Hi Susie,

We really enjoy your show and watch it regularly. On the question you posed, I would vote for Bob Rubin for Treasury Secretary, based on the excellent job he did for Bill Clinton back in the Nineties, under tough conditions at times. None of the people you mentioned have had prior experience in the job, and I believe Bob Rubin or Larry Summers could do a good job there.

Ron.

There is a lot of stuff going on out there and I believe the people should see what is really happening. As everyone thinks, it is something that it is not.
This is really upsetting.
Lets see if I can break this down in the most simplest form possible.
• Banks/lenders create exotic lending products and offer is to the public and business areas
• They profit largely from this as well…. (So where’s the money?)
• They turn around and blame the subprime market for this.. how interesting!
o They paid brokers MORE money to put people into these subprime or exotic loans that could have received fixed rate or no home at all!
o They avoided using any common sense with the loan papers for staying within the basic terms of a loan
• They turn around and sell off notes and securities to investors all over the globe to make even MORE money.
• They buy CDS’s to protect themselves, did they know this would happen???
• They again blame the subprime market or low income people
• They do not wish to help the homeowners rework terms with a permanent fixed rate
• They only want to do temporary modifications to loans (Hope Now = No Hope!)
• They borrow BILLIONS from the Federal Reserve. (People still do not know about this part)
• They buy up so called weaker banks or business… I thought they lost money or didn’t have any!
• They get great lower rates from our government yet raise rates on lending
• They stop lending all together, even for good credit people and business.
o No cars are sold, merchandise purchased or foreclosures sold
o Now business can’t even complete projects or continue to fund manufacturing. We all knows what that leads too!
• Banks have money (liquidity) but refuse to lend. They did not need more!... Thanks Paulson…
• They are getting paid on both ends, only AIG is getting caught in the cookie jar for now… there will be more.
• What reason would they need to lend when the people/government are depositing large sums of money right into their accounts;. No incentive!

People/Investors:
• They purchased more home than they can afford
o Remember most do not fully understand lending and was steered into higher priced homes due to brokers saying you can afford this.
o People & investors directed brokers and lied on applications to purchase more than one home or larger home on hopes of flipping for BIG profits
• Investors walking away from their homes (aka investments)
o True homeowners do not walk way, until it’s tool late in the process
o As the investment has lost money (aka vacant homes)
o Same investors are now buying the REO’s & short sales
• Now homeowners (good credit) are walking away due to reduced value.
o They can buy a home (same or better) for a much lower price and save money in the end (lower mortgage payment).
o They then turn around and let their home fall into foreclosure.

Government:
• They started a ton of bailouts !!!!!!
• Every analyst and business person said in plain and simple terms “FIX HOUSING”
o Since that wasn’t addressed in the beginning now it is “UNEMPLOYMENT”
o Should we wait for something else!....
• Government directs its efforts in every other direction but housing (I guess government means: go around problem)
• They provide low rates, great terms, free money and open policy to banks/lenders
• Spend Trillions of dollars avoiding the issue and allowing banks to recover loss money
• Market is bad due to government getting involved in private business
• Investors have pulled out of market because of government… the selling
o Making people loss TRILLIONS in retirement funds and this includes state money that invested in these “Too Big” to fail companies.
• Government has to bailout out everyone now with our money and borrowed funds,
o no turning back now… because the lawyers are waiting to file suit if they do!
• Government never helped ”The People” that is the main reason why they are out of office…CHANGE!

I believe you should look into these issues and more. As the simplest answer is right in front of everyone (Paulson open your ears) and they do not see it,
The banks/lenders are the center of this whole thing! yet we give them money to pay VP’s and bonus’s or fatten their balance sheets. Send me some money and I will not lay anyone off or take a bonus. Not like them who have put many of their own people on the job fair line.

Are we not seeing what really started this and what is continuing to this issue…..BANKS/LENDERS.

I’m now seeing my customers who purchase from me can’t any longer due to banks lowing or removing their terms. If this continues then I will need to lay people off. This is just one bad circle! I’m also getting renters who are now unemployed and can no longer pay rent. I also have homeowners turn renters who are losing (possible) their job as well. All of this will put tons of people on unemployment (State/Government) payment plans (aka checks)… are you seeing a pattern here!.... HELLO!
As for me I’m seeing friends and family close doors, move, lay off people and cut back. Just to keep food on the table and a roof over their head.
If you’re not lending you’re not making money. That is what makes the world go round. It isn’t the loan products that did it. They work fine as long as there are checks and balances involved. It is simple common sense: if you make 20k a year you can’t buy a 250k home, much less one for even more. Just because values are increasing. COMMON SENSE You couldn’t even get a car loan for a 30k car on that salary, so why a home (out of your salary range).
Keep it simple: help the housing and employment and you will correct the nation.
I hope I have put forward some valid points for you… again, this is what I am seeing on the east coast and hearing from friends around our nation.

Help the people, that is the only why to get out of this. we are continuing to fuel the same industry that created this. not because of reason but because of friendship or maybe they don’t know what to really do. They first have to understand that this wasn’t the loan programs but simple greed and regulation. Looking the other way when the loan officer or underwriter slipped and passed along then stamped approved on the loan app.
As for someone to run it. they will need a board understanding and no ties to any of the financial companies; avoiding choosing one company over the other.
Or simply thing of this as a business decision like a Microsoft or Warren B. like any business person would do to save or grow the company out of a financial issue.

Hi Suzie,

Your last 2 blogs look like Stereopsis. Do I need special glasses for this? Polaroid?

Thanks Suzie

H