Seventy three year old Joan Olsen, as you can read in this article, admits she signed a stack of papers she didn't understand. Her payments were $788 a month and are now $847 a month. However, the payment could balloon to over $2,000 a month. Who's fault? She admits it hers (bravo to her), but the broker filled in her income as higher on the application. The district attorney should simply go after the broker, and Joan needs to find a new place to live.
Unfortunately, the government has, and will continue to, dream up bailout plans for people like Ms. Olsen. Why should you and I be forced to pay for someone else's mistakes? And it's not just Ms. Olsen, it's millions more.
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Agree, would like to see a lot of them folks (banks) in jail.
See excerpt from
http://news.bbc.co.uk/2/hi/business/7164898.stm
To make their risky loans appear attractive to buyers, banks used complex financial engineering to repackage them so they looked super-safe and paid returns well above what equivalent super-safe investments offered.
Even Wall Street veterans were surprised by the debt instruments
Even savvy Wall Street veteran and billionaire Wilbur Ross could not figure out what was happening.
"What they were fundamentally doing was taking a $100 pile of low quality securities and creating something they could sell to investors for $103," he says.
"So there was an alchemy - making more price than there was value."
Banks even found ways to get loans off their balance sheets without selling them at all.
They devised bizarre new financial entities - called Special Investment Vehicles or SIVs - in which loans could be held technically and legally off balance sheet, out of sight, and beyond the scope of regulators' rules.
So, once again, SIVs made room on balance sheets for banks to go on lending.
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