02/18/09:Mortgage Meltdown

" Might -- six WTKK. The housing bubble. All kinds of people took advantage of Barney franks idiotic fiscal policy. And said I'm gonna buy a home whether I can afford not. Because Barney Frank. Use the power the federal government to urge and encourage or order. People to make sub prime loans no matter how lousy the borrower. A lot of people who couldn't afford homes who should never -- to quite frankly didn't have the character to be homeowners they were bombs. Got problems. Now those bombs. Are paying their. Big shock. What is the right thing that should happen. As someone. Who buys a home they can't afford to. -- and -- gonna walk away from what's the right thing to happen. According to president Obama the right thing to happen is to go to you and me. And everyone else -- either paying our mortgage in a timely manner or worse in my opinion. Are people who are renting. Because they're saving not to be a responsible home where one woman Monday. The right thing to do -- president Obama and congress and Barney Frank is to beat the crap out of you take your money from you and give between fifty. Billion. And 100. Billion. Of your dollars. To people who bought homes they couldn't afford to using information that wasn't true. To get mortgages they wouldn't pay. That's the right thing. To do -- find that just phenomenally. Astonishing. You've got people. Who were trying to do the right thing and take extra jobs. To pay their own bills. And their money is going to be taken from them -- given to people."

" Who didn't. People who speculated he said man I think I can ride this housing bubble all the way to the top and make me some money. Jumping into this loan and to get this -- now two years from now the house is gonna be worth another 2000 dollars I would keep that profit. An -- role of the week. Well now the bubble that now we're going. -- You've got to pay my bills from being. So little they -- bills. Michael printing like."

" and broken giving element into the -- the right now so."

" That is the strategic -- I really think about that."

" If you're in Massachusetts and you're trying to Obey the rules and there's some paperwork error somewhere you can go to jail. But if -- Massachusetts and you evaded the lending rules and lied about your income to get a house you can afford you can get a bailout. I'd go to jail you go to -- Jail out bailout. If you -- bigger roles your future is jail if your face if you break the rules your future is a bailout. Paid for by honest citizens. That is the natural treat that as the."

" On an indefensible position that we are in and a classic story is a story of Melanie Griffith Jones who's on this show. Last year. She was she bought a house about 40000 dollars down in Dorchester. Two triple a reliable. And arm. She had an income of like. 12000 dollars. -- three kids. Never been married. And she got alone for 400000. Dollars. Well for two years. Everything was fine until the rate adjusted ad that said it would in her alone this is -- a -- she got an adjustable rate mortgage. What's one thing we know about adjustable. Rate mortgages. It just. They change a just change at the same. Changes you finally start paying. What you really had to pay on this loan to make it. Makes it's up to two years of of basically the scan and subsidized fate you know mortgage payment."

" As she thought they can of --"

" So the banks as we're going to foreclose. These nit wits with city life for CD whatever go rolling in the streets they march in the streets no justice no please don't just a brief."

" Protesting."

" On behalf of melodies right to live in a house that she doesn't own and not make any payments on -- right to stay there. Sort of she's not pay their bills -- some -- chain themselves to her front porch."

" So the press. That she she doesn't hold a press conference whatever on -- report does of course she's the victim she's the victim of those evil banks who want her time. You know pay your bills."

" And she says is not my fault. I was tricked into those adjustable rate mortgage I didn't understand how an adjustable rate mortgage would work to confuse being."

" You don't Melanie Griffith Jones did for a living. She was a realtor."

" She was a real dirt and she claims she didn't understand her real estate loan."

" Like A-Rod saying."

" You mean I'm not supposed to take these drugs -- I didn't understand -- done. Doesn't ever I don't understand all this -- it is so confusing what can you take McCain you today -- They were tic -- try to Nolan."

" It's so now held. President Obama says that it is your job. As a homeowner who pays your bills or as a -- who saving one day be homeowner it's your job to bail out. Melanie in other people like her. One -- to 100. Billion dollars here's my question the US 6178221969. Pound and time for a -- of -- what should happen to people. Who took out adjustable rate loans. Who had he rates adjust. And then don't pay the mortgage is what should happen to them should they get bailed out should they get money from from their neighbors to pay their bills. All -- Should debate XP punished for daring to make them alone in the first place. Does have the money confiscated from the banks. It's by the ways the generals were or and I. -- was a crazy idea and it's kind of radical. Those of you are on medication may launch in the radio down this crazy idea. You don't pay your bill. You don't keep that knows. No pay bill. No keep owns about that crazy kooky zany ideas 6178221969. And Michael Graham."

" Thanks again -- built right why can't they do the same thing in neighborhoods like this."

" email me. Michael -- it 969 the DK K dot com."

" question according to Maura Reynolds in the LA times is. How should the losses. On these homeowners who are bailing out of their loans how should these losses. The shared. Among quote borrowers lenders and -- government close quote how much of the bailout money. That we're gonna give to people who took out our adjustable loans and then didn't pay them how much of buildings to come to the government the you know. This is is present Obama gonna pay at. Instead getting it against took a check in what is the RMV going to take some might. He money and did not know none of it's gonna come from the government it's all gonna come from the attacks skiers. This is our money so my question is how much of your money. Do you think president Obama should give to people who aren't paying their mortgages. So they can stay in homes. That they couldn't afford to buy in the first place. So they can disdain homes. That. -- did using loans. They never would have qualified for that hadn't been for the idiocy of the Freddie Mac Fannie Mae by all sub prime loan policy how much of that should you. Be on the hook for -- I promise you everybody at the LA times. Borrowers may pay part of the price Barack Obama but what brought Obama supports forcing the banks. To eat part of alone. Rock Obama wants a judge be able to say I know you -- the great powerful Tom 400000 dollars but I've decided to fifty works for Michael Graham -- supper so much. He should only -- you now 200000. The judge could just make 2000 dollars of someone's money disappear."

" Well Michael it's for the children is for the boys -- make sure you don't love Obama."

" you want to kill lending your kill the economy tell people who lend money but the government might decide they're not getting half that back so that. And you'll be able to another loan a -- So the bar the borrowers may get -- to lenders make its stock. The borrowers make you stop they should they borrow the money. But the government won't pay a penny you will pay every -- 6178221969. Around 969 for a Verizon Wireless customers Mary's on 969 the morning Mary how are --"

" Good morning Michael I'm well I'm a lot to get formula -- they're really only -- on this story oh mortgage problem. Huge piece that it is -- a lot of people. Took home equity loan when that -- when -- as. Well as a thinking that they're money. -- Well. And took another. Get -- and and pot -- stop it. There. -- mortgage to pay it. Green closure and say well my Latin EB at QB. Education. -- And it. Barbara California and all the time in the day and then record pop. There they aren't able to go to them -- and all who read out but. -- PP IBM. Not our people and you. --"

" What were they didn't feel when they -- they didn't steal our money they took -- this money ability to steal our money Mary is if our politicians like president Obama and Governor Patrick and congressman frank all of whom support this give them. Our money. And that's that when you're absent right -- that is a brilliant observation we're not bailing people out of their homes we're bailing them out of the plasma TVs in the trips to Cancun and you know BMW you're absolutely right. People took houses. That were worth. And 300000 dollars in during the bubble they jumped to 500000 dollars in these folks borrowed every damn penny they could against that 2000 dollars every penny. They say I'd better put some aside for a rainy day or I'd better be careful even say I would take the money and roll back into my home. You know for example I. -- to have a sub prime -- I had an adjustable rate mortgage in the sub prime loan. And one -- things I had to do is I had to put a roof on my house and it just cute as in we needed that went on to protect the -- so. Part of that you know equity stuff they did early on had a little bit of equities I took that money but right back in house on. Thanks to my takes my roof innovative in in my roof. The other people took that equity money and they rolled it into stuff. And now they've got the stuff they don't want to pay the bill they want you to pay the bill. Should -- is president Obama right 100 billion dollars of our money. Let's go to Kevin Kevin Euro 96 -- thanks for the call Kevin."

" Eight I'd like I agree 100%. With the bailout. The only thing that I actually you disagree if you want it characterization. On all these sub prime subprime borrowers and bomb. I truly believe that some some. Some of these people are this money could -- trying to take advantage of the American dream. Saying look for shot in owning a whole building up some equity and building in cash and home. I took issue ought to -- My problem can be an okay you took a shot you've failed now expect the rest of us the taxpayers. Can now -- That's ludicrous that at -- Those folks who were renters who took a shot at home. That shot deal should now go back to becoming renters and sell those properties or lose the property through foreclosure process of folks who can truly afford to buy those on the back at this point."

" I I'm glad you added that piece about bombs let me tell you what I am thinking when I used the word. I'm thinking specifically of the people who want the bailout. 'cause we're not hearing from people who have your attitude cabin -- well I tried an annual is a risk and I you know and it's only the bubble that lasted two more years of global -- they're not the ones demanding a bail out. It's the other folks or demand the bailout that's why I characterize him as."

" It. I think that the airport."

" And I know I think here's a fair point that's why want to make sure we're on the same page excellent addition to the conversation 61782219269. Tracy is on 969 good morning Tracy."

" Hi I notary and I've been doing it at thirteen years now."

" What what are the notary is role in this what do you see as a notary."

" Now -- to the people's houses will work out to the attorneys shop at and conduct a cloud bank he'll -- the clothing paper work. And I get to see you know what you're getting lower interest rates that are like. Bad I ain't into that of course talking with the people expect her. But a lot of that people close -- Tour over the past several years and that you know we get something like afraid they. Could've -- a victory blow. They -- gambling on getting the adjustable rate cut the lower great. And you know when he did that in several cases. I would say is sounds -- gambling. And gambling. They could've gotten that victory and everything else. But they figured they would --"

" have them -- my question being Tracey how much of your money do you think should go to those mortgage gamblers to pay them for taking that team. Zero -- good I don't know a notary noting noting he's a very specific -- all details of the specific amount would be approximately zero. Okay I'm would you -- or I would rounded off at oh. I'm I'm I'm right tricky thanks for the call 6178221969. -- 96 on -- Verizon Wireless customers we just dumped 800 billion dollars. Under the Obama economic rescue plan in the stock market fell 250. Points. When Barack Obama took office -- season Barack Obama won the election November 5. Of 2009 the stock market was at nine 700. Yesterday at midmorning it was at 7700. To thousand points 2000. Pieces of a measure in the measurement of the wealth of American ball in present Obama now. What's -- take. A hundred billion dollars from those of you who lost money your 41 -- Those of -- senior retirement savings you know slip away in value. You want to take another hundred. Billion with a B dollars and give it to people who bought homes they couldn't afford or took out mortgages on as as as of last colleges said mortgages and -- He wants you to make it up about it you prepared to take part of that 401K that's down by 70%. And knock it down by 80%. To bail out your neighbor who got alone they couldn't afford are you prepared to do that if you order Obama supporter and you can explain why this makes sense. I'd love to talk to you in my program. --"

" I'm right. Today oh lead in the end it right."

" can't think gorgeous the street Dorchester. -- and the right. Today. It houses -- not painful. -- that we're not taking the same time. We demand the rights group smart people who -- this effort. He's the chief executive neighborhood assistance corporation America he says quote."

" What did so so angry is that homeowners blame themselves. Listen to this key. They can't see past their sense of responsibility."

" Shame that more people can't see past. Their own sense of responsibility. Terrible all we can get that little irresponsible I think everything would be great idol."

" And this is completely off the subject to a degree Bruce march is the subject. One of the -- to -- the book I'm working on right now. London a book on the new bail out culture. And this quote is one of the building blocks that block can sustain any made there's this story of a woman who committed suicide down South Shore. In it was on the day that it mortgage payment would foreclosure was supposed to happen and the ball single Democrat in the stores saying mortgage crisis kills woman. Well the Boston Herald does something that they don't do the globe Democrat much anymore called reporting. The family had filed for bankruptcy three times. In the previous two years it wasn't this hot you know the Stanley they had an altogether -- the crisis strikes and in the moment Xiamen. They you know that she -- missiles and -- they had ongoing. Financial problems for year to you -- they had."

" Saw that got the deal on their house. Taken the deal that run into the 45000 dollars in debts up on it after getting the deal."

" Michael you're just being mean spirited or other people. I don't understand it appeared in old edged up just happens to people are victims Michael really. Were and -- the Patricia harper of lake city Georgia the victims they had a beautiful."

" Four bedroom home. -- Clayton county Georgia. It was put up on the auction block over the summer four bedrooms three car garage decorative walked walls. In their house is foreclosed on Michael that happens sometimes human mistakes are really its its interesting about bruise -- Milton temperature -- They got their house for free on extreme make over home edition."

" They got a free house. Plus enough cash to pay the taxes on the house for 25 years."

" And they still got foreclosed on. They're still eligible for the Obama bailout why because they borrowed 450000. Dollars against a bright. Red. So here's -- sampled. If you give."

" A bum."

" A free house. He's still -- He's a bum with a free house it's a what does he do he runs up the money doesn't pay his -- the sport and people want the real."

" Melinda and that's our feelings of personal responsibility. You evil Michael grammys six point 7822 in 969 lingo is on 969 good morning Linda you're on the air."

" Hi I wanted to say it ain't that political stimulants that Obama really kind of -- at society speakers. And it and I mean is. For example and we have our credit that part over 800 TH on. We have how we have I'm more arrogant -- but we never want to paint that we currently we have no debt so we were okay with a larger and larger markets. We -- the stimulant them on the continent like hey. Stop us from giving you payment now getting our interest rates much lower. -- the people's front stopping it before I need that range where their mortgages more than 30% of their income. Well it's going to stop them from skipping it -- listening getting --"

" A smart thing to do if the Obama plan -- goes through is for responsible. Careful borrowers to stop making the payments. I'll make your payments until the bank look at it. -- Obama says I'm entitled to a lower mortgage rate I'm entitled to owed you less money until you take a cram down in not my debt from you know 500000 to 3000 until you're not my two straight down from you know 6% to 4% I -- a -- That is the incentive by you have been incentivized to do the island."

" Actually that that the idea or --"

" Or any -- the only thing -- between that is your character. If we had 306 and million -- living in America we wouldn't have this problem but the fact is you know. Right now there are people going me. I'm a bad idea."

" Should I pay the bills which is soccer should be jump. Why did you work so hard Michael -- to have a real driver's license that real core insurance look at the criminal immigrants they got nothin' they will all."

" Why should you work so hard paying market sub prime loan Michael Graham and renegotiating it."

" Just let it fall apart don't your builds upon let's keep the money. And then let Barack Obama give you someone else's money if forced the bank cut to a deal why the."

" Only thing between you and -- is that between America. In the disaster that president Obama is creating is -- character -- the only."

" Thanks for downloading and listening to Michael brown. Come back Coughlin Boston's talking evolution might -- 69 WTKK. He is on line and on demand."