RealEstateRaves

I know there are lots of opinions about President Bush’s rescue plan.  Some support it [like yours truly] while others believe it is a big mistake to let borrowers off the hook.  Which ever point of view you take…consider this….the mortgage industry, wallstreet, and the millions of extremely well educated and bright professional loan and mortgage experts couldn’t or didn’t predict the implosion that occurred and is occuring.  While these people are bright enough to have conceived of this innovative and clever way to eak out billions of profit dollars  by lending to the sub-prime market…..I don’t think they did.  Instead the greed factor that drives wall street was at work again and participated in this tradegy.  While it lasted many people became grotesqely rich at this clever and seemingly innocent approach to lending.  When the smoke cleared many of these sophisticated professionals were safely elesewhere leaving these loans in the hands of people like Country Wide, Washington Mutual, and many, many other mortgage brokers now out of business.   

My point is you can’t compare the collective intelligence of the mortage industry and that of the individual borrower.   Borrowers became intoxicated and significantly influenced by these extremely bright folks and took the bait and borrowed money at interest only knowing and believing that their properties would continue to appreciate.   It’s not a surprise to me that the average guy and gal would fall for this ploy.  

I applaud President Bush for recognizing this and putting together a rescue program to help these people and at the same time helping us all.   After all who among us believe they can really compete with the collective intelligence of wall street and all those mortgage bankers?

Joe Parsons

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