Tag: Mortgage

Mnuchin in Love Nest with “Actress”

 

Treasury Secretary Steven Mnuchin and his new bride, “actress” Louise Linton are the very latest models of a Washington power couple. The two gaga lovers tied the knot in June in a ceremony attended by Washington, Wall Street, and Hollywood elite. You were not invited. Mr. Mnuchin, fresh off his stint foreclosing on old ladies for his company, OneWest bank, was sworn in to his new gig as Treasury Secretary in February in an exclusive Oval Office ceremony attended by only a select few. Ms. Linton was there, because even though she and Steve hadn’t gotten hitched yet, she was still his very significant other.
Steve Mnuchin swearing in
Steve Mnuchin swearing in, with P. and V.P. in attendance, and the fabulous Louise Linton looking on soulfully. Now that’s acting! Wish you could’ve been there – not!

The two lovebirds have been caught up in controversy lately – oh, that liberal media! – which really amounts to nothing to people who know what’s really important, like shopping! First, the Mnuchster had to fend off a plea from his Yale (only the best schools) classmates asking him to consider resigning from his post in the administration due to some unfortunate remarks made by his boss – again, it’s the liberal media stirring up trouble! No way, he replied, I’m in this for the long haul and there’s plenty of draconian fiscal measures I have yet to implement with the boss’s blessing. Besides, all that brouhaha was stirred up by the liberal media mischaracterizing the words which spilled out of El Supremo’s mouth. The words (only the best words) would seem to indicate he is a white supremacist and a neo-Nazi sympathizer, but that’s only if you slant things by listening to the words in the order he said them.

Lionel Barrymore as the greedy, unscrupulous Mr. Potter tempts James Stewart’s George Bailey in the 1946 Frank Capra film It’s a Wonderful Life.

Shortly after that kerfuffle, the newly minted Mrs. Mnuchin, “actress” Louise Linton wrote some things on Instagram that the plebeians expressed indignation about, and Louise had to set them straight. To paraphrase, she told them to eat Little Debbie snack cakes, or whatever horrid stuff you working class dullards stuff in your mouths with your pudgy fingers. Louise and her figure are too fabulous to touch that kind of ick! Anyway, it all started with a plane trip to Fort Knox in Kentucky that Louise and hubby made – coincidentally! – on Monday, the day of the solar eclipse, in a place where the eclipse was near total. Fabulous! but a total coincidence, mind you! So there was a government plane involved, the shopping and eclipse viewing were fantastic! Eat your Little Debbie fudge fingers, or whatever they’re called, and shut up!

The talented and charming Eva Gabor sings the praises of luxury while Eddie Albert sings of integrity and honest toil. It’s not so much that they were giants in those days of the late 1960s, as that we have sunk to the bottom of the barrel since then.

That’s the news from the upper crust, your fabulous betters. You may return to your hog slopping or whatever it is you do, you pathetic prole. And pay up on that mortgage, slacker! Now go away.
― Ed.

 

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The Check Is in the Mail

 

At the end of the Cold War between the Soviet Union and the United States, which can be dated to the fall of the Berlin Wall in November 1989, there was much talk in the West of a “peace dividend” on account of the anticipated reduction in military spending. The dividend never amounted to anything as far as average Americans were concerned, particularly since the Gulf War came along a year later, and then through the 1990s the US involved itself in flash points around the globe in its self-appointed role as world police force. In the new century, the so-called War on Terror has preoccupied this country and dragged it into middle eastern quagmires ever since 2001. That peace dividend looks like it’s never going to show up.

Counting minor skirmishes and interventions, America has been in conflict with enemies foreign and domestic for most of its history. Always in the past after a major conflict, the military would draw down its personnel and weaponry and return to a reduced level that was considered the peacetime military norm, even if small conflicts were bound to flare up. Again after World War II, it appeared the armed forces would follow the pattern and draw down, and indeed they did for several years in the late 1940s. But then the Berlin Airlift happened, heightening tensions with the Soviet Union, and more or less beginning the Cold War. Shortly after that came the Korean War. The country has pretty well been on a war footing ever since, a condition President Eisenhower warned against in his 1961 farewell address when he spoke of the military-industrial complex.

The Ladies' home journal (1948) (14763515784)
From The Ladies’ Home Journal in 1948, an article in the magazine described the trials of a young family making ends meet. Here the father balances the family books while the mother irons clothes. No doubt they juggled income and expenses in the hundreds or thousands of dollars, not billions or trillions.
In a 2012 speech at the Democratic National Convention, President Obama anticipated a peace dividend from reductions in American involvement in Afghanistan and Iraq, a dividend he said he would use to pay down the national debt and put Americans back to work repairing and improving infrastructure at home. Like the Cold War peace dividend, the dividend that was supposed to follow from over a decade of middle eastern wars also proved illusory. For one thing, our enormous military spending, larger than the military budgets of the next eight biggest spenders combined, has been done with borrowed money. Claiming a reduction in military spending would yield a dividend from the balance is like a homeowner taking $20 out of the household budget meant for repayment of various debts and calling it a windfall. Not only will the homeowner have to repay the $20 next month, but he or she will have to come up with an additional $20 to make up for the shortfall.

 

The other thing about this country’s huge military is that some interested parties in the military and in the defense industry like to keep it sky high. That is what Eisenhower was warning us about in 1961. These are people who, while they may not like war exactly – when it comes to actual military service, for instance, a good many of them seem to have other priorities – nonetheless have acquired a taste for the profits and power of the military-industrial complex. They are the friends of Halliburton and Blackwater, and they are in high places. They are the people who will see to it a peace dividend never gets beyond their own sticky fingers into the wallets of the American people who have paid for all their boondoggles.

From Mel Brooks’s 1974 film Blazing Saddles, with Harvey Korman and Robyn Hilton, and Mel Brooks himself as the Governor, this scene could just as well be depicting activities in the modern day Oval Office as in a fictional governor’s office in 1874. Warning: foul language.

There will not be enough money in the federal budget for fixing the nation’s infrastructure, moreover bringing it up to 21st century standards, until the obscene amounts spent on the military-industrial complex are drastically reduced. There will not be enough money for health care, for public education, for Social Security, for fighting climate change by ditching the fossil fuel industry in favor of renewable energy, for doing all the things we want to do to improve our society as a whole, and not merely improve the fortunes of the oligarchy, if we do not come to our senses regarding our budget for interfering around the world and in some unintended ways making it a more dangerous place. Throwing all that borrowed money into the war machine for the past 70 years has bought us a grand house, with a grand mortgage to match, and meanwhile the termites have been busy at the foundations.
― Vita

 

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30 Years and 16 Tons

 

Paying off a mortgage is a wonderful thing, and something that is more remarkable now than it was forty or fifty years ago. Tighter lending standards since the burst of the housing bubble in 2008, and the Great Recession that followed, mean fewer people are qualifying for mortgages now, but the people who currently have mortgages are less likely to ever pay them off because low interest rates mean they will refinance at least once, resetting the clock.

 

Until the 1930s, mortgages were an uncommon way to purchase a house, and mortgages with 15 or 30 year terms were unheard of. House buyers put as much as 50% down, and the mortgage was for three to five years, all of it interest. At the end of the term, a balloon payment for the remaining principal was due, and it’s not surprising there was a high default rate. The federal government changed the mortgage market in the 1930s by stepping in and insuring lenders against the risk of default on certain approved loans, and later by buying those loans to sell as securities in financial markets.

AC Mortgage Burning Party
Mortgage burning party of the Antelope Club of Indianapolis, Indiana, in June 1977; photo by Sheariner.

The modern mortgage market followed from those New Deal policies and the establishment of the Federal Housing Administration (FHA). After World War II, the Veterans Administration (VA) gave another boost to home ownership rates by insuring mortgage loans to veterans with no down payment. The demand for new housing was so great that mass production methods came to house construction and the firm of Levitt & Sons built what would be called Levittown on Long Island, New York, a planned community of over 17,000 houses they built between 1947 and 1951.

 

Subprime Mortgage Offer
The window sign of a mortgage lender in July 2008, offering subprime mortgages; photo by The Truth About.
Housing and mortgage markets stayed healthy through the 1970s, but by the 1980s they turned down when interest rates spiked past 10% nearly to 20%, and wages for middle and working class people started stagnating, as measured against inflation. As home ownership rates slipped, the federal government in the 1980s and 1990s deregulated the financial sector of the economy, loosening restrictions on lending, and especially on the financial instruments related to mortgages. For Wall Street, the doors to the candy store had been flung open.

 

Home ownership rates hit an all time high by 2005, when the bubble was inflated to its biggest extent. That’s not surprising considering all the shady wheeling and dealing going on at the time. What’s also not surprising was what happened next, when the bubble burst – millions of new homeowners defaulting on their mortgages and the housing market tanking; while the Wall Street financiers, and the federal legislators and regulators who were supposed to keep a watchful eye on them, all walked away with hardly a scratch.

Tennessee Ernie Ford sings his number one hit “Sixteen Tons” in this 1955 television appearance.

 

The Wall Street people and their media mouthpieces tried to blame the homeowners for taking on more debt than they could afford. Meanwhile, the taxpayer bailout of Wall Street in 2008 and 2009 did almost nothing to help those homeowners. They weren’t bailed out. No trickle down economics for them. Through all that, the wages of middle and working class people that started stagnating in the 1980s have stayed flat. People who acquired a 30 year mortgage in the 1990s, when the market was turning up, still have to make their payments each month.

From the Monty Python’s Flying Circus television show on the BBC in the late 1960s and early 1970s.

 

Meanwhile, their other costs of living have gone up, such as the student debt for their children who may now be, in the 2010s, graduating from college. That’s assuming they can help their children pay for college; if not, the children will be saddled with such an onerous debt upon graduation they may not feel ready for a mortgage of their own until they are in their 40s. Who can blame current homeowners (in name only, and not in deed), these indentured servants, these wage slaves, for continually turning to their homes as a source of funds by refinancing again and again, to the point they will never have a mortgage burning party? The only economic positives they see are the low interest rates that make refinancing an attractive, and maybe a sole, option for clinging to the American Dream.
― Vita

 

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