Saturday, August 30, 2008

Supid Liberals, Mortgage Edition

Well, guess who is trying to become relevant in the shadow of the Obamessiah? Of all people, Anita Hill, like Crystal Mangum, is trying to get back into the public eye. Apparently her 15 minutes were not enough. http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/SingleWomenHousingMess.aspx You would never know that the idea of borrowing too much money at an interest rate you know you cannot afford would be a bad idea. While years ago the Federal Reserve and Treasury Department were demanding lenders lend more to minorities, suddenly lenders start lending more to minorities, and since they have lower credit rating, tend to have children out of wedlock, and have lower education levels that prohibit income growth, everyone is surprised when they start to default on loans. Not rocket science here, but apparently Anita Hill knows that it is a grand conspiracy to first deny minorities loans, then give them loans with the design that the minorities will fail. Aside from the fact that community groups like ACORN encouraged minorities to bet in the real estate flipping game or to buy when they could not afford it, the reality is that too many people own homes, especially in high income and cost areas like Boston. Maybe they can afford a home in an isolated rural area or Detroit where there are plenty of houses available, but in a regular market only those with good credit ratings and long term job record can buy. You can't just buy based on having one good job at one time. You have to have a record and education sufficient to get that next good job, too. Again, it is foolish to think that a single parent with three children can weather a job loss, much less one who is on their first good job. It may sound cruel, but having children out of wedlock, much less three of them, shows you are a bad credit risk. Then liberals complain on both ends. First they don't get loans because they are a bad credit risk, then they complain when they do get loans when they are a bad credit risk. Then they complain when women don't shop around and accept loans with horrible conditions. Of course, they lenders have to have higher interest rates on higher risk borrowers. Of course, it all comes down to IQ. Stupid people make stupid decisions. Notice in the story is how it says that they made some errors, but don't discuss those errors. And no one mentions greed when someone buys a $400k house and was obviously planning to flip it and ends up losing it. The best part is when these community organizers stage rallies just to get a few extra months of living rent free. In the end the person is evicted and the activists all feel wonderful about themselves and the poor borrower is left to their own devises when the activists have moved on to the next issue. And the failed borrower got nothing in the end from the activism. No real chance to solve the underlying problem of the mortgage, just stagemanaged demostrations that make liberals feel so good. What nerve too of Anita Hill. She lied about a respectable man and now she is lying about the mortgage industry.

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