"It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old institutions and merely lukewarm defenders in those who would gain by the new ones." Machiavelli
SubprimeBy DIA, Section News
In today's TU business section they offer this nugget
Most reports have suggested that the Capital Region, along with upstate New York, has mostly avoided the subprime crisis, as mortgage default rates are generally lower here than in much of the country.Apparently they missed my report back in October. Anyway, as I reported, Albany's lowest income neighborhoods are full of subprime mortgages. Remember to thank your banker for doing their part to help recapitalize Albany. A ZIP code including the West Hill section of Albany, 12206, had the state's third highest number of subprime mortgages held by non-occupying borrowers.People got no money down loans to buy properties in West Hill. Although they probably said they planned to live in them on their applications, they did not. Purely speculative investing driven by mortgage brokers and bankers pure greed. And now they will all just walk away when the higher payments hit and the banks will be hanging on to a 100 or so properties in West Hill. Throw in a little national recession, a city in financial crisis, a broke ass state government...add incompetent city leadership, a violent gang problem in the neighborhood, tighter lending standards...simmmer for 2-3 years and then get out the bulldozers. It also should be noted that on November 16th the TU's business section featured a former Keycorp Banker who makes a living giving financial advice. Here was the headline. Brighter days for economy in analyst's outlookHere was his take on the housing market. Former KeyCorp economist says worst of housing decline has passed, manufacturing remains strongI look forward to the Times Union business section running an article in a few months saying that most reports indicated a bright economic future and no one could've forseen this mess in advance. Right around the time that $600 check shows up in the mail from the US government. If the bankers were wrong about everything the past 5 years, what are the odds that the bankers who were in charge of the Recapitalize Albany plan were right about that?
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