Fox News fall in Line on Foreclosure Gate

October 24, 2010
After watching interview from the Huckabee show on Fox news.  They had a guest on that was spinning the foreclosure gate as all fault of homeowners and nothing to do with the banking system.  I responded in an email. 


 I think it is time for someone to state the truth about the mortgage mess in the mainstream media. The guest you had on tonight was still trying to blame homeowners for this mess. He is wrong and way off base. The entire meltdown is because of the pooling of mortgages and selling them as securities and insuring the loans 3 and 4 times over against default with the credit default swaps when if a note failed 4 or 5 companies would need to get paid.

Foreclosures are a normal part of the process. People will always have issues that come up but typically they could sell their home and walk away breaking even or being in the whole a small amount if they lose there job etc.

The beginning of this mess was labeled sub prime so everyone would fall for it and let the banks get deeper in the whole until they could get a handout by holding a gun the head of congress. If the banks would have no securitized all the mortgages they would have been able to deal with the foreclosures as they arose but they knew they had collected insurance and if the tranches started going bad they would have to pay out far more than they had in their coffers. They were al insolvent and should have been bankrupt. They avoided the issues until they could milk the system more by putting up the smokescreen of sub prime when they were trying to cover up their fault in creating a situation that would only work if all the parts worked perfectly. IE no defaults. They knew it wouldn't work but they were paid already and did not care what happened to the country. That is why the market dried up because people knew the banks and the rating agencies lied and they were no longer going to buy mortgages as securitize because the cat was out of the bag. The banks created a system guaranteed to fail but they were able to collect their fees and let everything else be paid by the taxpayer. It is ridiculous that people are still trying to blame a small amount of foreclosures 3 years ago as the cause of the meltdown. It is absurd and I wish you would get a handle on it and put the truth out there......The system of MBS and CDS was created by Wall Street and the bankers. It brought the country to its knees.
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How is the homeowner’s fault???? Those who has been in their house throughout the recession trying to survive, trying to make payments only to have the banks again break the law, and falsify documents. ON top of that if the banks would have been let to fail, the mortgages would have been sold for pennies on the dollar those new owners would be negotiating work out to keep people in their homes. The banks now have purchased thousands of mortgages for pennies on the dollar, with government help mind you, and they are trying to collect full price again by expecting people to pay for a mortgage that is worth twice as much as the property value. Why are the homeowners the only ones that are being held accountable? The banks gave the loans and accepted the appraisals. Why are they not being held accountable too???? They got bailed out and screwed the tax payer and now they are breaking the law and not one talking head on fox news is speaking up and defending the little guy. The banks have fleeced America and the government and the media has let them get away with it. The guest you had on tonight was full of it. He said that we needed to get to a bottom.....yeh are we needing a bottom so badly that it is ok for the banks to break the rule of law? Then talking out of the other side of their mouth expecting to hold homeowners accountable for their underwater mortgage. Come on Mike I thought you were smarter than to have someone come on your show that was so uninformed. You are giving forum to more media hype and untruths.

The reason more people have walked from homes is first because of jobs and 2nd because the banks killed the market with MBS. The market crashed and people realized they were not going to get any help from the government like the banks did so they made a business decision to walk.
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This is in no way the fault of a small percentage of sub prime foreclosures. I heard another anchor echoing some other dither that sounded the same earlier today.

I have been a big fox news fan but now I can see many of the people there are as myopic as people on MSNBC, just with a different agenda and perspective.

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