We learned our lesson, right? We now know better, right? Congress passes laws to keep it from ever happening again, didn’t they?
Well, the answer is no.
No we haven’t learned our lesson nor do we know better, and Congress still has not passed any laws with real teeth to keep the financial manipulation that caused our great economic recession from happening again.
To those of us who watched as American property owners lost billions of dollars in home equity, and as millions of Americans lost their jobs and billions in retirement funds invested in the stock market were wiped out, it is becoming apparent that some things never change.
The scammers, get rich quick gurus and get something for nothing manipulators are back.
Yes, many of the same players who preyed on unsuspecting and ill-prepared homebuyers are at it again, this time promising cheap, cheap interest rates and their expertise at getting a loan, no matter your past credit history.
You’ve seen and heard them, their ads are all over the television and radio, and plastered on utility post all over the city: “We will grant you a new loan with a lower interest rate even if you just got a loan from another mortgage lender in the last six months.”
What they don’t tell you is that many of those very tempting interest rates are on 10-, not 30-year mortgages. They don’t tell you that there are points to payand the interest will probably be higher if you have some dings on your credit report. No, first they get you sold on the dream so you are willing to accept any terms put in front of you.
And let’s not forget about those savvy property flippers who “made millions” in the real estate market and are now so willing to sell you their secrets at expensive classes so you too can learn how to buy a house with “no money down,” and flip it for a “huge profit.”
We are still slowly trying to work our way back from the recession, caused by the unfettered manipulation of our financial markets, so these signs of more of the same are very troubling.
Only a few people – mostly on the lower rungs of the financial institutions — actually went to jail for the part they played in the run up to our financial crisis, Instead, American taxpayers paid through the nose to bailout those very same people who caused the crisis in the first place.
So, hold on to your wallets folks, they’re back and you better beware.