Thursday, May 01, 2008

The Forgotten Victims of the Sub-Prime Crisis

According to the National Coalition for the Homeless, more than two million foreclosures occurred in 2007 alone, that is a 75% increase from 2006 to 2007, 149% increase from 2005, and exceeds the projected number of foreclosures for both years, 2008 and 2009.
It is now estimated that in 2008-2009, "2,258,457 more homes will be lost to foreclosure in the United States".

These statistics and many other factors fully explained in the foreclosure report, provide the grounds for believing the existence of a strong link between the foreclosure crises and increasing homelessness in communities around our nation.

The media seems to strongly suggest that the foreclosed upon are as much to blame as the lenders and the industry at large. This is not true for a number of reasons. The first one is the deliberate, needless complexity built into disclosing the terms of the mortgage contract itself, a huge problem (financial contracts) through the financial industry as a whole. The second one is apartment foreclosures. Numerous renters are suffering and sometimes homeless due to the actions of people they knew nothing about and had no control.

"People don't think of low-income families in apartments being hurt by the mortgage crisis, but in many ways, they are the most vulnerable -- and the least to blame when they get tossed out." Rev. John Estrem, CEO of Catholic Charities

There is no doubt greed and dishonesty characterized a certain percentage of the people who agreed to the terms of these loans, however, a much bigger percentage ended up as victims of a systemic greed and dishonesty that gradually infiltrated the infrastructure that supports and protects our financial system from corruption.

Once again, those we profess to support and honor are once again the group of people who suffer the most from the injustices intentionally incorporated into our prevailing social order as the housing crisis is hitting veterans especially hard.

"A recent Pentagon study has shown, military personnel are particularly vulnerable to predatory lending, and the financial stresses for many military families has been well documented". - Ellen Harnick, Senior Policy Counsel, Center for Responsible Lending

The people who get paid to understand how the housing and financial markets work not only dropped the ball, they greased their hands with a pound of butter before the game started. The integrity of the lending and investment banking profession has reached an all time low.

These mortgage foreclosures are hitting our communities already facing an uphill battle due cutbacks in federal programs designed to assist American citizens bear the weight of hard times in order to prevent them from sinking to a point of no return.

Meanwhile, our government rushes to the aid of the corruptors and corrupt, - Bear Stearns and all the legislation passed to facilitate the greedy agendas of faceless corporations and heartless hedge fund managers - the perpetrators of this financial fiasco, to prevent our economy from crashing. We, the people must demand, at the very least, the same concern for the innocent citizens paying the steepest price and safeguards put in place preventing the greedy, unethical behavior of a few from effecting the security and livelihood of the many.

1 comments:

Anonymous,  00:01  

My brother falls into this category.

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