You know there are times in life when you are listening to someone talk and you wonder what on earth is this person talking about. I voted for President Barry and I can not believe I was so duped. We all want change but we all have a serious realization coming. President Barry said today in Las Vegas that the reason there are so many home foreclosures in the state of Nevada and Las Vegas specifically was because Mortgage Companies wanted to make a fast buck. What on earth are you talking about! Let’s break this down.
Yes there were many people in the mortgage industry that made a lot of money selling mortgages to consumers, but everyone forgets that the Banks made record profits. President Barry is falling to tell us that many real estate agents & home builders made huge amounts of money. There were so many people that flipped houses that the Discovery Channel even made a show about it called “Flip That House” and at the end of each show they showed us the money each person made. I even watch an episode just last weekend. The final piece of the unrealized puzzle is that the consumer’s themselves purchased properties with creative financing that they knew going in they would have to refinance or sell at a later date.
For those of you that do not know real estate is a risky investment in terms of return of investment. Most people do not realize that real estate and stocks are equal in terms of investment risk. My Mom used to tell me that you can not live in your stocks. Well if your income stream changes then you can not live in your house either and this is what we are dealing with today.
I have spoken many times about the lost equity issue and it’s affect on the economy. I find myself wondering if any of the current federal officials’ have ever taken an economics class. Instead of money we should contribute a SimCity computer game for all of Congress including the Whitehouse. Maybe Mr. Gibbs can get his 12 year old to tell him how SimCity works and he can explain it to Barry & Joe. Mr. Gibbs, once you understand SimCity please do not waste anytime on Nancy or Harry as they both need to go and go now.
Here is the deal, until the Fed’s level the Prime Rate and stop bailing out these companies “to big to fail” we can not even begin to address the lost equity issue. The Mortgage Industry has been under a Microscope, as it should be, maybe it is time to look at the other pieces of the economy puzzle.