August 13, 2007 at 12:06:39

Bush's Booming Economy -- For The Rich

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By Sheila Samples (about the author) Page 2 of 2 page(s)

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According to Walrath, there are four sets of losers in this housing meltdown...

~~Those caught with the homes they bought for flipping purposes are not going to be able to find buyers. They are going to lose whatever they have invested, plus whatever mortgage payments they make. It may be cheaper for them just to walk away.

~~Those who own homes will see the value of their houses go down because of the current oversupply due to overbuilding when interest rates were lower and people were buying homes with little or nothing down with the idea of flipping the houses as soon as possible.

~~Those who bought homes with variable-rate mortgages are having trouble making payments because those payments keep going up, and there's nothing they can do about it. Many did not even realize they had such a mortgage. Millions are going to lose their homes.

~~And then, there's the murky many -- the banks and the hedge funds which ended up with mortgages which were used as collateral for junk bonds which ended up as holdings by French and German and English banks, not to mention those in this country.

"This is the dog that worried the cat that killed the rat that ate the malt that lay in the house that Jack built, and we ain't seen nothing yet," Walrath says.

"When it comes to saving the rich from losing money, no expense will be spared. Actually," Walrath mused, "the economy is good -- if you're rich. For the rest of us, there's not much to write home about."

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Sheila Samples is an Oklahoma writer and a former civilian US Army Public Information Officer. She is a regular contributor for a variety of Internet sites.

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