“Why should homeowners take responsibility for the screw-ups of the financial geniuses on Wall Street and the screw-ups of those who did their closings?” — Neil Garfield

Op-Ed Columnist NY Times

Too Good to Check

Published: November 16, 2010

“A lie can travel halfway around the world while the truth is putting on its shoes.”—TWAIN

… there is an antidote to malicious journalism — and that’s good journalism. — FRIEDMAN


HERE IS THE LIE: (THE LIVING LIES THAT WENT ALL AROUND NOT HALF WAY): The financial crisis is only partially related to the housing meltdown and to unemployment. The fundamentals are too complicated for the average person to understand. It’s more complicated than just doing justice. The homeowners should shoulder most of the blame — they knew they couldn’t make the payments.


  • The financial crisis is ALL about the housing meltdown.

  • If Wall Street had not flooded main street with an overabundance of money and provided ridiculous incentives that would tempt even an honest person to lie, the financial sector would still be back down at 16% of our GDP, capital would have been available for new business, business expansion and people would still have jobs where they could actually pay for things.

  • The excesses of other debt would still have taken its toll, but without the housing crisis Wall Street would not have “made” trillions, the bonuses would not have been there, the ridiculous inflation of “Appraised values” would never have occurred nor would the alleged “drop” in values to what they always were have been a problem. Nothing is more complicated than doing justice — that’s the American way.

  • Homeowners did not create this mess, they did not mess up the obligations, notes, receivables, mortgages and deeds of trust, with artificial entities instead of the real people involved. Homeowners did not do the closing. They just signed what was put in front of them like everyone else does at a real estate closing, assuming that the “bank” (pretender lender unknown to the borrower) would have reviewed every “i” and saw every “t” crossed when in reality the game was rigged, nobody was doing due diligence, nobody was “underwriting” the loans and the lies were spread all over the globe to sell phantom mortgage bonds and synthetic instruments on the backs of homeowners who were deceived to their detriment by the lie that the property was worth more than the loan and that the property would rise still further in value.

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