Do The Feds Understand The Mortgage Industry?

  I really hate it when the Mortgage Industry has the Feds hands all over it and they look to blame anyone other than themselves.  You have to go back a bit to when Clinton was in office and you will find stuff about making it easier for all Americans to buy a home.  “It is the American Dream” and we should help everyone to achieve the dream.  I am really disappointed in Congress!  Both sides have then finger prints on this and yet they have no clue what I am even talking about. 

  My industry continues to take a beating by the Feds from Obama to Frank to Waters and none of them even understand what they are talking about.  Republicans seem to be quite or at least none of them are making it on our TV’s which sadly most people get their information and take this information as fact.  At least the Democrats are talking but they are only making it worse so maybe not talking would be better?  In any case if either side talks it would be nice if they understood what they are talking about, don’t you think? 

  Below is a link of Maxine Waters asking questions of Ben Bernanke.  Ms. Waters’s questions are so unfounded that she does not even understand what she is asking.  She clearly does not understand the difference between the Fed Prime Rate and the Fed Discount Rate and how they impact Home Mortgage Rates.  If you are going to take on this issue don’t you think Ms. Waters, of all people, should have done some research on the subject?  This is a person of power that is demonstrating that she does not want to do her job.  Is this the kind of representation that we need at this time?  I think not!   

  Not to be out done Obama himself has waded into the mortgage waters and without a paddle yet again, imagine that.  Obama wants to freeze all foreclosures for twelve months or until everyone has had a chance to be evaluated for the HAMP program.  Is this good for the economy?  The answer is clear, no, no way, no how, no way possible!  The bailouts to the Banks, Insurance Companies, Fannie Mae, Freddie Mac, Car Companies and now the American People have to stop.  The country is broke!  Obama now wants to change the constitution to force his health plan upon us.  I understand what Obama is saying and he has no clue what he is talking about in terms of the Mortgage Industry.  I can only hope he know more about Health Care bit that is for another time. 

  Look the extending of unemployment funds is a problem.  For example, I know someone that receives $500 per week on unemployment and stays on unemployment because this person can only find a job that pays $450 per week.  Well this becomes a business decision that hurts the Country as a whole.  Why work when if I sit at home I make more?  This is Jimmy Carter all over again.  People are not motivated to work if they will make less. 

  If people do not work then there is less gasoline sold as people are not commuting to work.  So this means that service stations make less money so they have to cut their staffs or hand out pay cuts.  I think we all understand this.  Now less go further, this also means that less gas is needed so there is a reduced need to deliver gas to stations.  This means that the gas truck drivers begin to have their jobs cut.  With less deliveries mean there is a back log of stored gas so production is cut and refinery people begin to have their jobs cut.  There is less demand for gas so there is less demand for oil so the harbor workers begin to loss their jobs because there are no ships to off load. 

  Gas is only one item but it goes deeper.  Think about all of the support companies that go along with the gas.  The stations need electricity, water, phones, office supplies and repeated general maintenance.  The delivery truck companies all have or need DMV fees, tires, fuel, office supplies and repeated general maintenance.  The refineries need electricity, water, phones, office supplies and repeated general maintenance.  The harbor needs electricity, water, phones, office supplies and repeated general maintenance.  This is only the retail side of the gasoline industry and you can see how the impact of the reduced work commute has on the oil industry.  And all of the lost sales tax, payroll tax, social security tax and company income tax, both Fed & State, has simly evaporated.  This is real money that we are talking about and it is now gone with people are not working.  So ask yourself, why are the Feds not trying to help creat new jobs within our own county?  To say we saved or created “X” amount of jobs is disingenuous.  Without a strong economy there is no money.   

  There real issue here is at some point the bail out will stop and the job you could have had at $450 per week will be reduced to $375 per week because there is such a demand for the job that someone will work for less.  This is simple supply and demand.  So look yourself in the mirror and ask yourself, is the current Obama administration course of action good for the long term?  Be honest and you can see where we are headed.    

Stay Tuned….


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