Welcome to the one spot where you will find the truth (in my opinion) about current events and the state of our Country. Please read at your own risk, I am not one to worry about being "PC" and I dont care about anyone's feelings. This is the real world where politics are corrupt, life is not fair, and the world aches for change but no one is actually willing to work to make a difference until now! I am Savago and this is......Savago Says!

Wednesday, April 1, 2009


For my first post I am going to tackle a big issue: The foreclosure crisis in America and who is responsible. I might be the biggest supporter there is of a free market and capitalism so it should come as no surprise that I am sick and tired of hearing about how the big banks got us into this and how everyone is a victim. Here are the actual facts

1. You and the bank entered into a contract they gave you money to buy a house and YOU are responsible to pay them back.

2. No one forced you to sign the contract (otherwise it wouldn't be enforceable) and you should have read the fine print.

3. Ignorance is no excuse!!!! Every mortgage application should have a big disclaimer on it that reads: If you need someone to explain how a mortgage works then you are DENIED and are deemed too stupid to ever buy a home!!! THANK YOU PAY ATTENTION IN SCHOOL IN YOUR NEXT LIFE!!

All of these contracts were different, some were 30 year fixed and some were adjustable. Now in a good market everything was gravy the people with 30 year fixed mortgages kept paying and if they fell behind they sold their house. The people with ARM's paid a lower rate and then refinanced when they needed to because the homes were worth more.

In a bad market there is trouble, people lose jobs and struggle to pay and ARM's can't be refinanced because there is not enough equity in the underlying asset. Now I understand the recession is bad and I feel for everyone out there struggling. My family has been hit just as hard as everyone else. However, what happened to personal integrity and pride. How is it that it is viewed as OK to walk away from your home. What has happened America? Are we satisfied with being a nation of deadbeats?

The other problem is our Country's sense of entitlement. I admit I come from the generation that has a very bad case of it. As my mother always says "if you want something, work for it"! I mean honestly you are 27 and make $70,000 a year (I live in DC I know it sounds crazy) do you really think you can afford the $800,000 home you financed 100%, the Beamer in the driveway that you put nothing down on, or how about the furniture and TV you bought at Best Buy with no payments for 12 months. Seriously, I mean $70,000/ year minus $48,000 in home interest, 12,000 in principal, $600 a month for a car payment, plus regular expenses............you are BROKE!!!! If there is anything about this that is a shocker, you should probably never have children.

Now I will be honest the bank bailouts piss me off too. Banks got overly aggressive and gave credit to way to many people. I honestly think they should suffer too. However, the loans the banks made were typically good loans. You see it isn't the loans that were bad. If people held up there end of the contract then this would never be a problem. It is us the American people that are the problem, banks failed to realize that there has been a major culture shift in the U.S., Today people will take a loan and as long as it benefits them will pay it. However, when things get tough it is socially acceptable to just walk away. In my grandfather's day (the age of the great U.S.) he would starve himself before he would have defaulted on a loan and was shamed. Where is the shame America? Now don't get me wrong I am a proud American, I love my country and I am doing my part to hold up my end of the bargain. But is it really a shocker that we are beginning to fall behind other countries and it is predicted in the future the U.S. wont be the super power?!?

In my next segment you can hear me rant and rave on what is wrong in corporate America, particularly Executive Pay, and what is wrong with Politics!

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