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Bloomberg-Clip – (BLOOM-Clip)
Jun. 22, 2007. 06:00 AM EST
Bear Sterns saying it will take on $3.2 billion of loans to stop creditors from seizing assets of one of its money-losing hedge funds.
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WOW, if this is true – honestly this is ALOT of crap! There are some real smart people, well educated Wall Street executives that knew about the high risk mortgage paper that they were buying – they knew exactly what they had in front of them.
When you follow the money trail as you do in every crime and this is another Wall Street crime, we uncover the massive greed of both high powered companies and CEO’s.
These institutions control massive wealth and can positively or negatively shape our country. In this case, they have negatively influenced our society by maintaining the ‘Donald Trump syndrome’. We have a great respect for the Donald, however, what has happened here is both rising and well established executives mortgaged the very fabric of our society by placing their short term attitudes of, how big – how much can I pump up the machine, for their self serving notoriety and stock options; at the expense of OUR American Dream and the realization of home ownership.
Now, in this article they are saying that interest rates will go up because of it. That means you, me and all the people that are going to get a mortgage, your brother, your sister, mom/dad, your kids, friends and your family will be effected.
‘I already have a mortgage, so this has no effect on me’, you say? YES it does.
What will happen to our property values? They are going to depreciate. The equity you have will be lost, it will vanish. Essentially it will be taken because of this ignorant short term corporate greed.
Many deserving people will not be able to realize the American Dream as well, all the families with the mutli-trillion dollar adjustable rate mortgages that are coming due will perish. We are having problems now, what is going to happen when the mortgage interest rates increase exponentially because of this? Even more foreclosures, more depreciation, more loss of hard earned equity
and then all of the associated industries to the mortgage industry – what happens there?
Many economists agree that if it were not for the real estate/mortgage industries, between the years of 2000 to 2003 and all the economic activity they stimulated, the United States could have been either close to or in a depression.
If we all let these companies control use like we are Pinocchio….a depression could very well happen.
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Tags: Bear Stearns, Collateralized Debt Obligation (CDO), Credit Deterioration, Hedge Funds, Mortgage Backed Securities, Mortgage News, Mortgage Video, Subprime Implosion
