This is why I have a personal blog…

Warning: this content is older than 365 days. It may be out of date and no longer relevant.

… because even though this post is loan-related, it definitely doesn’t belong on the company’s web site.

Senator Charles Schumer, you’re an idiot. Specifically, you’re an idiot for proposing legislation that will provide a bailout for homeowners facing foreclosure, according to the Washington Post.

“We will be proposing significant amounts of dollars,” Schumer told reporters after being asked if a large federal bailout may be needed.

More from your colleagues:

“We’ve heard one heartbreaking story after another of borrowers with limited incomes being sold mortgages they could not afford,” Sen. Sherrod Brown, D-Ohio, said at a briefing on Capitol Hill.

Full stop. Reality would like to have a word with you, then possibly bitchslap you. Unless a mortgage broker forged a signature on a loan document, the borrower signed for the mortgage. If they didn’t sign for it, then that’s fraud and they’re not liable for a penny of the debt. If they did sign it, but didn’t understand what they were signing, that’s not fraud, that’s stupidity.

Lesson the first: never sign something you don’t understand. Ever.

Sen. Christopher Dodd, D-Conn, said he would call for a summit on Capitol Hill soon “to try to work out a process for providing relief to homeowners.”

Senator Dodd, you’re added to the list of idiots.

Why? Because when you execute a bailout on bad debts, guess who gets the money? Not the homeowner. Not the poor grandmother and the other sob stories you’re trotting out. The banks get the money. You’re essentially proposing to funnel a billion or so dollars straight to the loan portfolios of Citibank, Wells Fargo, Chase Manhattan, and other lenders, and I’m sure they’re very happy with your idea. In fact, I’d be willing to wager that they’ll repay the favor with some campaign funds.

Wait, let’s go check.

CHARLES E. SCHUMER (D-NY)
Top Industries

The top industries supporting Charles E. Schumer are:
1 	Securities & Investment 	2,507,200
2 	Lawyers/Law Firms2,009,721
3 	Real Estate 	1,529,498
4 	Commercial Banks549,249
5 	Misc Finance 	$534,248

And for some names…

CHARLES E. SCHUMER (D-NY)
Top Contributors

1 	JP Morgan Chase & Co 	129,800
2 	Merrill Lynch127,000
3 	Bear Stearns 	126,400
4 	Citigroup Inc111,550
5 	Morgan Stanley 	$109,500

I call bullshit on you and your bailout of your financiers. This is payola, plain and simple, disguised as an appeal to a middle class who won’t see a dollar of your proposed aid to them – but they’ll pay it out in higher taxes. What about you, Senator Dodd?

CHRISTOPHER J. DODD (D-CT)
Top Industries

The top industries supporting Christopher J. Dodd are:
1 	Securities & Investment 	1,552,013
2 	Lawyers/Law Firms749,472
3 	Insurance 	697,458
4 	Real Estate504,941
5 	Commercial Banks 	$403,700

Again, I call bullshit, but let’s dig once more…

CHRISTOPHER J. DODD (D-CT)
Top Contributors

1 	Citigroup Inc 	196,550
2 	Bear Stearns186,350
3 	United Technologies 	157,950
4 	American International Group121,378
5 	St Paul Travelers Companies 	$105,800

Nice to see your legislation will fatten the profits of your supporters at the expense of my wallet.

Go take a long walk off a short pier. If you ever wondered why America doesn’t trust you, this is why. Payola sucks, no matter how you slice it. I swear, I’m going to find that C-SPAN video of your speech on the Senate floor and put a big-ass “This appeal for more government misuse of tax dollars is brought you you by these fine banks which would like some free money…”

Disgusting.

Comments

17 responses to “This is why I have a personal blog…”

  1. Jay Moonah Avatar

    Don’t hold back Chris, how do you really feel? 😉

    What I think might really be need here are better requirements for the lenders to disclose the possible outcomes (such as foreclosure) to potential borrowers if they are not able to pay.

    While I agree people need to be responsible and understand what they are signing, it’s not possible to legislate against stupidity (but that would be great, wouldn’t it?) It is possible, on the other hand, to legislate against big lenders obfuscating the terms of their often complex agreements and thus allowing people to think they can afford something they really can’t.

  2. Jay Moonah Avatar

    Don’t hold back Chris, how do you really feel? 😉

    What I think might really be need here are better requirements for the lenders to disclose the possible outcomes (such as foreclosure) to potential borrowers if they are not able to pay.

    While I agree people need to be responsible and understand what they are signing, it’s not possible to legislate against stupidity (but that would be great, wouldn’t it?) It is possible, on the other hand, to legislate against big lenders obfuscating the terms of their often complex agreements and thus allowing people to think they can afford something they really can’t.

  3. Ted Demopoulos Avatar

    The people living on floodplains might disagree . . .
    Now, I’m somewhat responsible. I pay my bills, I take on debt I can service, and I realize that maybe, just maybe, something will happen and I won’t be able to anymore. But I’m an adult, and don’t expect anyone to bail me — or my debtors — out.

  4. Ted Demopoulos Avatar

    The people living on floodplains might disagree . . .
    Now, I’m somewhat responsible. I pay my bills, I take on debt I can service, and I realize that maybe, just maybe, something will happen and I won’t be able to anymore. But I’m an adult, and don’t expect anyone to bail me — or my debtors — out.

  5. Jason White, CSCS Avatar

    Hey hey hey,

    Let’s not get too hasty about legislating against stupidity. The very thought that a government can/would/should take some responsibility for a person’s intelligence level is flawed to the core.

    We are all here, right now. You are here and you are responsible for your self and your intelligence. you can make it better or not.

    Learning is what happens when people make mistakes and people need to make mistakes in order to learn (generally speaking) attempting to prevent this prevents a fundamental part of the process of being human and learning your lessons.

    Like signing on the dotted line…

  6. Jason White, CSCS Avatar

    Hey hey hey,

    Let’s not get too hasty about legislating against stupidity. The very thought that a government can/would/should take some responsibility for a person’s intelligence level is flawed to the core.

    We are all here, right now. You are here and you are responsible for your self and your intelligence. you can make it better or not.

    Learning is what happens when people make mistakes and people need to make mistakes in order to learn (generally speaking) attempting to prevent this prevents a fundamental part of the process of being human and learning your lessons.

    Like signing on the dotted line…

  7. Chris Brogan... Avatar

    I have nothing significant to add, but wanted to say that the way you laid out the information was very informative, and matching that to your emotions and thoughts on the conversation was excellent.

    In other words, great post!

  8. Chris Brogan... Avatar

    I have nothing significant to add, but wanted to say that the way you laid out the information was very informative, and matching that to your emotions and thoughts on the conversation was excellent.

    In other words, great post!

  9. […] Penn has a fantastic take on proposed bailout for homeowners facing foreclosure. Good job […]

  10. Amy Avatar

    I think you are right on.

  11. Amy Avatar

    I think you are right on.

  12. Whitney Avatar

    Part of the problem is that many people don’t really understand money. Oh, they understand they exchange it for things they want, but they don’t understand economics of long term debt- they only understand “I want it now”.

    I worked for a student loan co as a customer service person during college; I have dealt with college students and contractors and the like failing to pay their bills from a legal perspective, including eveictions and foreclosures, and it all comes down to Chris’s basic message- Don’t sign anything you don’t understand, and live up to the obligations you have knowingly taken on. Understand that if you want a new ipod, you have to pay the rent and the mortgage first, and deferred gratification is a good thing.
    But I also think we need to start teaching real world economics and money management skills to kids starting in middle school. Not just “balance your checkbook” stuff, but “This Number of dollars is needed per month to cover your most basic needs. Then you need to save in case you can’t work because you get sick. After all of that is paid for, then you can start talking about ways to manage the gravy.”
    I know too many grownups who get themseleves into debt because they don’t understand how expensive compounded interest is, what they can really afford, or how to say no. Banks will always lend you as much money as you want if you have a decent credit rating- you’d be STUPID to say yes.

  13. Whitney Avatar

    Part of the problem is that many people don’t really understand money. Oh, they understand they exchange it for things they want, but they don’t understand economics of long term debt- they only understand “I want it now”.

    I worked for a student loan co as a customer service person during college; I have dealt with college students and contractors and the like failing to pay their bills from a legal perspective, including eveictions and foreclosures, and it all comes down to Chris’s basic message- Don’t sign anything you don’t understand, and live up to the obligations you have knowingly taken on. Understand that if you want a new ipod, you have to pay the rent and the mortgage first, and deferred gratification is a good thing.
    But I also think we need to start teaching real world economics and money management skills to kids starting in middle school. Not just “balance your checkbook” stuff, but “This Number of dollars is needed per month to cover your most basic needs. Then you need to save in case you can’t work because you get sick. After all of that is paid for, then you can start talking about ways to manage the gravy.”
    I know too many grownups who get themseleves into debt because they don’t understand how expensive compounded interest is, what they can really afford, or how to say no. Banks will always lend you as much money as you want if you have a decent credit rating- you’d be STUPID to say yes.

  14. Donna Papacosta Avatar

    Very well done post, Chris. You did your research!

  15. Donna Papacosta Avatar

    Very well done post, Chris. You did your research!

  16. Heather Avatar
    Heather

    Great Post. Why not take it to the next level? Send a note to these senators stating that you are opposed to a bail out in the subprime market. Attach the campaign contributions and question who they are really trying to bail out. I did…. surpisingly, I still have not received a response.

  17. Heather Avatar
    Heather

    Great Post. Why not take it to the next level? Send a note to these senators stating that you are opposed to a bail out in the subprime market. Attach the campaign contributions and question who they are really trying to bail out. I did…. surpisingly, I still have not received a response.

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