With much mud slinging about the causes of the downturn in the economy, it has been convenient to blame the sub-prime mortgage industry as the Grinch who stole Christmas.     This is, exactly  what that policy is, convenient-   All too convenient of an excuse for the greedy consumer who wanted more than they could afford-  The industry responded to the consumer demand.  This is the way free enterprise and capitalism works.

Blaming the sub prime industry for the foreclosures is like blaming McDonald’s for being fat.  People what fatty fires, McDonald’s serves them.  The consumers wanted bigger homes, the industry provided them.  And after getting a home that is nearly twice what the average sized home was 20 years ago, the greedy consumers wanted more…. Things, toys, cars, boats, RV. OHV’s.  The consumer demanded a lifestyle that was beyond their means and found a way to finance this lifestyle: With the equity in their home.  The consumers took out second deeds of trust to pay for this lifestyle, affording them the extras, without concern of how they were going to pay it back.  And to blame the mortgage industry for duping the consumer- give me a bleeping brake.  Everyone who signed an adjustable loan, signed a one page rider that spelled out in very large print “This is an adjustable Loan”  your payments will adjust, and they were required to sign this one page rider. 

So the sooner the  politician quit coddling those few consumers with strokes of pity and displacing the blame, the sooner this debacle will be over as the market does what the market does best.  Take care of itself by responding to the consumer.

W Daniel Tate

Victorville

964-4976