In March of 2007, I wrote an article on LatinoLA about the coming Armageddon in the housing market. I was right.
I wrote that article using common sense and historical price trends in the California Real Estate Market.
In September of 2007 I wrote an article titled Real Estate Armageddon the Sequel. I said that housing prices would continue to free fall. They did and they will go lower yet.
Now you would have to believe that our Governor Ahnold the Terminator has much better access to economic models, economists and experts in the field than I do.
Ahnold must have known that revenues in California from property taxes were about to go into the tank. They have.
Along with housing the State also lost revenues as people tightened up and bought less and less thereby bringing in less sales tax. With unemployment rising, State Income Tax revenues will also be lower. Ahnold knew this.
Now with a huge deficit in the State budget our Governator blames the Democratic-controlled legislature for spending, spending and more spending.
Blaming Democrats for tax and spend is like blaming a junkie for shooting dope or a lion hunting prey. Unfortunately in Washington D.C. during the Bush administration, the Republicans tried to imitate the Democrats, thereby deserving the clobbering that they took this last election.
Democrats build constituencies by handing out benefits and juicy contracts to public employee unions, trial lawyers and any other group they can buy off with tax money.
So the fault cannot lie with the Democrats. Democrats do what Democrats do.
The fault lies squarely on the shoulders of our Governator.
Knowing full well that revenues to the State of California were about to tank, the Governator approved budgets that increased spending rather than cutting spending.
When you or I have less money available, we cut spending. California increased spending. Since Ahnold chased out Davis during the recall election California has spent over 30 billion dollars more than was spent by Davis.
Obviously the Terminator lacked the cojonerators to take on the public employee unions, other special interests and we are now going to pay for Ahnold's lack of courage.
TU HERMANO LATINO
In an article written on the 5th of January of this year that appeared in the Wall Street Journal written by Susan Schmidt and Maurice Tamman we find out how this real estate disaster was moved along by Congressman Joe Baca and the Hispanic Congressional Caucus. (Tus hermanos Latinos!) .
In Baca's San Bernardino District, 9200 homes have already been lost to foreclosure with many more coming. With 58% of the population being Latino and with the greatest increases in home ownership coming among the Latino population, one must assume that the majority of these foreclosures fell upon Hispanic home owners.
Latino home ownership nationally rose by 47% from 2000 to 2007. The national number grew by only 8%.
In 2005 alone Latino ownership rose by 29% with risky sub prime, liar and stated income loans growing by 169%.
Baca's district is the number 5 district with the highest number of foreclosures in the nation. Nationally the foreclosure rate was 4.1 per 1000 residents. In areas where Hispanics compromised more than 25% of the population the figure rose by 50% to 6.1 per 1000 residents.
The Hispanic Congressional Congress established an organization called HOGAR. The idea was to increase home ownership among Hispanics. HOGAR had multiple ties to the sub prime lending industry.
A WAMU vice president served as Chairman of the Advisory Committee. Present also were Fannie Mae, Freddy Mac and even Countrywide Credit, whose Chairman Mozillo was the poster child for the sub prime disaster.
Since then, WAMU had to be bought out or go bankrupt with the same situation facing Countrywide. Freddy Mac and Fannie Mae were taken over by the Federal Government.
For a $150,000, contribution HOGAR would promote your financial products no matter how bad they were to the Hispanic community.
Hispanics along with Afro Americans have been crucified in this real estate meltdown. This meltdown has been the worst catastrophe ever suffered by the Hispanic community in this country.
Moral of the Story: Beware of gift-bearing Governators and tus hermanos Latinos in the Hispanic Congressional Caucus.