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It's a monumental gyp!
My wise old Grandmother would have called it a “gyp.”
It’s the giant swindle that the banks perpetrated on America
countries around the globe when they loaned money in the form of
mortgages to millions of people who couldn’t afford them.
now, everyone knows what happened. The banks that loaned
the mortgage money to these wide-eyed, unmindful and deceivable
and families then took these damaged mortgages, put them in
bundles with other blemished mortgages and sold them to individual
and corporations around the globe.
Along about 2008 these individual investors and corporations
began to wake up to the
reality that many of the mortgages bundled
together and sold to them were toxic. Millions of those spurious
mortgages were phony-baloney
and the bundles that they resided in were
In one American city alone, San Diego, nearly 50,000 homes
foreclosed since the start of the financial crisis in 2008.
This number is now growing at an alarming rate.
Much of the
fuss and attention over the mortgage crisis has
been centered on the impact on Wall Street and foreign banks and lending
who bought these mortgage- backed securities. These are
the firms that received the majority of the federal bailouts. But great
has also been done to the homeowners. The fraud has affected them
because when homes are lost to foreclosure all in the community
homeowners, their families, as well as neighbors, schools, businesses
and families who live in the area.
homes lose a fourth of their value and then
surrounding properties follow suit. There are estimates that during the
past five years
almost twenty billion dollars in property values have
been lost in the city of San Diego alone.
To many of these former
current and former home-owners their
homes were their only form of wealth. The decline in property values
has caused many negative
effects – retirement, education, medical care
and other profound consequences. When property values decline
unemployment and underemployment
increase. As the municipal tax base is
effected local tax revenues decline and governments cannot address their
These challenges results in local governments being
unable to provide many basic services, like fire departments, libraries,
Many of the problems existing today are the result of the
predatory lending and other rash and shameful banking
I’ve never thought bankers were stupid folk. On the
contrary, my image of them is of sharp, intelligent and shrewd
women. I’d have to assume that their bundling of stinking, doomed and
predatory mortgages along with a few proper ones was
a plan all along.
What I can’t figure out is that they must not have figured that they
would ever get caught. The slip-up of many
The years are passing by and the men and women who are
responsible for the world-wide wreckage are still walking
I’ll add another presumption to my list, that many of these bankers and
banks are big-time contributors to the political
process – cash awards
to those who represent us in the halls of power. It will be interesting
to see if any of these individuals suffer
any penalties for the damage
they have caused a generation of Americans.
The impact of the actions of the bankers and banks
to cause monumental effects on America’s mainstream. These same people
who, a few years ago, were lending money to anyone
who could sign their
name with an “X” now are reluctant to loan money to highly qualified and
yet, they walk the streets, somehow protected from suffering for the crimes they committed.
It’s time that we learned exactly
who was behind these staggering, whopping crimes.
As Gram would say, “What a gyp!”