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California Crashes. The Politicos Call for more Regulation and More Government.

California Crashes. The Politicos Call for more Regulation and More Government.

 From the Sacramento Bee, a leftist stoogery for ‘journalists’ and other leftist or Communist flotsam has produced some interesting analysis of the basic problem in California’s economic crash:

 In high-priced markets like California's, these products [those things  that increased salaries and profits] allowed people to buy expensive houses with little or no down payment and little or no documentation of income and assets. They allowed borrowers to defer payment of principal and sometimes interest with adjustable-rate loans. These loans, which began with low monthly payments that ballooned later, gave the illusion of affordability. These loans allowed people to buy more expensive homes than their incomes and credit histories would indicate.

 These loans also had the effect of driving already artificially inflated home prices even higher. What was once a $150,000 home became a $400,000 home, though nothing had changed – except the ability of lenders to use a higher-cost, exotic mortgage to qualify a borrower for a home price above their means.”[1]-- Pia Lopez: The party's over; now comes the big cleanup. plopez@sacbee.com. [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

 Okay, that is very good so now what do we do??

 The upcoming special session [of the CA state ‘government, ed] should address this key cause of the state's financial, economic and budget crisis. We need a state regulatory structure that identifies and removes bad actors, protects borrowers from predatory and abusive practices and transforms mortgage practices in the future to prevent another foreclosure crisis.”

 Clichés! Big Government Howls for your Money!

 But the role of loans for people who don't qualify for a lower-cost, prime loan should be to provide them with a loan so they can build a credit history and refinance into a conventional loan with better terms when their credit improves.”

 Tweet Tweet Alert! Government money for the ‘poor.’ Where do these ‘loans’ come from?

 More regulation is needed!

 “Rightly done, regulations should be seen as assets, making the market sound, predictable and safe.”

 This refers to the previous comment:

 Track loan performance. The best way out of the current mess that avoids a taxpayer rescue is for lenders to modify loans. But as Credit Suisse pointed out in its Oct. 1 report, "we don't have comprehensive data flagging loan modifications." That means we can't tell which firms are working effectively with borrowers and which modification terms seem to work best.

California should require mortgage servicers to file monthly reports on loans, including loan modifications and foreclosures. These lender-specific reports should be made public.”

 What ‘modifications’ are these? You want lenders to ‘modify’ their mortgages [read take a big loss here] and skip foreclosures? Yes, you do.

But he – and many lawmakers– first must get their heads out of the sand. Californians threw the party that created this headache. Now they can't just dump all the responsibility for cleanup on the feds.”

Where are the tax hike pleas? You want lenders to put out detailed reports on loans so you can what? What about the budget and bond issue? Make new laws that strangle them with the regulations they complained about in the first place? What about CRA? Does that stay in? Did you know that there are 5 million phony mortgages held by Illegal Aliens [read mostly Hispanics in California]. Did you know that Pia?

From earlier in this screed:

Through its lack of appropriate regulation, California has contributed a disproportionate share to the housing meltdown. The state has a responsibility to lead in providing a fix.”

Notice that the only thing mentioned here is government regulation, bigger government and more regulations? Give the illegal aliens a free house, free loans to spend to build up some phony ‘credit’ history, make more purchases and take the loses on the mortgages by being a good citizen? Yes.  Isn’t this like giving some Market Street sot an extra bottle of Tokay until his head clears and realizing that drinking is his major problem?

That is an example of the lunacy in California. Get the hell out of that phony containment facility for Idiots.[2] [3]

These people are crazy!  Don’t even visit this social latrine as you may catch more than just AIDS.  If you live there—get out!

rycK

 

Comments to: ryckki@gmail.com

  


[1] Pia Lopez: The party's over; now comes the big cleanup With state at heart of credit crisis, it's up to governor to propose bold steps By Pia Lopez  plopez@sacbee.com Published: Sunday, Oct. 12, 2008 http://www.sacbee.com/110/story/1305207-p2.html

[2] New York and California Descend into the Financial Maelstrom. Raise Taxes!!http://rycksrationalizations.blogtownhall.com/2008/10/08/new_york_and_california_descend_into_the_financial_maelstrom_raise_taxes!!.thtml

"Their economic demise has been predicted by this author.[2] California has no future as an organized society.[2] California is a freak show. San Francisco is now the model for the Ultimate Utopia.[2]New York is a similar ugly sister at the dance, festooned with similar social warts and open sores.[2] California is merely a containment facility for perverts, losers, illegal aliens and those who must deal with the vermin in their midst or flee the state. To save the planet, both of these states have enlisted hoards of unwashed and screaming EcoNazis who ‘teach’ us all that we are going to fry in a sauna bath that is a result of anthropogenic CO2 in the atmosphere. Europe [2][2] is now a sticky cluster of drooling socialists who huddle in the shadow of the old Stalinist Empire, wallow in fear and now must grovel before Sharia Law and indecision. These citizens[2], who managed to truncate and confound their gene pool in two world wars by selecting the alphas and killing them off in the mud and trenches along with  a nifty extra 100,000,000 dead bodies from political cleansing, left the physically and mentally inept (along with low scoring deltas) to procreate losers to guide us toward oblivion.  The social flotsam now populates the government ministries and celebrates the wild screeds and foamy fears of the idiots who now dominate the Green Party. The best example of this kind of Reverse-Darwinist genetic mistake is the English Princeling of Wails, or Flop Ears the Dolt.[2] He knows how to lose. Today, their banks have collapsed. [2] The Islamo-Fascisti may take over for the simpering Brits who lost control of their senses."

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