Letters to the Editor

Washington doesn't get scope of mortgage mess

In early 2009, I started describing what is now happening in the housing market, and I had a letter to the editor in this paper last September that addressed it.

The toxic mortgages that created the first collapse were two-, three- and five-year balloon mortgages. Most who were qualifying had no money to start with, so more than 75 percent opted for the five-year loans hoping to have built enough equity to refinance from the increased value of their home.

Guess what? The five-year garbage that was written in 2006 and 2007 is now coming due and the mortgagees are walking away. This will continue through next year, and the bozos in Washington don't even get why the housing market is crashing again.

Three times the amount of mortgages are going to default this time, and Fannie Mae and Freddie Mac can't even try to hide this mess. No one in the government is talking about the cause being toxic loans that are just now going into default.

We are going into a double-dip recession and Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner are perplexed. I am just a small businessman, and I saw this coming years ago, but the dolts in Washington can't see or hear anything that doesn't come from inside the Beltway. The government is a disaster.

Remember this in 2012, and vote them all out. We have to change the Washington mentality before it is too late, and that means changing the people.

George McMurtry

Lady's Island