One Way Street

The Wall Street Journal’s front page article How the Subprime Mess Hit Poor Immigrant Groups leaves out one important scammer. In this case the implied victim. Naira Costa was not the master mind in qualifying herself for a loan that her position as a housekeeper made impossible to pay back. She is a low income immigrant that could only pay back a $713,000 subprime mortgage for a California home if values went up. But she stood to gain the most if the get rich scheme worked. If she had done the scheme two years earlier I doubt she would feel remorse and return the profits. She knew how much she made and how much the loan was for. She understood that she would only be able to pay it back if the homes value increased. Now she feels sorry that it has ruined her credit and she did not get rich. So who is the victim? Ms. Costa will not be paying back the money. The bank will be bailed out by the government. The government will tax the hard working middle class. So I better stop writing on this blog and do some work.