Real Estate is a long-term acquisition or at least it has been for many years. It is only in these last few years that the values of property went up at an astounding rate. This allowed individuals to buy a home and hold it for a year and sell it for a 10% gain or more. Couple this with some home improvements and you could see values skyrocket with decreasing rates to hold the payment increases to an affordability level that the market could bear.

The baby boomers were out in force again. They drove up the dot.com industry, and then it was tech stocks, next was real estate. There is so much power and money at the discretion of this affluent group that it creates a frenzy (look at Gold and Oil more recently) that spirals into a greed mentality that is only diminished when there is a new exploit to turn too. Look at our environment and the never ending plundering our natural resources.

We live in a capitalistic economy that is fed by consumerism and as such would cease to exist if we all became satisfied. Thus the concept of more, better, different. Apply this to the mortgage industry and you have what we got or really anything else you couold think of.

Tie this in with traditional banks (lenders) that lent out money on a margin over what they bring in on an average savings rate (Cost of Funds Index) and with extreme demand and they simply lend out all they had. Did you see signs on their front doors saying out of money come back later. Did they send letters asking you to deposit more money into their bank? No they simply went to Wall Street and sold the mortgages retaining a small % for servicing the loans for the investors. Then presto they had money to lend again. They then made origination points to cover costs and additional profits and when it was all lent out back they went again.

Eventually the market slowed down. So the banks lowered their lending criteria. They cut the credit scores, lowered the income standards or cut them altogether and raised the loan to value eventually up to 100%. This helped maintain the volume and profits. After they were no longer the lender, they became an originator with Wall Street assuming the risk. But what the heck with values increasing, that mitigates the risk, and everyone is going to make a buck in the end anyway.

So who is to blame? The government for lowering the rate to mitigate a slowdown in the economy, the boomers for taking advantage of an opportunity to make a quick buck, the banks for providing a service for a profit or Wall Street for providing alternative investments in mortgage backed securities?

Maybe its time we all take responsibility for being in a capitalistic society that allows us as individuals to make choices that can benefit us in the long run. We have the greatest opportunity in the world to make money in a free economy. Do we allow the government to take this freedom away with more regulation? There is no quick buck to be made; it is done with hard work and persistence over the long run. There is enough for everyone to win, do we have to let greed run us or can we be our brothers’ keepers? I'm not just talking the financial Crisis here either.

I for one will not be a victim of circumstances nor will I buy into the media hype and sensationalism of whatever the moment brings. I do appreciate that our leaders are attempting to assist "A government of the people for the people" is necessary.

If rates are low enough refinance into a long term fixed rate loan. Take responsibility for yourself. Get informed, educated or find someone whom is honest to help you become more knowledgeable.

I for one am her to help after 28 years in this industry I am not in it for the $$ anymore than I provide a service. This is just my take and I am tired of the victim mentality. Think positively and good things will happen.

Is it not a time for a change!

Kemmer