This is only the tip of an iceberg of wholesale fraud and usury that has permeated our banking systems for dozens of years.

When you see a new flag of sophistry lying on the ground, be careful to consider whether those words that someone would put into your mouth are really yours. A popular image ... the guy who just had to have a bigger McMansion, or whatever ... is appealing and designed to trigger strong emotion (resentment, he had it coming, and so on) but it's also a Psych-101 principle of "crowd psychology" where you-n-me are the great Crowd.

For nearly 50 years, the outcome that "Ike" Eisenhower tried so hard to warn us about has inexorably come true, such that an entire profession of bribery is just a few streets over from the Congressional office buildings. No one used the word "inflation," and it seemed to be "eat, drink and be merry" but when you find the shirt disappearing off your own back no matter how hard you try ... ladies and gentlemen, the reason why is that you are being swindled by the leaders of your own government.

Law Enforcement. As in, "Impeachment," "Expulsion," and "Recall." If there is no rigorous law enforcement there is no law, and if there is no law, applied consistently from all the way to the bottom to all the way to the top and everywhere in-between, then there is no Constitution and we may as well take that document out of the National Archives and use it as a place-mat.

I prefer "Law Enforcement." We throw CEOs in jail for stealing millions... but look the other way when other Chief Executives and crooked Boards of Directors steal ... quadrillions? What's wrong with this picture... is obvious.

Remeber the info-mercials? What was it ... "How to become a millionaire in real estate without using your own money."

That's how we got here. The house of cards is "adjusting downward".

100% of the people who got "interest only" mortgages for the first 2 years so that they could "flip that house" have zero equity in thier homes and now since they can't sell it - have to actually pay the principal - and will go into forclosure.

Hopefully, the taxpayer will not be left holding the bag on a bailout of these reckless speculators!

http://nymag.com/news/features/43574/

It's tragic.

From the article "The threat of so-called "mortgage walkers," or homeowners who can afford their payments but decide not to pay, also increases as home values depreciate and equity diminishes. Banks and credit-rating agencies already are seeing early evidence of this."
--------------------------------------------------------------------------------------------------------

This is a problem that shows no signs of getting better any time soon. It has actually morphed into something more "creative", on main street.

People have generally given up trying to pay for a mortgage that is way over the value of their homes and either walked or just moved their money to another bank and let the foreclosure happen - that's the old news for almost a year now.

The new news is sellers are now trying to cash in their credit ratings by having buyers lined up for short sales, now that there won't be a charge by the IRS. They'll just start missing payments and have a buyer produce a short sale offer to the bank. Sure, it may cost them on the credit rating for a couple of years, but they appear willing to take the risk.

I don't agree with it at all.

But I can't blame them either. The victims appear to have learned the game of creative financing quicker than expected.

Y'all gotta' hand it to President Cheney and his boy-toy Bush; they almost pulled it off.
They managed to screw up the economy for decades to come, so their owners in Corporate America could finally afford that fourth mansion, and then almost managed to slither away under the radar to pin their economic debacle on the Democrats.
Almost...
Now even the hayseeds who voted Cheney/Bush in, because of homophobia, HAVE to see they were played like so many confederate fiddles.

Let's put REAL Americans back in charge in November...not another for sale Republican with a bar-code on his arse!!!!

Another day, another record low for some economic indicator.
Thanks President CHENEY & ROVE!

COULD WE PLEASE have another tax cut for the top 10%. I'm sure that will help. Just sure of it.

**

The cost for the war in Iraq is our economic security.

The Soviet Union held its own during the cold war, until they ventured into Afghanistan and a financialy unsustainable war there.

The Soviets war in Afghanistan brought about the end of the Soviet Union and Communism in Russia.

Will the U.S.'s war in Iraq bring about the end of democracy in America?

This is most disturbing news (not surprising) as HOME EQUITY was the final and ultimate last stand in many consumer's financial lives. Many people are living paycheck to paycheck with little or no savings, but many had some equity stocked away in case things got really bad.

Things are really bad. The lower & middle classes are being squeezed so hard (see rises in the following prices: gas, food, clothing, education, health care, etc.) that soon there will be nothing left but a large destitute population and the Top 1%.

A day of reckoning will ensue.

I'm glad I own my own home outright and no debts other than monthly purchases and bills which get paid off forthwith. But if I was in a bad mortgage situation, upside down, I'd probably just sit it out.

Given that five states, last time I looked, are knocking back foreclosure applications because the money men cannot even show they 'own' the mortgage, well ... suffer, you swine. That's the downside of asset securitization, CDOs and the rest of the voodoo alphabet derivatives.

All the short-term fixes thus far have only delayed the onset of reality. Read about the great Real Estate Boom in Florida in 1926 and see how reality bit. It has to happen again.

1945--Millions of real American Heroes returning from two war fronts having given their very best to this country, and waiting for them was a thing called the GI Bill that gave them thanks for a job well done and the first chance many would ever have at being a part of the American Dream. Home ownership. A vested interest in the Democracy they had just saved.

Where is our GI Bill for today's veterans, of all conflicts from Viet Nam to Iraq? Where is that appreciation and acknowledgment of sacrifice and duty? Where is the government that is not afraid to extend its hands in applause for those who have gone above and beyond , and reach out a hand to lift them into the family of America once again? What has happened to honor, pride, dignity and courage in our leaders, our people, our Country? Where has the beautiful dream of America gone?

As all this good news comes out, is it any wonder this occurred .......?

http://pacificgatepost.blogspot.com/2008/02/obama-social-phenomenon.html

Is the size of this disconnect expanding?

Since 1945? Guess this is just one more notch in the belt of our self-proclaimed "War President".

Actually I thought it was worse than this. Perhaps there is hope afterall.