In the Inland Empire, unemployment is one of the highest in the nation standing at approx. 13%. In the city of San Bernardino, scores of houses sit underwater or in the process of foreclosure. Some remain abandoned with squatters and other vagrants sometimes moving in and becoming “residents”.
Personally, I won’t buy a house because Single Family Homes (SFH) do not create wealth, can be abused easily (used as ATMs), and are an antiquated form of property that is a waste of space. I might be in the minority on this one, but living through and seeing the consequences of the housing boom and now the bust has turned me off to SFHs.
In addition, big banks, investors, and governmental entities sit on mortgage loans whose value are inflated, inaccurate, and speculative. Because of the way Mortgage Backed Securities, Derivatives, and other financial products were packaged and sold I have severe doubts as to the true value and ownership of any housing mortgages held by MERS or any of the institutions named above.
As a member of the Financial Services Committee, Rep. Joe Baca pushed through policies were aimed at folks who needed alternative financing methods. However, lack of oversight on his part led to rampant and outright fraud by banks and investors. These predatory lenders and flippers saw the houses and those they sold to as get rich quick schemes to transfer risk.
I point specifically to Rep. Joe Baca on the housing issue because as a senior member of the Financial Services Committee, how could you not know what transactions were taking place under your jurisdiction? Either you have to be incredibly stupid or complicit in the crime itself. I am sure he received reports of fraud in the mortgage industry, but why not raise any alarms or attack the Republicans with the information.
Moreover, he also sit on the Agriculture Committee as well. What does this have to do with housing? This two committees have oversight of the Commodity Futures Trading Commission which regulates Derivatives, or the futures market in short. In 2000, with a Bi-Partisan majority the Commodities Futures Modernization Act was passed which allow these financial products to spawn and grow.
Rep. Joe Baca’s has failed in his duties as a legislator.
To reauthorize and amend the Commodity Exchange Act to promote legal certainty, enhance competition, and reduce systemic risk in markets for futures and over-the-counter derivatives, and for other purposes.-HR 5660, Commodities Futures Modernization Act
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