A number of Wall Street insiders and conservative politicians who support them as vital to the struggling, slowing down economy have started to beat a curious drum as the reason why Wall Street tanks an average of 300 points daily and the major financial institutions like Lehman Brothers, Merrill Lynch and other have shuttered their doors. They are blaming the homeowner and the policies implemented in the late 1960s to answer the injustice of people of color not receiving the same loan opportunities or seeing things like banks actually spring up in their neighborhoods.
It is not the greedy loan officers, the shadowy mortgage brokers, the unethical lawyers and appraisers or even the get rich as soon as possible hedge fund billionaires who actually created the idea of "Credit Default Securities" in the first place. No they are not to blame -- it is the ignorant, greedy, shadowy, unethical middle class family that took a gun into the bank with a note that read: "give me a loan I can't afford or I will shoot everyone in this damn place!"
Yes these violent offenders who wanted to obtain the American Dream of homeownership like they were told was possible are to blame. How dare they rob they piggy bank! How dare people like 90-year old Addie Polk! Who is Addie Polk? Mrs. Polk is a 90-year old woman who facing eviction from the home she lived in for 30 years decided she would shoot herself in the chest.
She became the home's sole owner in 1995 when her husband died and since then then took out a mortgage loan in 1997 and refinanced several times in order to pay bills. Which bank did Mrs. Polk lean on in her time of need -- Countrywide Home Loans. Yes the same Countrywide that is being investigated in more than a dozen states for pushing bad loans and engaging in predatory lending in minority and low-income communities. Countrywide filed for foreclosure last year, and Polk's home was sold to Fannie Mae at a sheriff's auction in June. Deputies were to escort Polk from her home Wednesday when gunshots were heard inside. She was found laying on her bed bleeding to death.
It shouldn't be homeowners like Addie Polk shedding blood, it should be these piggy banks who wanted nothing but more ante for the till to bundle and sell off to Fannie or Freddie -- with a nice bow of a good credit rating by S&P on top.
In interviews and court documents, 19 former employees describe an atmosphere where the
drive to close loans ruled even when IndyMac's own risk experts recommended against
approvals. Most of the ex-employees who provided information for this report were mortgage
underwriters who were supposed to be making sure borrowers could afford the deals. They
say their efforts to do their jobs were hamstrung by higher-ups.
CRL details in various reports how even potential homeowners whose credit ratings were good enough for a stable, lower-interests,
low principle loans were pushed into adjustable loans that would balloon in six to 12 months and keep doing so annually.
So what is the conclusion to all of this. Congress has passed a $700 billion dollar bailout -- uh rescue -- plan to Wall Street to try and
take out of the market many of these bad loans. Many economists don't expect it to have any real effect on the ground the so-called
proverbial "main-street." In fact, CRL has put out a new foreclosure report that shows that their prediction of how many people will
lose their homes in 2008-2009 will double from its original forecasts of 1.1million to roughly 2.2million.
Back in Akron, Ohio Addie Polk is recovering just fine. She even called her stunt silly and crazy. But the good news is that she will
actually be able to stay in her home. So it seems now that the piggy bank is full of taxpayers dollars, these two million plus homeowners
should go out and buy guns. Because ff critics who fault poor, minorities and low income home buyers just looking to get ahead are going to continue
the blame game finger pointing -- they will probably need them to really go out and rob the piggy bank or follow Addie's example.
Kapitol Hill publishes a new commentary every week, Please feel free to leave a comment and don't forget to check back next week for
a new installment. NEXT WEEK: The (Provisional) Ballot or the Bullet.
Recent Comments