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10110 cato

10110 cato

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Published by: Reduce300K on Jan 01, 2010
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01/01/2010

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January 1, 2010
A Late Rebuttal To The CATO Paper Fannie Mar and Freddie Mac: An Exit Strategy for the Taxpayer 
One of the more social aspects of this Cato Paper coming into view, as the some of thenew Fannie and Freddie changes hit the pavement of the real world, is how much we allknow and should we know that much?As Yield Spread Premiums and Loan To Values becomes the every day knowledge of  just about any one who can manage the money from their approved loan application. The bigger part of the picture is the laymen non industry specific at a glance input, that makeup just about every one else who is not a finance professional who has to make decisionsabout what to do next.As to those who take the time to read this type of mini rebuttal to the Cato Paper. It will be in Laymen terms and understanding that the true picture emerges in what reallyhappened to the US Economy that will be undisputed but only in the readers mind. Tothose who themselves are the witness to this truth, it will be before you what to do next inyour own purpose, support and vote in future issues as either; in agreement or a possibility of a turn around upset that could still save the day!The GSE, which for those who didn’t know is short for, Government SponsoredEnterprise has only one goal.This was to regulate the industry and product of finance by being a part of it.From its formation in Fannie Mae way back in 1938 seemed to be the fact, “Why it took so long to become a part of the history it simply monitored by example?”As the debts and financial products evolved, not just in what was being offered toinvestors, but the evolution of who now knows what these product and abbreviationsstood for. Along the way of the all mighty dollar, what was once a simple to do no brainer that rose out of the security of the corporation from another industry that said,“That sole owners were to become liable with their company through law suits.”All those in this evolution learned new words and meanings for words and all about anindustry that seemed easy enough if you could catch on to the numbers and the lingo, aswell as profitable if you could find a niche.The fact of the legal position of sole business owners in the late 1950’s to mid 1960’s became the American testing ground for taking the wealth of one person and makingthem pay for mistakes and other liable actions based on or around them and or their  business.Hence became the Freddie Mac of the 1970’s.A fact that may have well been needed by all the people who serviced the legalcommunity at that time, that started to learn about the big bucks of a sole proprietorswealth and in the process of the legal actions that started to be allowed into courtsseeking restitution for mistakes of a company’s owner(s)learned a new trade.
 
This fact was also a laymen fact to the finance industry, that could not be seen clearly thefuture consequence at that time, nor detect the socialist ramifications of those who mayhave had more long term expectations of how society could be moved to change itsfounding doctrines.It was by the mid 1970’s and onward no longer safe for a business owner to simply ownhis company. He had to then incorporate and share his wealth with others based simplyon the legal way the nation had turned.The fact of the GSE becomes an ever more needed fact, to be in place to mimic what parts of the finance industry was doing in being able to stay current in understandingwhat the new trends were by participation in this fact.What ever happened from then to now, only leaves the first fact of social manifestationsof those who simply were not just greedy but envious of systems of wealth and felt theyto should have a piece. In the 1970’s and 1980’s the social focus of people back then waseducation and the lack of a chance at promising futures not loans. This was as we seetoday in different subject matter that social fact of what was promised and deliveredthrough the years, as more people and more opportunity became better known about waysto finance a college education, which existed in the 1970’s, but people just did not knowhow.Like many in more recent time learned about getting a home because of people whofailed as homeowners.Armed with knowledge about school loans and grants, as well as substandard education practices that lived in low economic communities. The 1980’s to the 1990’s became theyears that just like the Yield Spread Premium and the Loan to Value knowledge of thecommon man today was then the new big thing that everybody knew to do and how todo, “Get a collage degree to get rich!”At the bottom of every year stretch noted on page 4.Was behind it a social practice and socialist undertone that continued to reek its ravaginghand on American society, in as how far could America be changed with out knowing.The one fact that to this day has saved our country and design of freedom a chance at lifenot a guarantee, was in some way the finance community and its products. Unlike thesheer will and ideal of men and women in ideals, in finance there is always a bottomnumber, as there can only be so many cookies in the cookie jar and dreams and ideal can be endless. It is in this way that the socialist temptation of one controlling the destiny of the course of another’s life that every thought and ideal that was laid abound, was simplynotes, packages and paid for in the form of the various bank notes that changed handsfrom one person to the next.The fact of the time line and how styles of lending are pretty well defined, by the year 2000 the first, sub prime I got my chance loan, went out to the masses that gave a choiceof interest only terms of either 5 to7 years.By 2005 there was a problem and by 2007 there was a looming catastrophe. That by 2008it was now seen: That most of those who under the false pretenses of bringing thissocialist style of what one thinks their owed, how much because of this looming life debtthat should be a fronted towards their pieces of the dream and then many who believedthe latter and now said, “We will not or cannot pay this money back.”
 
The socialist man and its gully creep at real prosperity had yielded its head and some howsome one paid it off in a loan became the downfall of the hidden socialist drive that manyhad missed and many thought no one even new had appeared.How the government and the finance industry handled this will of the people gone leftwas nothing short of pure genius.What should have happen in 2008 to 2009 was the interest rate for new homes shouldhave went up to 11% to 15% for conventional loans.Only those who could afford to play would pay, those who defaulted on their loan shouldhave been put in the street from their homes with in 3 months of the first missed payment.And life should have simply went on in owning things for those who could afford andwere responsible enough to do so.What ever happened next would then have been the American way.Keep in mind that it would have been a lot cheaper for this country to put every defaultedhomeowner and their families simply on welfare in subsidized housing until they couldget back on their feet as it looks today.That is the real truth. Now on the last leg as was said by this writer same topic another story of a lame horse,we wait again for the same people when we stop talking about it, to simply not pay their  bills for what ever reason and meet the end of the American dream.You own a home your mortgage is 2000 or 3000 or 4000 a month and Christmas iscoming you have 4 kids and can barely afford it.What happens?Hey I guess the kids will aside from all doing homework, watching TV and even eatingin the same one room in a big house to save on electric.They will not be getting much from Santa this year and yes the bills are paid.It can not be the American Government that pays for more Flats screens and fancyrunning shoe for boys and girls that in all cases in some states don’t even have a right tofree food stamps if their parent have lived in the streets for more the 5 years.It is the socialist America of two Americas one that is American and one that is socialistthat needs today to be confronted if any thing can be seen as getting better economically.If there were no social programs to conform socialist ideals that are also a right, but not a platform of law making.Then today there might be an America that based on the socialist ideals that have causedthis very rocky America today a civil war of the people who have no place to live, nofood to eat, no clothes on their back and no help that one day stood up.But that was what has kept America and today many in many parts of the world at peacefrom the need of the envious social nature that can often take over whole countries if itwas not held in check by social programs that in some ways guaranteed everybody had aright to shelter, food and other facts of life especially when so many had so much.Look at it like this, the regulations that are supposed to help certain home owners changethings about their loans as well as new homeowners to buy homes has rules such as for asingles family home it is something like a $417,000 to qualify. Now what if the home is $500,000 in the new guideless where this states certaintransactions can happen in relation to the $417,000 guideline.The socialist intent has locked all those with one family homes over $417,000 out of certain programs.

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