House Republicans

http://news.yahoo.com/s/ap/20080926/ap_on_bi_ge/financial_meltdown

Gonna give credit where credit is due: I'm very thankful to the House Republicans for holding up against the bail-out. I hope they don't give in to Bush/Paulson's financial terrorism.

The article discusses WaMU also.

FWIW, I took out a sub-prime ARM with WaMU in 2004 and dumped it on the market in 2006. When I bought real-estate in CA, I didn't have enough of a credit record for them (since I was just out of college); however, the brokers had no problem getting WaMU to fork over ~$350,000. I was responsible, but I knew something was wrong when they could give a fresh-out-of-college kid making $80,000/year a $350,000 loan -- a sub-prime loan (a 2/28 ARM).

When I took the loan, I knew I was playing with fire. However, my mentality was that I was young, could gamble, and had no problem with declaring bankruptcy. I wanted to leverage it up, so I made a 20:1 leveraged bet in real estate. My calculation was that appreciation would continue for at least one to two more years. I then dumped before the 2 year period was over on the 2/28. I came out ahead when I sold my property -- but I actually sold and paid the pre-payment penalty (~$5000) because I was certain the market was about to capitulate in 2006.

The Case-Schiller indexes were just starting to be traded. I made my decision based on talking to real-estate agents and watching stocks like Beazer Homes and KB Homes on the stock market. When they started to capitulate from their peaks is when I bailed.

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