Posts under ‘Economy’

The problem that began with sub-prime loans has now spilled over into the rest of the mortgage market, as the economic downturn has led to massive lay-offs, with the result that many formerly credit-worthy people are now unemployed and cannot make their mortgage payments either.

So, the relatively small numbers of sub-prime loans that go bad, because the borrowers were not credit worthy to begin with, can bring down an entire world’s economy. We’ve proven that.

Rather than place blame on the politicians who required that loans be made to those who were not credit worthy, we blame the lenders themselves.

There was our new president on the news a couple of days ago providing a glimpse of the wonderful things he’s going to do to…, ummm, for the American people. He wants to ensure that every kid can go to college, that everyone has health care and — here’s the kicker —  “…that everyone who wants […]

The presidential election just past was all about the economy, nothing else. The Iraq war, the Afghan war, terrorism — these were all but forgotten by most voters once the economy nosedived. But despite the economy (or because of it) John McCain could nonetheless have won. Unfortunately, he was too busy being John McCain. John McCain, […]

It’s simple, really. The poor don’t have the trillions needed to run the gargantuan Federal government. Neither do the rich people. If you took all the income earned by every “rich” person, it would run the government for a few weeks at most. ALL the rest of the money that government spends comes from the vast middle class — the people for whom Obama says he will cut taxes — even as he proposes a trillion dollars in new spending.

We had a mechanism in place to prevent people from over-extending themselves financially. It was called credit-worthiness. If you couldn’t afford a $300,000 loan, lenders would not give you a $300,000 loan.

Connect the dots, people. “This mess” was caused by government-mandated replacement of credit-worthiness with political correctness. Before the Democrats, and in particular, the Clinton administration, changed the rules, there was no sub-prime mortgage problem. People who could not afford loans were not given them.