Wondering Why We Are Bailing Out Those Banks?

Could it be a case of the Bush Administration looking the other way while all kinds of scamming was going on? Let’s see... Bush I is in charge when the Savings and Loans needed to be bailed out, and now Bush II is in charge when the banking industry needs to be bailed out. Does anyone see a pattern here?

Well, if you don’t live in South Florida, you probably have only heard the official media cartel story that all of these loans were taken out by people who just couldn’t afford them. Rarely is there any mention that these people were taken advantage of, and almost never is there any mention of illegal acts by those in the banking industry.

Fortunately, the Miami Herald has done the investigative reporting that the media cartel’s "journalists" failed to do. Read it and learn about the scamming allowed by the Bush Administration in Florida. Scamming that it looks like we will be stuck paying for once again, unless enough members of Congress are afraid of getting tossed out of office that they actually stand up and do what is right for the country for a change.

Miami Herald – Bad Mortgage Brokers Ran Wild, Florida (Government Finally) Admits "mortgage fraud skyrocketed during the most explosive housing boom in state history. Today, a quarter of all reported fraudulent loans across the country are for Florida properties."

Miami Herald – Mortgage Fraud Investigation Part 1 The Brokers

Miami Herald – Mortgage Fraud Investigation Part 2 The Originators

Miami Herald – Mortgage Fraud Investigation Part 3 The Probe

See what happened to an honest mortgage broker who exposed fraudulent practices by attorneys for the mortgage industry at http://www.woodwardlaw.com/

If you guessed that his whistle-blowing was ignored, you are correct, but it’s even worse than that. He has been falsely charged with attacking one the attorneys that he reported for being involved in the fraudulent schemes and for committing perjury. Evidence has disappeared from his court file, and the bureaucrats in black robes are ignoring the facts and the law to shut him up and teach us all a lesson.

This will be discussed on the Rule of Law radio show tonight, Thursday, September 25, 2008. The show airs live from 9:00 to 11:00 PM Eastern. Listen live at http://www.wtprn.com/listen.shtml or check out the archives at http://mp3.wtprn.com/Kelton08.html

I’ll be on the show also. Like most of you, I’m still wondering why we are bailing out banks and doing little to nothing for families facing the loss of their homes when we could concentrate on bailing out the families facing foreclosure. This plan would save the loans, and therefore, bail out the banks.

Naturally, it seems that our leaders are more interested in just saving the banks while millions of American families are thrown out in the street. By the way, does that strategy actually avoid an economic crisis or does it cause one which is even worse? Let’s think about that: millions in the streets unable to provide shelter for their families or millions in their homes with some relief from the outrageous rates that they were stuck with after being promised the ability to refinance before they had to pay those high rates.

Here’s an idea to save the world from the latest Bush economic crisis:

1. Freeze foreclosure proceedings until January of 2009 while reclassifying loans currently in default as not being in default thereby relieving the urgent need for banks to obtain emergency capital.
2. Roll back all interests rates on the mortgage loans issued during the Bush reign to 5.5%, a reasonable rate of return on mortgages.
3. Make the banks eat their excessive fees and foreclosure "costs."
4. Add the reasonable payments that were missed to the balance of the loan.
5. Allow borrowers who can pay the new monthly payments to stay in their homes.
6. Set up a fund to help those who have already lost their homes due to the banks’ predatory practices and clear the foreclosure from their credit histories.
7. Prosecute those in the banking industry and government who allowed these fraudulent lending practices to deter further bad behavior.

Of course, that doesn’t mesh well with the apparent plan to impoverish our country while taking a few hundred billion more for those who caused this mess.