The Mortgage Crisis and The First Rule of the Con
Bill Falzett III
October 10, 2008
Have you ever heard of the First Rule of the Con? I can't quite recall where I first learned of the First Rule of the Con, but I know for sure it is a universal truth. The First Rule of the Con is that YOU CANNOT CHEAT AN HONEST MAN! It is fundamental to the success of grifters and con-men the world over. An honest man does not expect to get something for nothing, and therefore he cannot be lured in by that which is too good to be true. A dishonest person on the other hand jumps at the opportunity to get something for nothing, something that he knows is not rightfully his, and he is therefore easy to lure in. He is a good MARK. The con is everywhere, in fact it is highly likely you have an e-mail in your inbox right now with a nice fat lure dangling from it.
Now that we have a handle on the first rule, have you heard the latest narrative from the left about the mortgage crisis? According to them, de-regulation by Greenspan, Bush and the neocons led to mortgage loan merchants taking advantage of the poor and low income. The story goes that all these folks were eligible and credit-worthy for fixed rate loans, but the brokers and loan officers, with the collusion of wicked CEOs deceived them into buying an Adjustable Rate Mortgage. We are to believe that adult Americans with good credit, a job and the dream of home ownership walked into their friendly neighborhood banks, and walked out with a mortgage default time bomb. They were innocents, bamboozled by these slick and greedy con-men. When rates rose, or it came time to refinance, these innocents were unable to find loans and defaulted, which lead to our current mortgage crisis. Are you pickin' up what I'm layin' down?
The tellers of this tale, conveniently ignore the role of the Community Reinvestment Act; They excuse the exploitation and extortion by groups like the Association of Community Organizations for Reform Now; And they deny the corruption of their pet politicians. Furthermore, so compelling and/or useful is this narrative that I even heard our Republican Vice Presidential nominee railing against the deception in the recent debate. Any whisper of personal responsibility is drowned by the din and clamor to blame the powerful and eat the rich. Eat the rich, blame the powerful, and REGULATE, REGULATE, REGULATE.
Folks, this story is nonsense! Any sane and responsible adult who has the wherewithal to get a mortgage loan must be accountable for that to which he signs his name. Otherwise, no contract in any society can ever work. Without reliable contracts, civilized human society ceases to exist. No, these people heard only that they could get lower payments; Everything after that went in one ear and out the other. I don't doubt that there were many crafty loan brokers out there milking this cash cow for every last drop, but they could not have sold a single mortgage without a willing MARK sitting in front of them; A MARK who saw an opportunity to live in a home he could not afford, and pay a price less than he would have otherwise paid with a conventional loan. Now that the bubble has burst, the culpable want to obfuscate the truth with misdirection and politically correct empathy. I sympathize with those who have lost their homes. I sympathize, and perhaps it is not too great a stretch for me to believe the essence of the old adage that "but for the grace of God, there go I". However, no buyer can blame a salesman for selling him that which he has asked for and agreed to.
Have you noticed any other big con on the horizon? It seems like all I am hearing from candidates on both sides of the aisle are promises to deliver goodies of one sort or another from the public Treasury. I also see citizens lining up to ask "What are you going to do for me?" It seems too few recognize that our candidates' are promising things we cannot afford, and they cannot deliver. If they do deliver, it is from more deficit spending, and at the expense of our children and grandchildren.
Be honest, come November are you looking to get something for nothing, or buying into promises that are too good to be true? Will your vote go to the candidate who promises you the most goodies from the public treasury? If so, you are falling for a con, and you deserve what you get. Remember the First Rule of the Con: You cannot cheat an honest man!
Now, while this is all fresh on your mind, go check your e-mail, and under no circumstances reply to that banker from Nigeria who is holding Millions in your name!
Now that we have a handle on the first rule, have you heard the latest narrative from the left about the mortgage crisis? According to them, de-regulation by Greenspan, Bush and the neocons led to mortgage loan merchants taking advantage of the poor and low income. The story goes that all these folks were eligible and credit-worthy for fixed rate loans, but the brokers and loan officers, with the collusion of wicked CEOs deceived them into buying an Adjustable Rate Mortgage. We are to believe that adult Americans with good credit, a job and the dream of home ownership walked into their friendly neighborhood banks, and walked out with a mortgage default time bomb. They were innocents, bamboozled by these slick and greedy con-men. When rates rose, or it came time to refinance, these innocents were unable to find loans and defaulted, which lead to our current mortgage crisis. Are you pickin' up what I'm layin' down?
The tellers of this tale, conveniently ignore the role of the Community Reinvestment Act; They excuse the exploitation and extortion by groups like the Association of Community Organizations for Reform Now; And they deny the corruption of their pet politicians. Furthermore, so compelling and/or useful is this narrative that I even heard our Republican Vice Presidential nominee railing against the deception in the recent debate. Any whisper of personal responsibility is drowned by the din and clamor to blame the powerful and eat the rich. Eat the rich, blame the powerful, and REGULATE, REGULATE, REGULATE.
Folks, this story is nonsense! Any sane and responsible adult who has the wherewithal to get a mortgage loan must be accountable for that to which he signs his name. Otherwise, no contract in any society can ever work. Without reliable contracts, civilized human society ceases to exist. No, these people heard only that they could get lower payments; Everything after that went in one ear and out the other. I don't doubt that there were many crafty loan brokers out there milking this cash cow for every last drop, but they could not have sold a single mortgage without a willing MARK sitting in front of them; A MARK who saw an opportunity to live in a home he could not afford, and pay a price less than he would have otherwise paid with a conventional loan. Now that the bubble has burst, the culpable want to obfuscate the truth with misdirection and politically correct empathy. I sympathize with those who have lost their homes. I sympathize, and perhaps it is not too great a stretch for me to believe the essence of the old adage that "but for the grace of God, there go I". However, no buyer can blame a salesman for selling him that which he has asked for and agreed to.
Have you noticed any other big con on the horizon? It seems like all I am hearing from candidates on both sides of the aisle are promises to deliver goodies of one sort or another from the public Treasury. I also see citizens lining up to ask "What are you going to do for me?" It seems too few recognize that our candidates' are promising things we cannot afford, and they cannot deliver. If they do deliver, it is from more deficit spending, and at the expense of our children and grandchildren.
Be honest, come November are you looking to get something for nothing, or buying into promises that are too good to be true? Will your vote go to the candidate who promises you the most goodies from the public treasury? If so, you are falling for a con, and you deserve what you get. Remember the First Rule of the Con: You cannot cheat an honest man!
Now, while this is all fresh on your mind, go check your e-mail, and under no circumstances reply to that banker from Nigeria who is holding Millions in your name!
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