Friday, October 03, 2008

The VP Debates: The Media Chooses, You Lose

So once again our mainstream media has weighed in with what they think is best for all of us. See, we, the American public, are too stupid and ignorant and attached to our religion and guns to really know what's what. Frankly, it's a wonder we can feed ourselves. You may think I am over the top on this, but there are countless blogs, wikis and other media out there who not only think we are wrong to support conservative ideals, but that it is the result of a mental deficiency. So the Media, in their gracious benevolence, has once again chosen for us. They have decided that Joe "I'm An Average Guy" Biden won. Frankly, I don't think either candidate did a bang-up job, but the constant self-congratulatory tone of the Obama campaign has worn thin.

But more than that attitude thing, I am truly wondering if the mainstream media has given up all pretenses of impartiality. The choosing of Ifill for the moderator was questionable considering her worshipful attitude towards all things Obama. But the way the media has chosen to ignore some very worrisome and possibly disastrous economic attitudes on the part of Joe Biden, is frightening.
To quote "Average Guy at the Home Depot" Joe, "
"we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe. That would keep people in their homes, actually help banks by keeping it from going under"

Excuse me? Banks are businesses. They run on the money they make from LENDING MONEY. That's known as INTEREST. The interest is set by the government not to exceed certain rates, but there is a great deal of leeway and consumers are more than welcome to shop around for better rates. Herein lies the problems. Congress literally forced lenders to make loans available to what is termed "underserved populations." The reason Congress did this was , according to them, to get rid of the vestiges of redlining and racism in the system. Instead, what really happened is that borrowers who could not prove income, had horrible credit history or who didn't have the financial stability to afford the lower interest rates of a conventional 30 year fixed loan, were leveraged into loans that had balloons that would rise after a certain amount of time or loans that were interest only. The stated reason for these types of loans to even exist was to help subprime borrowers improve their credit and possible refinance at better rates. Instead many of these borrowers went for the maximum amount they could acquire and when the balloons went up, they couldn't pay the mortgage. Now while this is sad, it's not like this was foisted on them by jackbooted thugs in dark alleys. These were free American adults signing contracts where all of the details are laid out in copious minutae. Every payment, every escalation, every interest rate is spelled out in writing. Why is it that only the people that PAY THEIR LOANS ARE GETTING SCREWED?

In the end, it's popular now to picture CEO's with golden parachutes getting the largest portion of the bailout. And maybe to a certain extent that's true. But what's really happening is that this is keeping the lights on at the bank on the corner and making payroll for the tellers and loan officers who don't have those cushy jobs. It's easy to blame some guy who gets away with a cushy retirement, but why is it that the media doesn't want to place the blame where it really belongs, on borrowers that didn't pay for their loans.

And this is why Joe Biden and Barak Obama should scare you silly. They have no intention of shoring up the banks for longevity. They simply want them shored up for now. They intend to allow judicial fiat to rip profits from banks. That means that people who actually put money into banks could see their interest and deposits dwindle as more people discover that paying out a loan is foolish when the government will bail you out. And what about retirees who have stock in bank corporations? They will also see their stocks value erode. This isn't the first time this has happened. My parents lost $200K when the savings and loans went belly up thirty years ago. There are still a few people around who should remember that. Unfortunately, none of them are running for president this year. Watch your pockets-these guys are NOT your friends.

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