Financial Common Sense, Have We Lost It?

  Well I have been watching all of this political and social pressure from all sides and I find myself asking what is going on.  I do really hate to speak about politics on this site as this blog is to help people understand the current real estate market and where it is headed.  The President is on TV what feels like everyday now and really tells us nothing.  Arizona wants to pass an immigration law because they are dealing with a huge illegal immigrant issue that the Federal Government has failed to deal with for years and continues to fail at addressing.  The Media seems to want to cover breaking stories such as Lindsay Lohan gets of jail today and is now in a rehab center. 

  Does anyone question all of this?  As for Lindsay Lohan getting cleaned up that is great for her but she is not breaking news.  Breaking news is stories that affect us all.  The Arizona immigration law is real news but the angle is odd at best.  For example, I personally tried to get into the electricians union local 441 for years with no luck.  I was always told we have enough people at this time and they where not taking on any new people more or less.  So based upon my own experience why are the unions trying to over turn the Arizona immigration law?  This makes no sense as there will be more people than there are jobs.  Has this scenario ever benefitted any union?  We all know the answer to that no way, no how or not ever.  Again common sense is cast aside and human emotion takes over.  Are Mortgage Brokers going to be blamed for this too?   

  So while our elected political leaders continue to act like they are on some kind of reality show.  It is time to get serious about our own financial future.  The Political front will play itself out.  Just as in the Mortgage Industry the dirty elected officials will be exposed.  Even as bad as the Mayor of Bell is proving to be, he is by far not the worst as we all soon see.  Maxine Waters is currently under investigation and I am sure she is not the only one.  Here is a link to a story that KTLA here in LA did – http://www.ktla.com/news/landing/ktla-maxine-waters,0,7948402.story

  So what is the correct course of action?  The answer is Real Estate.  Yes I understand everyone’s concerns with real estate but I believe the bottom is long gone.  Many cities no longer have Lender’s showing them as declining markets.  Yes many people still have negative equity and that is difficult to deal with on a personal level.  Personal levels generate emotional responses and we all have to wear that responsibility. 

  Here is something to think about.  The housing market peaked in 2006 – 2007 for most people.  Many home owners in this time period purchase what we will call “stuff” such as exotic cars, boats, airplanes, second homes, investment properties, took fancy vacation trips or just simply spent money.  And when they ran out they just refinanced their homes to get more money.  Well when the well ran dry there where no longer people buying up everything so simple supply and demand of homes changed.  Suddenly there was no demand and homes began to fall in value. 

  Now many people wanted the money to buy their “stuff” with little to no regard of the time bomb that was building due to this lack of vision or the what if.  So the what if issue here is the Fed’s changed the rules in the middle of the game.  Whenever there is an election year the financial players that set policy have to wait for the election to pass so they know what rules they will be playing under.  Again this is not secret.  What very few people do know s that mortgage guidelines have been tightened up which changed the rules.  Now overnight people that where approved for a home mortgage today would not be approved tomorrow for the same home mortgage, how can this be?  Well it be, think about this, if you had an adjustable mortgage and made every payment on time when your fixed mortgage rate time period was up then what?  You could have made every payment on time and have the exact same qualifying ratio’s and still not get new mortgage even if it was a rate and term or no cash out loan.  How can this be?  How could our elected leaders do this?  From a personal position how can they do this and blame people like me, Mortgage Brokers? 

  Recently the President signed into law the financial reform bill that was to protect us from another meltdown.  Well at this point the free market corrected itself and the financial reform bill has done nothing to benefit the public.  Banks will charge more for ATM, monthly account and overdrafts fees.  While they charge us less on credit card rates they will always raise the price on something else.  McDonalds should lower the price of their large Coke’s to 25 cents and charge $3.00 for a cup, lid & straw.

  I spoke about common sense a few weeks ago and it sure seems that the public masses are using very little common sense.  Does everyone understand that the Securities Exchange Commission, the people that were asleep at the wheel when the meltdown began no longer have to answer to the public about anything that they do?  They can do whatever they want to do with no fear of public pressure all do the financial reform bill.  Did the President just sign into law a license to steal from the American People?  I would like to believe that was not the plan but, yet somehow, it be.

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