I recently heard the news that certain banks agreed to a settlement with the federal government regarding mortgage loans that were sold as investments. When the banks realized they were granting loans to people who did not qualify, in order to protect assets of their investors, these unqualified loans were sold as derivatives.
Although the banks are being targeted as the evil devil, it is not the banks that have caused this entire recession it is Sens. Christopher Dodd and Barney Frank when they forced banks to make loans to people who did not qualify. These senators based their legislative hammer on the right of every American to own a home, whether they could afford the mortgage or not.
Unfortunately, many of these mortgages failed, since the owner could not afford to pay the mortgage. As president and general counsel for a property management company, I can vouch, based on the inventory of community associations my company manages, that the older communities have had very few foreclosures. However, the newer communities, developed during Dodd/Frank era, have major foreclosure issues.
This is a perfect illustration of government interference in private industry. The government cannot balance a budget, but private industry needs to consider balanced budgets, etc. When will the voters of this nation finally wake up and realize the incompetence of those politicians who bend down and kneel to political interests so they can be re-elected versus exercising fiscal responsibility?
As voters, we need to say no to unqualified politicians.
Steven R. Heuberger