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Credit Crunch? Media Feeding Frenzy

BRYAN, TX — You and I know the media are out to make a buck. And most people know that a majority of the news is presented in a cunning way to grab your attention to increase media viewership to sell more ads to make a buck. What viewers may not know is that the recent hype on the alphabet soup mortgage companies (WaMu, AIG, FNM, FRM, …) is just that – hype. Sensationalism to get you excited to grab your attention to increase media viewership to sell more ads to make a buck.

It’s like the Dallas Cowboys training camp…

Runningback Marion Barber works hard makes lots of money but there’s no story. Not a peep about him. But if Tony Romo sneezes or Jessica Simpson coughs, BAM there’s your media frenzy. To coin a phrase used by Emmitt Smith about monkeys in the media.

So the hype about the next Great Depression (it’s all caused by Dubya Bush remember – catch me on another day to get me worked up about that unintelligent urban myth) from yesterday is gone today. The hype to make you oogle on Google is just that – to make you stop and stare. The media wants to get you excited to grab your attention to increase media viewership to sell more ads to make a buck. Make cents? Ha, ha.

Don’t be snookered into believing that the media are the authority on mortgage lending. They are the authority on how to grab our attention to increase…blah, blah. TALK WITH YOUR LOCAL LENDER. Don’t speak to someone who doesn’t have an office near you. The “lending crisis” is because big-wigs far away want to control business in your backyard. And they don’t even know what your backyard looks like, sells for, or smells like.

Don’t get worked up on a comment from a part-time reporter from Good Morning America. TALK WITH YOUR LOCAL REALTOR. The “foreclosure crisis” is because big-wigs far away gave money to people who weren’t capable of making a monthly payment. The large lenders gave unqualified consumers too much credit. Literally. Mortgage factories over-extended themselves in risk by giving credit, otherwise known as trust, to already debt-laden consumers. Doesn’t sound like good business practice to me…

If you make a mess in your office, you would have to clean it up. Your cute dog poops in your neighbors yard, who should clean it up? It’s your responsibility. Be accountable for your actions. Where in society did our ethics change to make the government responsible for cleaning up messes. Hurricane Ike? “Federal government come save me.” Billion dollar lending mistake? “Federal government come save me.” Every time we ask the government to step in we abdicate another constitutional right (ok, ok there’s another story for another day).

So who should clean up our credit crunch? Well the Fannie Mae leaders saw the handwriting on the wall back in April. Franklin Raines retired as CEO and Timothy Howard resigned as CFO in May 2008. Retired with their pretty pension plan and retirement package. Freddie Mac CEO Richard Syron pocketed nearly $19.8 million in compensation last year. And the replacement David Moffett will receive only – ONLY – $1.4M in salary and perks this year. AIG is doing it right, a bit too late. CEO Martin Sullivan was replaced in July by Robert Willumstad. Last week AIG decided to sell off assets to repay an emergency loan from the federal government.

Let me ask the question again…who should clean up our credit crunch? You are actually paying for the clean up. Your hard-earned tax dollars are being reallocated from great programs and infrastructure to cover the as… Uhm , mistakes of Franklin, Timothy, Richard, Martin, and scores of other “leaders” – read THEIVES – who have taken us for a ride.

So there, now you know how I feel, tell us your thoughts on how to fix our financial conundrum. For my opinion on home sales, let’s meet at Starback’s some afternoon 🙂

Cindy Seaton, REALTOR

  1. Joey Condon

    Holy crap!!! That is an excellent article. I’ll buy you the coffee!