The Real Reasons the "Mortgage Meltdown" is happening

Today I read an article in the paper that stated HUD was going to implement new rules that would protect home owner's from the big bad, predatory lenders. I have been seeing this kind of drivel in the papers and on the evening news for a while now, and I have had enough.

Every good story needs a hero and a villain, and in this case mortgage lenders and mortgage brokers are being made out to be evil, predatory, foul and untrustworthy. If there wasn't a market for these products no one would use them. Now that is not to say that there aren't bad people in the lending business, because every industry has their share of pirates and crooks. These people definitely need to be driven out of the business at a minimum. But, I can attest to my experience over the past 17 years, that the people I know in the financial services are good, honest hard working people who truly care about their clients and work very hard to help them.

So, rather than be complacent and not speak the truth, which most people don't want to hear, I would like to share what I believe to be the REAL reasons of the so called housing crisis. Stand back, because here it comes, (this has been brewing for a while)

Lack of Jobs, Loss of industry, ridiculous taxes on businesses and payroll, insane gas prices, a lack of refining capacity because of weird and wacky environmentalism, food costs going through the roof, inflation numbers that are cooked to look good, credit card debts that are out of control, credit card payments that were doubled in 2007 by the governments own rules, a banking industry that could care less about the damage it creates much less be held accountable for it, repeated Fed rate increases to stop inflation (which according to them wasn't really happening but could happen), Alan Greenspan recommending adjustable rate mortgages be offered by mortgage lenders in greater numbers, a mindset that the American public is too dumb and cannot make good decisions about their own finances and therefore are not responsible for any of their decisions, and last but not least...


Drum roll please..... a government that is so out of touch with the people, it is utterly ridiculous to think they can solve the problem when they have created it. The national mottos is "In God We Trust" but somehow we are supposed to make the leap, once again, that the government can stop their own carnage and solve our problem. the truth is that they ARE the problem or at least a big part of it.

The image of the Department of Housing and Urban Development riding in on a white steed, frantically waving additional regulations to save the day, is enough to make a person wretch. Call me silly, but to me, it is tantamount to letting a convicted thief come in to your home and charge you to explain how HE would rip you off in the guise of helping you. He still got your cash.

Did I miss anything? Whew! That felt good, now on to what we must do to fix this mess.