Dirty Deeds and there Dundircheap

I was reading about the US housing bubble and how brokers were arranging  loans for people they knew would most likely default. These banks would buy these deals and repackage them to sell to less savvy  banks. Banks like Goldman Sachs would then bet on the securities failing and make a buck from both ends. Of course, the US government in their wisdom bailed out the losers and rewarded the winners, with the bill going directly to the US taxpayer. Apparently, that is AOK , otherwise you might see the average Joe demanding his pound of flesh, but no he has his Budweiser, a football game and a ten pound chocolate bar.

Back when I first applied for a mortgage, (1992) all the major banks refused me a loan. I was the only bread winner for a family of five and my income was not acceptable for someone who was self employed. I was told by the major banks because I was self employed I needed to show an income of $65,000 dollars for three years running. I wasn't about to do that because my tax bill would have devoured my disposable income.

I met up with a smooth talking Jamaican real estate loan broker. He showed me how to cook my books and my assets to get the loan I needed. I had three boats at the time that were in dire need of repair. The broker told me to estimate their worth if they were completed. I did as he suggested.

The next step was to meet with the "loaner" , this was kept secret until I signed the paper work.
I was told to place seven hundred dollars in an envelope. When I sat down across from the loaner, I was to place the envelope on my knee under the table. I did as instructed and the loaner took the envelope and approved my loan.

This of course was an illegal act for all parties involved, but it was the best investment I made.
Rent for our family was $850, the mortgage was $960. We had a fourth child on the way so our rent was going to increase if we moved to a larger unit. Utilities were not included.

Realistically, we could not afford the mortgage, even rent was tough as I was the only bread winner. My wife and I believed that she should stay at home to raise our children and we accomplished that until the last child was in grade one. I worked mostly seven days a week, many days I worked sixteen hours, mostly I worked around twelve. I have about five years left in my mortgage and it is still a hardship to meet my obligation with four boys and two in university.

The USA real estate bubble was manufactured by greedy unscrupulous bankers and legitimized by power hungry political figures, but where does the fault lie? Who is ultimately responsible? People accepted the deal, knowing full well what they were doing was fabrications and exaggerations. I too am guilty of these crimes, but I have worked really hard, and still do, for the next five years I'll pay my debt to the crime bosses who control our lives. I signed, I agreed, I must pay.

People must learn to accept their own decisions and to understand the commitment they have entered into. To blame your circumstance on a smooth talking banker or politician because you are too lazy to challenge that notion or accept their false promises is self destructive. It is everyone's obligation to fully understand what you are buying into and what your duty is to meet out your contractual duty! 



And Now For Something Completely Amazing!

Uploaded 01/18/2011
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