Design & Analysis Software Blog

Design & Analysis Software

The Design & Analysis Software Blog is the place for conversation and discussion about Computer Aided Design (CAD); Computer Aided Manufacturing (CAM) & prototyping; Computer Aided Engineering (CAE); PLM/PDM/project management. Here, you'll find everything from application ideas, to news and industry trends, to hot topics and cutting edge innovations.

Previous in Blog: What's Your Take on Bill Gates?   Next in Blog: Is the Patent System Broken?
Close
Close
Close
15 comments

A Helping Hand from Taxpayers

Posted August 31, 2008 8:00 AM

This summer, we saw two decidedly different moves to use federal money to back people — and organizations — facing financial troubles. Congress approved mortgage relief for 400,000 struggling homeowners and also gave the U.S. Treasury Department authority to lend money to troubled housing finance giants Fannie Mae and Freddie Mac. And in an unrelated move, Congress passed a measure giving engineering grads up to a $10,000 write-off on student loans. Where do you stand on these two financial relief steps?

The preceding article is a "sneak peek" from Design & Analysis Software, a newsletter from GlobalSpec. To stay up-to-date and informed on industry trends, products, and technologies, subscribe to Design & Analysis Software today.

Reply

Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Comments rated to be Good Answers:

These comments received enough positive ratings to make them "good answers".

Comments rated to be "almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, rate them!
Power-User

Join Date: Jul 2008
Location: Chester, SC, USA
Posts: 308
Good Answers: 19
#1

Re: A Helping Hand from Taxpayers

08/31/2008 11:38 PM

Yep, congress is mighty free and easy spending OUR money, since they are not individually accountable for its use. They can always blame it on "Them"- the other scoundrels in congress. All they have to do is legislate it and the presses print more dollars. Do people realize how big our national debt actually is, how much each man, woman & child owes to pay it off, along with the budget deficit, and the coming wave of legislated entitlements as the population ages? We are in deep doo doo! The only thing that can save us is bring in a gazillion young Mexicans and other immigrants and get them working on the books and paying taxes to cover the entitlement programs like medicare and social security, and repopulate the younger age brackets of the working force.If the US was run like a true business, we'd be bankrupt long ago, and arrested for running a pyramid scheme called social security.

__________________
...That's why we call it "Research"!
Reply Score 1 for Good Answer
3
Guru

Join Date: Feb 2006
Location: Piney Flats, Tennessee
Posts: 1740
Good Answers: 23
#2

Re: A Helping Hand from Taxpayers

09/01/2008 8:03 AM

Well Fannie Mae and Freddie Mac had very low percentage of bad loands until they Government forced them to assume those from other firms.I believe the FRAUD and Collusion charges should be presued against Country Wide and many others.

I saw the Country Wide operation upfront and personal. I tried to use Country Wide to bargin with my bank on interest rates.

The Country Wide property appraiser talked whole lot while she was walking around my house, barns and the fish ponds. She said she had moved up from Florida to Tennessee just to work for Country Wide and some of her friends went to other states. She was renting a house here. Now we have a lot of Private Contractor Realestate Appraiser here no shortage. She talked about all the money they were going to make selling homes here. So this tells me is gets a bonus based on her work.

After the her Appraisial I saw their game. They over value the properties to make ot look like even someone with a low income would have a ton of equity going into a moratage.She over valued my place by nearly $165,000.00. When I took this appraisal to the bank it was all the Office Manager and I could do to not laugh out loud.

I had already fugured out a lot but thew bank mamager filled me in more on their operation. Country Wide would get things scheduled so a lot of loans were approved on one week. They would then package these loans in bundles for Investment Banks usually with a few good loans and people with great incomes on top for examination. The total amount of equity verses the loans gave the people buying these bundles a sense of security against the risk. The RISK FACTOR seemed so low in the bundles that the Investment Banks paid a high price for these bundles than they would for bundles where the Total Proerty Value was lower and the total of loans higher. This translates in to BILLIONS of dollars over a few years. But as we all see those billions were just a subtraction of wealth from the system.

See Collusion is Illeagal andf Property Appraisers are licensed by the States. Problem is there are few if any laws the Property appraiser must follow other than being honest and giving a good estimate on the value. Collusion leading to Fraud when these loans were bundled to take a higher precentage when sold.

Since the lady was so informed that they were going to make a ton of money with these loans I got to thinking and I remembered something important.

Remember the Nixon Tapes when that guy was telling President Nixon about the new plan for HMO'S and how these compnays would be taking 25 % to 35 % of the health care dollars out of the system as profit while cutting back on the amount of health care people actually got?

This home loan scam reminded of that and the Republicans who have been pushing the Banking Industrys position of destroying Fannie Mae and Freddie Mac.

Looks like game set match to me !

According to a lady at Freddie Mac I called to warn of what I knew of Country Wides operation after they were forced to assume the Country Wide loans the FBI is so busy now they are only going after Fraud of $290,000 or more currently. The lady said since the Country Wide Founder was a big Religious Buddy of President Bush she did not expect the FBI to ever go after him. All th FBI has to do is show the properties were over valued, the property appraiser got a bonus, and the extra profits they made with such high appraisials.

I have met several other people here that dealt to some extent with Country Wide and they got the sense they were thiefs too.

__________________
If you never do anything you never have problems.
Reply Good Answer (Score 3)
Guru

Join Date: Oct 2007
Posts: 734
Good Answers: 70
#3
In reply to #2

Re: A Helping Hand from Taxpayers

09/01/2008 4:48 PM

GA! We have a conservative run country, in which the outgoing conservative administration is working to efficiently shovel box-car loads of money into the pockets of their friends and corporate supporters. Under the banner of deregulation, the conservatives have stripped away all of the protections passed into law over decades, by legislatures outraged by some egregious business practice of their time. Now the abuses of the 1890's and 1920's are in fashion again. And then we have people like wcfloyd who honestly believe that the root of our problems is that the is run by socialists.

Reply
Guru
Panama - Member - New Member Hobbies - CNC - New Member Engineering Fields - Marine Engineering - New Member Engineering Fields - Retired Engineers / Mentors - New Member

Join Date: Dec 2006
Location: Panama
Posts: 4274
Good Answers: 213
#4

Re: A Helping Hand from Taxpayers

09/01/2008 5:22 PM

Another interesting attempted bail-out- Hillary asking Obama to help out with her campaign debts. SHE is the one who incurred them, why should the rest of the party be responsible for them? Is this an indication of the new moral mood in the country that no one is really responsible for the debts they incur?

Reply
Power-User

Join Date: Jul 2008
Location: Chester, SC, USA
Posts: 308
Good Answers: 19
#5
In reply to #3

Re: A Helping Hand from Taxpayers

09/01/2008 5:59 PM

I never blamed anything on socialists! I blame it on short-sighted, pandering politicians of both parties who promise more and more (to people, corporations = DONOR$) and do not have the responsibility or accountability to know that there is really no free lunch, and even when they think there is, somebody (taxpayers) is actually paying for it. Each citizen man, woman and child in this country owes over $30K on the national debt. And it grows second by second. They print more dollars to pay it and each one is worth less. Our creditors (China, Saudi Arabia and others who hold US debt) will one day get tired of their investment eroding and divest themselves, to our great financial peril. Could you or the politicians run your personal affairs like they run our country? How long could you last on a borrowing binge?

__________________
...That's why we call it "Research"!
Reply Score 1 for Good Answer
Guru

Join Date: Feb 2008
Location: Milky Way galaxy, Sol solar system, Earth (not Giaha), USA, WA, N.E.
Posts: 692
Good Answers: 13
#6
In reply to #3

Re: A Helping Hand from Taxpayers

09/01/2008 11:01 PM

johnfotl,

I just reread wcfloyd's post and for the life of me I can't figure out why you replied as you did. I guess it just goes to show that we all see the world through our own filter, whether it be political, religious or lack thereof, percieved personal injustices or/and all of the above.

__________________
They that do not learn from history and apply those lessons to the present are bound to repeat its failures.
Reply Off Topic (Score 5)
Guru

Join Date: Feb 2006
Location: Piney Flats, Tennessee
Posts: 1740
Good Answers: 23
#7
In reply to #4

Re: A Helping Hand from Taxpayers

09/02/2008 12:57 AM

They always have in the past but the Hillarys of old did not wait till the convention to release their delegates like she did and the spouce of loser kept their mouth shut too. might be the reason she is not v p

__________________
If you never do anything you never have problems.
Reply
Guru

Join Date: Feb 2006
Location: Piney Flats, Tennessee
Posts: 1740
Good Answers: 23
#8
In reply to #2

Re: A Helping Hand from Taxpayers

09/02/2008 1:06 AM

By the way commiting fraud of the same type 3 times is considered RUNNING A CRIMINAL ORGANIZATION -- THE RICO ACT would apply here too.

__________________
If you never do anything you never have problems.
Reply
Guru

Join Date: Feb 2006
Location: Piney Flats, Tennessee
Posts: 1740
Good Answers: 23
#9

Re: A Helping Hand from Taxpayers

09/02/2008 1:35 AM

Another way to help the citizens is for the state governments to collect, like Alaska does, Royalities on the Natural Resources that are taken from the states. Imagine if $0.05 cents for every ton of Coal taken had been paid to the state which it was taken from.

Alaska is the only state with a surplus anymore.

Our state surplus of $2.3 million went bye bye when so many illegals showed up to pick tomatoes at the new corporate farms with their family needing medical care and schooling.

Would West Virgina Citizens have high property taxes, gas taxes and state income tax that make living there and home ownership hard.

Imagine if Mississippi, Lousiana, Alabama and other poorer states got paid $0.05 for every liter of natural gas or $1.00 per barrel of oil or if Nevada got $10.00 per ounce of gold and $1.00 per ounce of silver.

What is the Indians got $1.00 for every barrel of oi taken off their lands as royalitiys would they be in near total poverty all the time. NO.

See the Natural Resources of the USA belong to all Americans. The Federal Government is susppose to be guarding the Equity of the Natural Resources on Public Lans but Bush will not collect the royalities from any of the mining, oil, coal, gold and silver(mined by Canadaian and Swedish Compnaies in Navada), natural gas and other mineritals.

See WE ARE BEING RAPED at the Present of our Equity in those Natural Resources and by not collecting the Royalities they have effectivel;y transferred ownership of the Natural Resources to Private Companys for $000000.00 dollars ---A HUGE WEALTH TRANSFER that will take a long time in Federal Courts to undo because Bush has appointed so many EXTREME RIGHT WING JUDGES that the American Citizen has little chace of getting justice when going after big corporate interest.

__________________
If you never do anything you never have problems.
Reply
Anonymous Poster
#10

Re: A Helping Hand from Taxpayers

09/02/2008 11:42 AM

I say of the people who have homes being foreclosed on - let them sink or swim.

First off, the percentage of bad loans is quite small and the lending system was working quite well until congress "encouraged", "persuaded" or strong armed lenders to make more loans.

To comply, at a time of historicly low interest rates the lenders began to push adjustable rate mortgages and pushed gimic loans like the 80/20 loans. In doing so, many people got into homes they had NO business being in. So they got to live in a home for a few years they never should have stepped foot in, then remained there for months after the payments stopped. I have no sympathy.

When interest rates are at historic LOWS, where do these "home buyers" think they are going to go from there? And where do they think their house payment is going to go from there?

Add the people flipping homes in a hot realestate market (because of the low interest rates) to those who are buying homes they can't afford. Many of the bad loans are for homes poeple picked up to flip. When the bottom fell out they were stuck with it. The flippers ARE taking a risk and ARE speculating.

I think the bad loans should be refinanced with a fixed rate and let the lenders and home buyers get on with it. If they can't swing it at 30 yrs, take them out to 45 yrs (I cringe at that thought...). If it was not a primary residence but rather a speculative flip - they are on their own.

I don't like bail outs. I hate seeing the mentality day after day of the masses looking to government with their hand stuck out. I think there are so many things the government does (hence spends money) that it has NO business doing. I would like to see LESS "services" from the government. The end was close at hand when citizens discovered they can demand goodies and the end was assured when the politicians discovered how to buy votes with goodies.

Travis

Reply
Guru

Join Date: Feb 2006
Location: Piney Flats, Tennessee
Posts: 1740
Good Answers: 23
#11
In reply to #10

Re: A Helping Hand from Taxpayers

09/02/2008 11:48 AM

maybe you miss the part where many of the loans were made to investors who bought 3 or 4 homes at a time hopeing to roll them over for big profits. At least 65 % of the loans in Florida were made investor owned. In Nevada, California it was about 50/ 50 investor / homeowners.

What is commong fown the pike is about $ 14 trillion in commerical loans that are going bad and estimates are that will take out a many more banks and push them to failure.

__________________
If you never do anything you never have problems.
Reply
Guru
Panama - Member - New Member Hobbies - CNC - New Member Engineering Fields - Marine Engineering - New Member Engineering Fields - Retired Engineers / Mentors - New Member

Join Date: Dec 2006
Location: Panama
Posts: 4274
Good Answers: 213
#12

Re: A Helping Hand from Taxpayers

09/02/2008 11:57 AM

The banks were speculating also, by getting creative in their attempts to "create value" where none existed. Some years ago, a penny stock trader was quite successful for a while, about the time the Savings and Loan system changed its regulatory environment (i.e., making more money available to loan). He was quite a hero in the investment world, until the penny stock bubble popped, and he wound up going to jail, being blamed for the collapse of the Savings and Loan industry...

Reply
Anonymous Poster
#13
In reply to #12

Re: A Helping Hand from Taxpayers

09/03/2008 12:02 PM

Let's not forget the government bail out of the S&L industry in the 80's when Bush Sr. was in office. Seem to remember one of his sons (W's brother) was the head of one of the large banks in Denver, Co. that was bailed out. Nothing like nepotism.

Reply
Guru

Join Date: Oct 2007
Posts: 734
Good Answers: 70
#14
In reply to #5

Re: A Helping Hand from Taxpayers

09/03/2008 1:20 PM

My apologies. You are correct. After looking back over your post it is clear that I misinterpreted your comment. I must have had my head in a secure and undisclosed location. Again, I'm very sorry for my comment.

Reply
Anonymous Poster
#15
In reply to #5

Re: A Helping Hand from Taxpayers

09/09/2008 11:12 AM

I tend to agree regarding the views of this post. Our legislaters in Washington do not have the slightest concept of money and how to value it. With our national debt in the trillions now, one should simply take a look at how much a trillion dollars is in realistic terms. A trillion dollars would allow one to spend one million dollars a day beginning from the time that JESUS was born 2008 years ago until present time 'and then'- they would still have over 700 years to go.... Does this sound to anyone that a trillion dollars is chunk change? The U.S. is in fact already in deep financial "poo poo" and we as taxpayers really need to send a very strong wake up call to Washington. We should give the utmost considerations towards electing qualified people instead of "re-electing" the same old problem makers every four years. NEW Blood with educated concepts is required. People need to know what to do before they will be able to do.

Reply
Reply to Blog Entry 15 comments
Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Comments rated to be Good Answers:

These comments received enough positive ratings to make them "good answers".

Comments rated to be "almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, rate them!
Copy to Clipboard

Users who posted comments:

Anonymous Poster (3); cwarner7_11 (2); dadw5boys (5); johnfotl (2); Shadetree (1); wcfloyd (2)

Previous in Blog: What's Your Take on Bill Gates?   Next in Blog: Is the Patent System Broken?

Advertisement