A POSSIBLE SOLUTION?

July 6, 2009

We've reported that if politicians continue to embrace the same mindset they've grown to expect, our economy is destined to collapse. We may have one hope, but it will take a total reversal of their current game plan. Another "stimulus package" is probably just around the corner. If it comes to be, it MUST be completely devoted to rescuing homeowners and the Feds must mandate that mortgage companies reduce the principal owed on ALL properties to reflect the damage our politicians have caused to the real estate market and our general economy.

The financial institutions have gotten theirs - up front, as "rescue funds", as insurance settlements on defunct CDOs. Now, it's time they finally take the hit that they deserve. As long as financial institutions are allowed to ALWAYS win, the game is, shall we say, FIXED!

The CEOs and senior staff have taken 100's of millions of dollars in salary and bonuses just in the last few years. During that period, they were greedily selling toxic mortgages, packaged and fraudulently rated. These are the very investment instruments that would have brought down their little scam, if not for the Treasury Department, the Federal Reserve and Congress "rescuing" their companies.

What did this "rescue" accomplish? Well, it allowed the financial institutions to continue to pay huge salaries, bonuses, take lavish trips and junkets - the same old game continues.

Now, homeowners must demand that the Federal government turn its attention to the real problem. Mortgage companies must be dealt with, quickly and harshly. Most mortgage companies fraudulently entered into contracts without warning buyers that their mortgage would most likely be packaged with potentially "toxic" mortgages and sold as investment instruments. Not only should this scenerio have been highlighted, but the huge risk potential should also have been stated.

By not informing consumers of this potential and the very real risk involved is outright fraud. Why isn't anyone investigating the very reason our economy has tanked? Is there an honest politician willing to take on this challenge? It is almost assured, that if an elected official would finally take the side of homeowners, they would find themselves re-elected, while their greedy collegues are scrambling to find a new scam outside of government.