Jeanette in THE ACCIDENTAL BANK HEIST can tell you all about their rules. She will tell you that 80% of the foreclosures in this country didn’t have to happen. The government got into the act and the banker’s laughed all the way to the bank.
Banks bundled and sold their loans to investors on Wall Street (many of them very bad loans). Why? Because our illustrious government told the banks to soften the rules for qualifying. Why not? Our government guaranteed them with taxpayers money.
The loans the banks had on their books they could have dropped the interest rates with a computer program. The sold loans they could have looked at individually and rewrote new loans for those who were CURRENT with GOOD paying records. The values had dropped so they would have had to waive government guideline criteria. SIMPLE.
But the government wouldn’t guarantee them. they wanted the criteria correct, which was impossible with the value drop. See how the government messes things up? The banks had no incentive to make uninsured loans so they did NOTHING, WHICH BY THE WAY THEY ARE ALL GOOD AT.
Bankers have always known they could loan 100% to an honest client. Character matters but the banks and the government who both have little character forgot that piece.
Jeanette talks about her 401K being trashed, remember, Wall Street is all of us who have a 401K. They hurt every person in this country that was doing the right thing saving for their future. And what about the retired people who can’t make it again? They turned a SOLVEABLE problem into a Financial Crisis we are still trying to recover from.
Real estate is a long term investment but it does recover. Most people love their homes and would have stayed if their payments were reduced.
Jeanette saw the bank robbers who ran into the bank and held it up. She also saw the people at the top who were robbers in a “legal” way. Let this gal in a pink suit with leopard shoes tell you their diabolical secrets.
They say it’s business, but it wasn’t good business. Politicians don’t understand finance and they are easy to bamboozle. If they had done the right thing by their good clients, this economy would have recovered four years ago. Most American’s are honest, they forgot that. Jeanette will tell you, figures don’t lie, but liars can figure!