonight the question was asked in regards to the economic crisis "Who do you think was at fault? . . . Was it the greedy lenders? Was it the risky home-buyers who shouldn't have been buying a home in the first place? And what should you be doing about it?"

HMMMM!!! let me think about that. The risky home-buyers who shouldn't have been buying a home in the first place! OH PLEASE! It was the greed of the filthy rich!!!

OH that urks me! Extremely greedy lenders took advantage of people with poor credit. They probably used the term "less than perfect credit" to lure them in. These "risky home-buyers" wanted to live the American Dream. A bank was willing to lend to them. Sure there was a balloon payment or it was an interest only payment plan. (WHO THE HELL CAME UP WITH THAT?) Of course they went for it. Mortgage brokers were probably telling them that this was their chance. They could agree to these terms now and in a little while they could refinance to a conventional fixed rate, or they probably pumped them up on how they could make money on this, in a year they could sell that house for tens of thousands more than they were getting it for that day.

So the greed of the lenders, the greed of the sales people, and the failure to regulate lending practices lead to this crisis!

And now they hope to pass a $700 billion bailout bill. Since government is considering stepping in and it will be my tax dollars that go to pay for this I demand that they consider helping the "risky home-buyer" get out of the grasp of the predatory greedy lenders, by getting them out of interest only loans, or crazy balloon payments, and into conventional loans.


I can't believe a week has come and gone already. I am especially filled with gratitude today.

1. I am thankful for my mom and Russ and the support that they have given us. My mom is an extremely caring person who worries about her kids non-stop and would do anything to help us.

2. I am thankful to live in this great country! Even though it has its problems it is still the "Land of Opportunity"

3. I am thankful that Todd did well at his interview and was offered the position at Coinstar.

4. I am thankful for hard times because they really make me appreciate the good times.

5. I am thankful for Karl's apple orchard. His Organic Fuji apples are so delicious!