Greetings to all! Just like Danny announced it, I am going to help him maintain this blog on a daily basis. I am very proud to participate in this endeavors for the sake of economic justice. This is the mother of all battles because first the consumers have to admit that ‘it was too good to be true‘. But people like myself are here to help you improve your knowledge about white collar-crime finance. So, please do not hesitate to drop us a note at indebtwetrust(at)gmail.com if you have any question.
IN BRIEF:

Well now they are confirming what we knew the all way long: there is no quick fix for the mortgage crisis.

WASHINGTON — The Bush administration is working to combat the country’s severe housing crisis but there is no simple solution, Treasury Secretary Henry Paulson said Monday, adding that a correction in the housing market is “inevitable and necessary.” … He said this raised the threat of a market failure and was the reason the administration brokered a deal with the mortgage industry to freeze certain subprime mortgage rates for five years to allow the housing market to recover….

While it is good to ensure that the homeowners can keep their home, the problem you see is that the low rates have caused a loss in equity. People now owe more than they borrowed in the first place. This solution may cost many to opt for a 50 year mortgage. Or more. During the Asian credit crisis in the 90s, Japanese were prompted to embrace the 90 year mortgage solution.

The Housing outlook just took another grim turn today: Countrywide shares tumbled amid signs of a prolonged slump. The Bush administration is fretting about a new wave of defaults.

KB Home reported a mammoth loss for the fourth quarter and said there are no indications that the housing market is stabilizing. The head of Fannie Mae, a government-sponsored mortgage lender, predicted the housing market would weaken through 2009 and said a turnaround wasn’t likely until 2010… more: Tuesday January 8, 2007

Was a time, and until not so long ago, Well Fargo was booming… now the lender is being sued for predatory lending.

The lawsuit alleges Wells Fargo Bank NA engaged in a pattern of predatory lending practices in Baltimore’s poorest neighborhoods, leading to foreclosure rates nearly double the citywide average... Black neighborhoods in Baltimore were disproportionately affected by the subprime mortgage fallout, according to a federal lawsuit filed Tuesday by the city, which is attempting to recoup the costs of maintaining neighborhoods wracked by foreclosures…

2007 will be the year of an avalanche of mega-law suits. This is only a beginning.

Ironically, I am willing to bet with you that we will be hearing from the so-called success of ‘First Houston Mortgage’ later this year again but in a way that is much less flattering fashion. For now the lender cheers a business volume that increased by 42 percent in 2007. Considering the rampant lending abuses one has to wonder as how they did it.