By now most everyone has heard about the rotten day on Wall Street. This is yet another manifestation of the giant turd that got thrown in the housing market.
Lehman Brothers declared bankruptcy. Everyone wants to be #1 in business, sadly not the #1 bankruptcy... ever. It was only a matter of time. For those of you who have been under a rock, here is how it went down:
Gullible Bright Eyed Family Seeks American Dream Home -
The Mc MansionGreedy Unscrupulous Helpful Friendly Real Estate Agent shows houses above the family houses above their price range. (Watch the
irritating informative
House Hunters they do this all the time)
Family goes "How beautiful! We must own it! But how can we?"
"Oh I Can help!" - The
soulless mortgage broker chimes in. We can give you an
ARM at a
SUPER LOW RATE!"Since the housing market only goes
UP, your house will be worth
WAY MORE in 3-5 years. That's
FREE EQUITY. Just refinance in 5 years and you'll probably get an even better rate since you will have so much more equity. Just sign here! x___________________" - the
evil mortgage broker smiles
with crocadillian glee.
Bright Eyed Family
DELETE:"Wait we can't really afford this! Why didn't we look at places we could afford? Can we afford utilities? What if the market drops? What if rates go up? Why do you look as though venom may drip from your secretly hidden fangs? AAARRRGHHH RUN!!!" REPLACE: "We'll Take it! The American Dream!!!!"
Later that month (following closing of course).The
soulless mortgage broker meeting " Holy crap! I can't believe all these people are buying this line of bullshit! We have to sell these loans to someone and get out of it before they start missing payments.
Enter the MEGACORP DEBT COMPANY:
"Sure we'll buy these from you... things are going up, money is cheap and we'll take these off your hands. They're legit right?"
"SURE!"
"Sold!" (stupid little company, now we get free money! Better yet, look at the FAT BONUSES I'm going to get!"
Months-Years LaterBright Eyed Family "Holy crap what do you mean we can't refinance! We can't afford this new rate! Housing values go up not down! How could our house be worth less? Not eligible for a new loan? Sell!!!! What do you mean everyone else is selling?? I'll drop my price! Nobody is buying? Foreclosure?? Nooooooo!"
MEGACORP DEBT COMPANY: "Uh... all these good loans are going bad and we're out of money. What's the deal?"
From an un-named non-extradition treaty island in in the Caribbean:
"SHHHHHHH CLICK
I WHOOOOOSHHH
can't CLICK
hear you WHOOOSH CRACK
bad signal CLICK"
Words to the not-so-wise:
#1 If it sounds too good to be true it is.
#2 People will lie, cheat, steal, or kill for money. Beware people whose sole motivation lies in your wallet
#3 If you can't afford something, don't buy it. Debt is like metaplasia, it might not hurt you, it might go away. Then again, the state that it leaves you in may lead to a cancer that eats you alive... much like it has my portfolio.
Lehman Brothers, Finance, Wall Street, portfolio
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The Careful Application of Lead Cures Rogue Hominid Infestation
There are a lot of diseases out there. Most of them you can't see. Billy Dean Riley was a walking, talking, screaming pile of human waste that was a disease on society.
There are a lot of people out there that believe that gun owners are sitting in their houses, armed to the teeth, waiting for someone to come through the door that they can shoot. This could not be farther from the truth. The woman involved in this story had no desire to kill this man. She stated, multiple times, that she didn't want to kill. When the time came and she had to defend herself, she chose to survive.
Posted at 10:26 PM in Current Affairs, Heroes, Social Commentary, Villains | Permalink | Comments (1) | TrackBack (0)
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