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Thread: Crisis looms for entire economy

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  1. #1
    Join Date
    Mar 2006
    Boston, Mass.

    Default Crisis looms for entire economy

    Crisis looms for entire economy
    March 24, 2007 (Newsday)

    by Peter Morris is chairman of the PRM Realty Group

    Congress must focus on rising mortgage defaults to prevent a slip in confidence leading to collapse

    If Washington doesn't address the rapidly building multi-trillion-dollar crisis in residential mortgage defaults, its paralysis will help trigger a national economic recession that could touch every homeowner.

    The crisis has been building for months - if not years. Experts agree it is a result of banks and other lenders' granting home loans to people who were not truly able to afford the payments. Now, with the national economy in a slide, the number of mortgage defaults is rising at an alarming rate.

    Before we engage in the usual finger-pointing over how we got into this mess, let's agree on an aggressive course of action to mitigate it. Our nation must recognize there will be economic pain if the problem goes unaddressed; there will be residential foreclosures and billions of dollars in write-offs as auditors discover that many of these mortgages can never be fully paid down. Many families will find that they may have to consolidate their living space if they hope to hold on to at least one viable residential dwelling.

    The nation must ensure that the mortgage market remains viable, liquid and stable. The response should include a government restructuring of a portion of the multi-trillion mortgage debt through federal and state underwriting.

    Dear Congress,

    We made a fortune in real estate during the housing bubble. Now that it's collapsing, my industry is screwed. Can you please rescue me and my pals with a tax-payer bailout? We'll throw in a couple of bucks from the private sector to make it look good.

    Our annual contribution toward your next re-election campaign is enclosed.



    Les Rippemoff
    Chairman, Housing Bubble Racket Realty Group
    __________________________________________________ ________
    Dear Congress-critter,

    There is absolutely no excuse for this. This is the most predictable "financial crisis" in history.

    If you pay one red cent of my hard earned money to bail out anyone who was sold a mortgage they could not afford before you've extracted every red cent made by the lenders and banks who created this crisis–which has been warning you about since 2002 and dozens of web sites since then–I am going to do everything in my power to see to it that you don't serve out your term of office.


    Hard Working Taxpayer
    __________________________________________________ ________
    Dear Les,

    It's not about pointing fingers, it's about who gets left holding the bag.

    Where were your letters to Congress during the housing bubble, when you were making money hand over fist and could have helped prevent the "crisis" that you want me and millions of other taxpayers to bail you out of now?

    Screw you.


    Hard Working Taxpayer

    iTulip Select, The investment thesis for the next cycle™.
    Last edited by FRED; 05-20-07 at 02:26 PM.



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