HowardThe Machers Don't Know, Mortgage bust
December 9th 2006 01:07
Good Shepherd's Reconstr. Corp., Bronx
The good people are trying to help others. The bad people are trying to play their games, but the handwriting is on the wall. One-tenth of the housing mortgage market is now the "sub-prime sector", where foreclosures are hitting 2.57 percent of all of the sub-primes issued in 2006. These loans are given to the poor, heavily to minorities. They involve little if any income check. The people who issued these loans didn't give a crap if they got paid back or not, they just wanted to play the money game. Let's tell the truth about this thing.
You are talking about almost $1 trillion a year. The largest commercial banks bought up the loan sharks that used to do these deals, and now they are done by the big guys. In the first half of 2006, one out of five mortgages drawn up in the USA were sub-prime mortgages, according to the Mortgage Bankers Association.
So what happened to the rock of the US financial system? the rock has rocked off the block of H & R Block, the famous tax accounting service. They lost $156 million, coming frojm their subsidiary Option One Morgage which is a large maker of sub-prime mortgage loans. According to thestreet.com, H & R Block is desparately trying to dump Option One.
Meanwhile, the Hedge Fund Machers were out in force at the UJA dinner in New York. If they think it's a good idea to have another Middle East War with Syria and Iran, they may be making the neighborhood of Israel too rough to exist in. Remember what happened in Lebanon this summer?
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