With our economy in a downward spiral, you might think our Harvard MBA president would be the one to take charge and turn this thing around. (Oh, did you forget he has a Harvard MBA? If I went to Harvard, I would be asking for my money back right about now.) But instead of dealing with our economic crisis at home, President Bush is busying himself with issues such as fighting for Ukraine to gain membership into NATO. Uh, 'k.
Meanwhile, Fed Chairman Bernanke is left to sell the Administration's "plan" and defend the decision to assist a large brokerage firm while telling homeowners in similar crisis that they are on their own. To be fair, he did try to help homeowners by telling them again about the government hotline number. But, -- just like in December -- he gave out the wrong number. So maybe it's best if he just stays out of this whole thing.
Hello? Harvard University Admissions Office?
It is truly unfortunate that we have such an imbecile in office, when we are crying out for a leader. Many people are losing their homes due to no fault of their own, for example single women homeowners have been hit hard, and even renters are losing their homes. But we also are a nation of people who think we can have it all. Last night I did a doubletake when I saw a story on ABC News about a couple that successfully fought the bank's foreclosure on their home. Now I don't know all the details about this family or about the housing market in New York. But I do know that they made a combined income of $30,000 and they bought a $335,000 house.
You do the math.
The mortgage company did things that were illegal. They told the couple they could get a fixed loan, and then at signing changed the terms into a balloon rate. What bank thinks a family making $30,000 a year will be able to pay off a $335,000 house at 14% interest rate? That's a house payment of almost $4,000 a month! That is more than this couple makes a month! It's despicable that the bank did this.
But what was this couple, and all the rest just like them, thinking? I'm sure they loved the house, and the neighborhood. I'm sure it was hard to find something they could afford. But what has happened to us when we buy things that we just simply cannot afford? The Baltimore Sun ran a story last month entitled Affluent are also losing their homes. Am I the only one who thinks: "Then maybe they're not so affluent?" This is where we need leadership from the top, someone to look at the balance of the nation's economy and the welfare of the people. Someone who can honestly say to the housing industry: You know what? You need to start building houses that people can afford.
But our leader is in Romania, fighting a lost battle to get Ukraine into NATO. Where's a Harvard MBA when you need one? Oh, here he is: