Regarding Those Bad -- 'Trojan Virus' -- Mortgage Contracts

B. Smith,

Sorry if both my previous responses to you have been a little long-winded (and expanded for public consumption).

Regarding one of your points, if you know for sure that the idea for all of those 'low interest on the front end; high (hidden, trojan virus) interest rates on the back end' mortgages' for people who couldn't afford the houses they were buying, especially when the interest rates went skyrocketing up -- if the idea for these toxic mortgages came from either the White House and/or the Senate -- then, yes, that would take a good piece, if not all, of the responsibility and accountability for this decision off of Wall Street, and put it right into the laps of an 'over-regulating' Government. A manipulation of the 'free market' if you will. But the question also has to be asked: 'Who put those trojan virus interest rates into those bad mortgage contracts?' This clearly, was not an act of 'altruism' or 'benevolence' -- of trying to get more 'riskier credit' people into a situation of being able to own their own homes to make their lives better -- but rather an act of unbridled narcissistic manipulation and malice in terms of 'interest gouging' these people after they had settled into their homes for a few years -- and making their lives 'sheer hell'.


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malice
One entry found.

Main Entry: mal·ice
Pronunciation: \ˈma-ləs\
Function: noun
Etymology: Middle English, from Anglo-French, from Latin malitia, from malus bad
Date: 14th century
1 : desire to cause pain, injury, or distress to another
2 : intent to commit an unlawful act or cause harm without legal justification or excuse

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So the second part of the question here becomes:

Who was responsible and who is accountable for those 'gouging, hidden trojan virus, high interest mortgage contracts'? Did the idea of this type of toxic, gouging contract come from Washington? I highly doubt it. That smells of rotten Wall Street Bankers...

To sum up...

1. Government manipulation to get more 'higher risk' people into their own homes: Call this 'government over-regulation';

2. Wall Street Toxic, Low Front End, High Back End, Gouging Hidden Trojan Virus Mortgage Contracts: Call this 'government under-regulation' of Wall Street Bankers.



-- dgbn, Jan. 21st, 2009.

-- David Gordon Bain