Sub Prime Worries Drag Market Down

Time for a little test. You are a guy like a mortgage company with lots of cash to lend. YOu put together a funky home mortgage that starts with really affordable payments and pitch it to folks with shakey credit or low income. The bite and the roller coaster ride begins.

In the fine print you say that the payments will stay low for the first few years and the gradually escalate to real whoppers. Unless the poor people who bit on your mortgage scam suddenly get wealthy, or move into a higher tax bracket they won't be able to afford the payments. Bingo! You now hold lots of worthless paper and the deeds to a butt-load of foreclosures.

Here comes the test. Would you do this in the first place? Everyone I spoke to says, "Aw hell no!" Wonder why the mortgage gurus with the MBAs didn't figure this out.

Look, the economy is booming if you are already a millionaire, but for the working stiffs its business as usual and worse. They haven't made any real progress in their income in the past few years and many have lost ground, so it's no wonder the "sub prime" market is taking it in the shorts! In fact, unless things get back on track for the average American it will be more than the sub prime mortgages that will be in trouble.

In this new "gilded age" we live in where 1% of the population has most of the money it's a sucker bet to loan money to average Americans. The problem is without those sucker bets the mortgage companies would have no business at all. You can only write mortgages on so many multi-million dollar houses. For the rest of us, just having a roof looks good.

Wake up America! We are living in the new age of the robber barons and Bush and his minions are their flunkies. Time to clean the slate and throw them out or there will be no America left!