May 27, 2009: Chinese finger toy a dangerous trap
To The Editor:
Honest, productive, middle-class people will be penalized by harsh taxation, so much so that they may become extinct.
This is the class that supports the ever-expanding, low-level income classes and also provides the goodies that some super-rich steal. As example; in the current news we hear tales of mortgage institutes looking for “bailout” funds that will be paid for by tax payers.
The executive of these companies are defiant in their screams for bonuses, they claim, owed to them for sterling performances. As most know, mortgage default, is one of the prime causes of today’s capsizing economy.
Here we have charlatans feeding off the dreams of folk who are searching for the “The American Dream” of owning their own home. This is not to excuse for unrealistic budgeting but to condemn predatory loan practices. One of the most pernicious aspects of “The American Dream” is its lack of responsibility and self-indulgence where others are expected to pay for the individual’s folly.
On the other hand, mortgage granters knowingly supplied mortgage loans to thousands of applicants that they, and their, superiors, knew were not viable. Translated, this means that an awful lot of people waded into debt far above their income level. The lenders did not worry about default from these unqualified borrowers. The payments rolled in for a couple of years and, after all, they had those down payments and in default they could take possession and recycle them again. That was their business and business was good.
Meanwhile the bonuses grew as they were based on sales volume. The fact that the loans were not viable was of no concern for they counted as sales and qualified for the bonuses tally. “We really increased sales for this quarter. Were is my bonus?” The whole process was a slight of hand trick. They reward their underlings by paying fat commissions. Forget the Federal Reserve. Forget bail out. None of that matters anymore. We hit the iceberg a long time ago and like the Chinese finger toy, we cannot pull ourselves back.
You always get what you tolerate and it seems Americans will tolerate anything. In this country crooks have rights, tax payers have duties. Most of the local banks kept their skirts dry and did not wallow in the gutter with the mortgage banks. That is the reason there is no need of bail out for them.
Stuart E Buswell,