The lesson that you can't loan money to people who cannot repay it was revisited today on Wall Street. The world financial markets took huge losses for the day, continuing a month-long downward slide, resulting from the mistaken idea that people who can't afford to buy a house, can.
Mr. Royal Hammerstein, a trader speaking from the trading floor said, "Geezaloo, you would have thought that someone would have checked some credit apps, but apparently they didn't. This collapse in the credit markets will screw me come bonus time." Well said.
Marshall Stummond, a senior vice-president at the mega mortgage company, Eager Financial, denied that part of the problem can be traced to a simple office supply snafu. According to Eager Financial insiders, who spoke off the record, there was a shortage of red ink for the giant "Rejected" stamps in 400 Eager offices in 46 states. The underwriters were using the "Approved" stamp until the back-order for the red ink was over.
A Senior Underwriter at Eager Corporate in Chicago said, "Our policy manual is very specific. We have 72 hours to provide an answer to our clients regarding their loan application. Without that red ink we had to approve the loans. It is our policy, page 39, section 3. Look it up."
Delores Platt, Office Manager, in the Des Moines, Iowa office told reporters that she had several fifty-five gallon drums of red ink in the storeroom and would have made some available if she had realized there was a shortage.
"If the US economy collapses because I stocked up on the red ink, I'll feel like a damned fool," she added.
Eldon Birdwell, a lobbyist for the Mortgage Fraternal Society, a mortgage industry trade group, vigorously defended the professionalism of his membership.
"Look, we made what we thought, what we had sound reason to believe, were good loans. The fine professionals of the Mortgage Fraternal Society, asked every borrower if they intended to pay the money back. If they said no, we didn't make the loan. Almost everyone said yes. We can't be held responsible for liars, we are mortgage professionals, not mind readers."
The situation was best summed up by Oliver Klozoff, foreclosure expert.
"We could be stripped buck naked by this situation."
In the meantime we wait.
In other news I played golf with the usual suspects today. I played fantastically on the first five holes, playing even par through five. After that I reverted to form. What can you do?
Lastly, I laid down the law for Cletus Sneed. I told him that he and his children were welcome at family functions, but beyond that he was not to call or visit us, period. Let's hope it takes.
Son Sneed thinks that his symptoms yesterday are consistent with meth use. Let's hope not. Cletus had this brilliant idea that he could come and stay with us, rather than going back to his flop house. He was indignant when I said no. According to him, his current living arrangement will kill him and I don't care. He has refused my attempts to get him into a program, so it is his decision.
Things in this blog represented to be fact, may or may not actually be true. The writer is frequently wrong, sometimes just full of it, but always judgmental and cranky
Tag: Daily Life
Personal Finance
Humor
5 comments:
What did Foreclosure Expert Oliver Klozoff say?
We should listen to a man of Mr. Klozoff's reputation.
Whoa, dude. Anonymous comments allowed ! wooo hooo... take heed, mr lint collector.
Now... where did I put my funny comment? Oh, yeah. I don't have one.
Carry on.
Good Lord, Merle. A little too much excitement there at Casa Sneed.
I'm not sure about the meth use. But maybe Cletus should have applied for a mortgage while the getting was good?
Oh, I was wondering why Cletus needed to go to the hospital. I thought I had missed the story or something. So it was related to meth use possibly? I should have read these stories in order. Didn't you tell him one day the rule about not coming over unless it was a family gathering, and then shortly thereafter he showed up with the whole family? Why doesn't he get it?
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