OBAMA: ….WILL HE BECOME THE SUB PRIME PRESIDENT?
January 16th, 2009 | by admin |You are at www.garyjamesblogs.com
….if Obama can not jump start the debt machine mighty fast, his positive relationships with our culture will be fraught with problems, and because he is black, he is the Prime target to eventually be referred to as, “The Sub Prime President”…..
Since the election of 2008 the sheer type and intensity of issues that face our world leaders and population has rekindled my interest in searching for the bottom line or perhaps the “big picture” of what’s really going on for the sake of greed.
This time around my research has uncovered the true issue, the ground zero of why the international economy of which America is a big part crashed and burned. Here’s the scoop.
Our current demise actually began in the 1940’s when the bankers got together with a number of real estate people and literally, physically, built a wall that separated the City of Detroit, Michigan into two areas.
One area that was loan worthy to buy or build in (called prime areas) and those that were not loan worthy (called sub prime).
The epitome of what was called “redlining”, this maneuver (which is no longer legal to do) that began in Detroit quickly spread throughout the United States. Whereby, people and property who qualified for prime lending were treated to much better terms than property or people who were in the sub prime category.
Skip ahead….skip ahead…..skip ahead…..some 60 years later the culmination of this type of lending came when the concept was combined with two other concepts.
1) Bundling and selling sub prime mortgages as investments themselves on the open market and chiefly to hedge funds (people with plenty of money). And since it did not take much to rewrite the credit worthiness of the mortgages within the bundles as AAA grade, a great many bundles were sold to foreign investors who accepted the “safeness” of these investments at face value.
2) The variable rate mortgage. ARMs as they are called became the drill that burst the ever expanding “loan/investment bubble”.
With this over all trilogy of financial terror in play is it any wonder that it took only about 6 years to evaporate the whole bloody thing? I have read and listened to a huge pile of crap about mitigating circumstances that helped account for the financial mess we’re in but the above information sums up what really happened.
Meanwhile, Poor Ole President Obama can do nothing about it BECAUSE he is still stuck with an economy that can ONLY grow through debt expansion. In other words, we have to start all over again using the same principles and communication issues that got us into this mess in the first place. Hopefully this time it will be a bit more difficult for the banker’s et al, to engage the greed factor.
I predict that if Obama can not jump start the debt machine mighty fast, his positive relationships with our culture will be fraught with problems, and because he is black, he is the Prime target to eventually be referred to as, “The Sub Prime President”. I hated sharing this with you but that’s the way I genuinely see it. And since I am very rarely ever wrong about such things, I ask, who wants odds?
Stay tuned to this blog. I will eventually share with you what YOU can do in your everyday lives to come out of this financial crap pile “smelling like a rose” as it were.
BTW, in blogs like this I do not list any of my sources because most of them want to remain anonymous.
© Copyright Gary James 2009 all rights reserved.
Tags: communication differences, credit, culture, finances, investment, loan, mortgage, Obama, politics, race, relationships problems, sub prime
