Dividing Into "Them and Us" Keeps Housing Market Falling and Bankers Fat

MOST POPULAR ARTICLES

CLICK HERE TO GET COMBO TITLE AND SECURITIZATION REPORT

CUSTOMER SERVICE 520-405-1688

Editor’s Comment:

Living lies is a way of life in American politics. You take the truth, turn it on it’s head, and put out myth loud and often and it is often eventually taken as true — even those who are hurt by the lie will come to believe it if they hear it often enough. That is how most borrowers feel guilty about the mortgage mess and why they are willing to pay more for their homes and loans than the property or loan product is worth.

The Ayn Rand controversy is over before it begins. Rand’s writing is largely misinterpreted in my opinion but it did serve as the basis for maintaining “them and us” mentality — largely to our detriment as recent facts clearly disclose.

The myth grows as these red voters convince each other that the people in the blue states are ruining the country and siphoning off all the hard earned money of people who think government should stay out of their affairs. It is in the red states that people insist on keeping the government out of their Medicare without realizing that their media and educational system have been dumbed down to the point where they don’t realize that Medicare is a single payer government run healthcare system funded with taxpayer dollars. Taking government out of Medicare is the same as taking turkey out of thanksgiving.

The fact is that blue states have consistently produced more federal tax revenue than the red states — and specifically more than the blue states get in Federal expenditures. Conversely, the red states produce less revenue and take more Federal expenditures than they pay. These states have been subsidized for decades by the blue states who even allow taxpayer dollars to be spent on such controversial items as creationism in textbooks. In plain terms the blue states pay the expenses of the red states and without the blue states the red states would collapse into financial chaos. People in blue states have no objection to this arrangement because we are all one country. People in red states object to this arrangement because they are exposed to misinformation.

In similar fashion, mortgage fraud is being defined in terms of those who cheated the banks out of money by a variety of deceptions. We can all agree that those who practice fraud should be punished and their ill-gotten gains should be distributed back to the victims in some fair way. But the big mortgage fraud came FROM the banks and never happened TO the banks because they first defrauded investors and THEN committed fraud on the American consumer, taxpayers and the budgets, pension funds, state and local governments.

We can all agree that when a borrower actually deceives a bank into thinking he has more income and more assets than is the truth, that borrower should suffer many consequences. But the facts, like the blue state subsidy of red state self-reliant citizens, show another living lie at work here.
The facts show that the banks working through mortgage originators misrepresented the income of borrowers usually without the borrower even knowing the application had been changed. And the facts show that the consumer and investor lender relied upon appraisals that we’re dictated by the banks instead of being dictated by reality. So the shoe is factually on the other foot again. The lying and cheating was done by the banks.

Somehow the banks have spun the myth that the borrowers should be punished for wrongdoing even if the banks and not the borrowers were the wrong doers.

The convoluted logic for this injustice comes from the idea that it is just fine for the red state to be supported by blue states whom the red states say are draining America of its future. The bulk the mortgage fraud by the banks happened in high density population centers which means primarily blue states or Blue parts of red states.

By playing the red state living lie for all it’s worth, the banks have convinced many people that by punishing the banks and returning the Ill-gotten gains to the pension funds and homeowners, these blue state Free loaders will be getting another windfall at the expense of the red state. In reality, the reverse is true. Money that would otherwise go to revitalize the economy of all states — red and blue — is going to the banks because we don’t want to let those blue free loaders from getting anything.

And that is our story. The facts go one way while the lies go the other way. Right now the lies have it. Motion passed – we will continue to punish the borrowers for the bank misdeeds no matter how much it hurts the country — or how much it diminishes the ability of the blue states to continue subsidizing the red states.

Ayn Rand Worshippers Should Face Facts: Blue States Are the Providers, Red State Are the Parasites
http://www.alternet.org/visions/154338/ayn_rand_worshippers_should_face_facts%3A_blue_states_are_the_providers%2C_red_state_are_the_parasites/

Tags: 60 minutes, AHMSI, appraisal fraud, attorney general, auction fraud, Chris Koster, credit bids, DocX Indictment, foreclosure fraud, FORECLOSURE SETTLEMENT, foreclosures, forgery, housing market, housing prices, investors, linda green, LPS, Missouri, mortgage fruad, mortgages, Robo-Signing, settlement, strategic default, Wells Fargo
Posted in bubble, Corruption, Eviction, securities fraud |