The so called saving and loan debacle was the result of the Federal Congress under the whimsical hand of the National Democratic Party changing the rules for chartered savings and loans. These rule changes dramatically altered the carry loss forwards for amortizing purchased assets that contained amortized losses.
Of course to acknowledge that the federal Congress whose majority party was in the hands of the National Democratic Party willingly and knowingly chose to arbitrarily change the statutory rules for the regulation of Savings and Loan in 1989 would ridicule the media barrage that said savings and loans failed to be accountable.
The regulatory rules changes dramatically altered the accounting rules which were established in 1981, that allowed the Savings and Loans to amortize the losses of merged institutions for forty years. When those accounting schedules were changed by the will and whim of statutory fiat in 1989, hundreds of formerly financially sound savings and loans that had acquired failing institutions in the 1980’s were overnight declared insolvent.
Imagine being in the middle of a coming Super Bowl, it is third down and one, two minutes to go, your team is down by seven, and the ball is on the opposing side’s 30 yard line, and the Commissioner of the league sends a bulletin that the first downs will NOW be granted every twenty five yards and the clock now reads 15 seconds.
This allegation of a subprime debacle is the triumph of nonsense over responsibility. No one forced the borrower to accept the low up front multi year option mortgage rate (Adjustable Rate Mortgage) that at a definitive time would be marked against a benchmark level plus a mark up. These so call subprime loans represent less than five percent of the mortgage market. Imagine five percent failure overwhelms the other 95 percent of borrowers that stand strong. Since when is 95 percent considered a loss? Welcome to the mad lands of the administrative state, where the falsities as promoted by the elected and appointed sycophants populating the political bureaucracy, who all shout from their public forums of discontent claiming that their lie is the truth.
So what does the major media, and compliant sociopath’s occupying state and national elected office offer? Hysteria and the presentment of a crisis that is the direct result of a species of borrower watching a good decision go terribly bad. So who is held accountable? Of course those “predator” lenders, who preyed on who? A borrower who as a graduate of the public fool system is a financially dysfunctional literate, who does not understand the point in the mortgage contract that specifies the low ball interest rate, may rise dramatically during the adjustment period?
The truth be known, this public foolishness promoted by the usual suspects of the Political arena substantiates that the major media believes that all Americans are dolts, who froth at the mouth when said media boldly exposes the “crisis” of borrowers who have no understanding how an adjustable rate mortgage adjusts.
Truly this shall be a mad land where the foolishness of the few is the crisis that is used to empower the charlatans, thugs, and thieves who populate the elected and appointed political bureaucracy of This State, and it’s Favorite Uncle.
Within the public ministry of the elected and appointed political bureaucracy are Marxists whose desire is to empower the State's secularist reach, which is managed by presenting their socialist idioms behind the smoke and mirrors of misdirection promoted in the major media whose goal is to rape and pillage all in America under the color of their legislated whims used to "protect" YOU from "predatory" lenders.
Get real, wake up, and down that robust cup of coffee, whilst frying up your potatoes in good down home country lard.
Leave that transfat at the counter, along with the soymilk, and Viagra, then you will have the clarity to comprehend what our fore fathers understood, the pursuit of life, liberty and happiness is ordained by natures’ God, not some pencil necked bureaucrat creating a false crisis to empower its elected mentor so both may sup upon the public dole...