December 7, 2016

Financial Deception Not Recession

Posted 8/29/10

It's not about believing what I see, rather not believing what I'm seeing! Without Government guidelines set in place, Wall Street and their banks took advantage of the home owners when they teamed up with unqualified third party lenders to close as many loans as possible. It was never about the customer, only how much money and how fast can Wall Street profit. To add salt to the wound Behr Sterns took the sub-prime loans and grouped them together to form CDO's (Collateralized Debt Obligation). These CDO's were sold as safe securities rated AAA when actually they held a risky rating putting the investors at risk of losing their investment. With the money coming in faster than ever and Greenspan urging lenders to create other option opportunities other than the traditional fixed rate mortgages, all lies, deception and greed took over. 2005 - 2006 saw the worst financial decision ever with the loan program "Pay Option Negative Amortization Adjustable Rate Mortgage" founded by Quickloan Funding. With Wall Street's expansion into mortgage backed securities and financing through Behr Sterns, Citigroup and Wells Fargo, Quickloan Funding's founder Daniel Sadek had free rain over the hard working American homeowners. "Name your price" mortgage with a 2-3 year balloon and misrepresentation by mortgage brokers saw this unjust package hit an all time high. Long story short: these 2-3 year mortgage balloon loans started maturing in 2007. As time would show, refinancing was not an option, the monthly mortgage payment would increase beyond the homeowners means. According to news and media things are looking up-- but for whom? People have and continue to lose jobs, homes and credibility.

This whole financial crisis has seen our government give our tax money to banks that closed the doors on their customers and forced them out of their homes. The government then put stronger restrictions on filing for bankruptcy so the credit card issuers were able to steel every extra penny they could from the card holders. With out the intervention or support of Washington, our State and local government officials and court systems, people were wrongfully taken advantage of. Rather than working with the customer and small business owners during this countries financial crisis, the lenders shut their doors, raised their interest rates, lowered or cancelled personal and business lines of credit. This has forced businesses to close, jobs lost and families thrown out of their homes.

I, as a member of "the economy", will not accept the accusations by the Heads of State, Wall Street and Public Companies that we the people caused this economic and financial recession.

I pray to God everyday that we will soon find the compassion and support for humanity and that the Scrooges of today are removed from our society.

Life is worth living! Faith, family and friends are all the power you need to succeed and live life to the fullest.

Begin your adventures towards achieving your dreams!

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JimShaw - Wow. I have to dissect what you said. There's a lot going on there! :)

However, I can tell you one thing...we the people are absolutely partly to blame for this. In most cases; We spent without consequence. We borrowed without the foresight of how to pay it back. I did it, too. I invested heavily in real estate without really understanding what was going on. Also, I took a heavy loss, six digits, to be somewhat precise. No one put a gun to my head and told me I had to make the decisions I made. It's like not blaming the drug user for his addiction. I had all the tools in front of me to make a better decision, but chose the lure of easy financing and pipe dreams to pay it back.

I am now smarter, but thought I would get a much nicer diploma for the money I spent for that education! ;)

I now have to rebuild my wealth by starting over, and I am doing that. So be it. But, honestly, it's no one's fault but my own.

Bob Hughes

More to come on this as I re-read and re-read your first two paragraphs.

Monday, September 13, 2010 | Report this

Hello Jim, I did a google search for Daniel, just to see what the latest news was and found this.

Do you have any data that supports your statement that Quick Loan Funding created the Pay Option ARM? I worked at QLF for several years, and I'm far from a Daniel Sadek supporter, but I can tell you that QLF definitely didn't create it, and they rarely funded pay options.

Monday, September 20, 2010 | Report this

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