Federal spending Solution

Federal spending to get out of this mess is like having a Nine Inch nail
impaled in your ear and swallowing an entire bottle of aspirin.

. It helps for a while

. the nail is still there

. and now you have a ulcer

Financial Crisis, Whose to blame? From an ex loan officer

There is one person, probably an employee of Fannie May or Freddie Mac, who
approved a change in qualifying borrowers for ARM home loans.
First a Quick Primer An ARM (Adjustable Rate Mortgage) is a loan where the
interest rate is tied to the economy with an index. So in bad times you
might pay 7% and when the economy is booming you might pay 11%.
This sounds innocent enough, but too sell people on ARM loans lenders offer
an introductory rate below the actual rate of the loan. So a 6% ARM might
have a 4% rate for the first 6 months payment. Then the index kicks in with
a 2% cap on raises and a 6% overall. Sounds small write, I can make that,
Right!
For a loan of $250,000 your payments are;
First 6 months (4%) $1193.54 / Month (Less than renting)
Second 6 months (6%) 1498.88 (Fine for most double income families)
Third Six months (8%) 1834.41 (Crunch time)
Fourth adjustment (10%) $2193.93 (My god !!)
And the final (12%) $2571.53 (the Homeless)

Now no one in the right mind stays in an arm as interest rates rise. You can
see that the cost of a Loan $2000 - $4000 would be recovered quickly in a
Fixed at $1748.04
In the past to get a loan you have to qualify for the loan. Your income and
liabilities are checked to evaluate your ability to pay the loan.
Traditionally the loan payment had to be less than 39% of your monthly gross
income and with taxes and insurance less than 33% of your net. (Includes
credit cards and car loans, alimony, etc ...)
The change was that traditionally you had to qualify at the 6 month rate for
an arm loan, but they started accepting borrowers qualified at the
introductory rate.
These people should never have gotten a loan. And the big guys Like AIG et
al should never have bought the loans.

This is all the Insanely greedy, frustrated by not making their insanely
gross profits on the backs of the ignorant. Stop giving the Banks money!!
Buy the houses from the Defaulters and then sell them to people who can
qualify for the loans.

corporations and elections

I realized that the ability of corporations to make political donations is
part of the balance of power that makes this country great. remember that
while Corps can donate money, they do not get a vote. They affect the number
and type of candidates that you see, and can vote for. But they are
ultimately at the whim of the voter.
This allows companies to keep elected officials, that promote commerce which
is where all our prosperity comes from.
Many Liberals say that we can do better, Free healthcare, etc...
These all cost money, and we feel like we have money because we are
profitable and allow corporations to function like they do.
Even the most despicable dictators (Genghis Kahn, Alexander, the Romans)
knew that ultimately their power resided in the tolerance of the people.

An Epiphany: (Corporations)

Corporations can be dissolved by consent without legal ramifications.
Corporations are dissolved regularly when their function is not longer
profitable. Therefore Corporations are not entitled to the right of free
speech. Since Corporations can be created for the purpose of speaking and
then dissolved.

Corporations have been given the same rights as individuals, but not the
same responsibilities. When a person speaks, the content will follow them
forever, while when a corporation speaks, the content follows only until the
spin and names are changed.

What should be done;
Corporations should not be allowed to make political contributions of any
kind. (Big Period)
If you have read my blogs in the past you will note, that I believe in a
small, trusted government. I am centrist and libertarian. For my government
to serve me to be of the people, by the people, and for the people. Then
corporations need to be removed from the process!