In today’s paper, Thomas Ott of The Plain Dealer writes in his article,
When the dark clouds formed, few of us took notice, or if we did, we never imagined the monster storm that was about to hit.
How could we?
You might have seen a nasty tornado or two. But what do most of us know about catastrophic events akin to category 4 hurricanes? Who among us could foresee tsunami-like forces wiping out thousands of our homes and displacing tens of thousands of our neighbors?
Yet that’s essentially what happened here over the last decade. A series of manmade forces — loose credit, Wall Street greed and outright fraud — collided with our employment woes and chronic poverty to form the economic equivalent of the perfect storm.
We have since learned to call our plight a foreclosure crisis. But comparisons to the aftermath of a hurricane are inescapable.
This article shows the grim reality that’s plaguing far beyond our city walls. I am beyond grateful for our discerning “mortgage guy”, Ryan Wuerthner, who worked with us in utmost integrity and honesty while drafting our first mortgage note in 2005. In a recent email, he wrote:
They call this a “subprime” meltdown, but that is very much dis-ingenious. That German bank that failed (or would of without gov’t intervention) was NOT subprime but rather pay option arms (A & Alt A – good credit loans). The pay option arm was pushed by these big banks and wallstreet by enticing brokers and other loan originators with BIG commissions- I wouldn’t sell it because morally, I didn’t believe it was a good product for 95% of the population- every loan has a place. This loan product is like a neutron bomb. It is going to leave the buildings standing but with no people. Unfortunately this will harm us all by eroding values due to foreclosures and others getting out.
Thank you, Ryan, for your moral discernment and utmost integrity that helped shelter us from said “real estate’s perfect storm”. Thank you.