the economy

[Dean May]

>>That risky loans became the de-facto standard of banking here is what got us
to this point.



That only tells half the story. The push for this came from Clinton and was
expanded on steroids by Bush II. They both expanded a 1977 Act to push
mortgage loans for people with bad credit histories. Then in typical
government heavy handed fashion they used the Justice (sic) Department to go
after lending institutions that weren't aggressive enough in giving loans to
people they knew would default. I promise, I'm not making this up: make the
loan or go to jail was the attitude.

Blame corporate greed all you want, it's an easy target. But don't discount
the Feds forcing bad loans. Bush had to get all this money pumped into the
system and he forced lending institutions to do it. So they gave money to
people they knew would default.



Dean



Dean May             cell 812.239.3359



PianoRebuilders.com   812.235.5272



Terre Haute IN  47802









-----Original Message-----
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Andrew Anderson
Sent: Wednesday, October 08, 2008 9:57 PM
To: Pianotech List
Subject: Re: the economy



Explaining how debt, especially mortgage debt and its high ratio

leverage, is the foundation of the banking economy is rather outside

the preferred topics for this list.  I'm not blaming the poorest

members of society for the meltdown.  I am blaming all the "investors"

who thought they could do more with loans that didn't have demanding

terms.  To be frank most (maybe 90% of the $s) are white who got

themselves into trouble with too many houses or too big a house.  That

risky loans became the de-facto standard of banking here is what got

us to this point.  As to politics, the policy was attacked by

democrats first and for good reason.  As with all well-intended

government policy, unintended consequences are what we all usually get

saddled with.



The main point is this, don't let the talking heads discourage you.

Your economy is the >-real-< cash economy.  Any parts of the country

where the economy is heavily debt based will experience more pain but

in general we are the engine upon which that debt based economy feeds

and there isn't anything wrong with us!  We can keep on tuning and

doing all the other side jobs we can rustle up.  We probably won't be

able to finance any of our jobs, but then how many did you ever

finance before?  Our clients are less likely to have difficulty paying

us on average then some of the other markets.  There will be some belt

tightening and the banking economy will get some much-needed sobering

up.



Andrew
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