Tuesday, July 3, 2012

"How very interesting!"

Reading the post How very interesting! on Daily Pundit last week--behind again!--I read that the Cato Institute and the Koch Brothers had settled their dispute(s). 


Blah, blah, the new CEO of Cato is "John Allison (the former CEO of BB&T)"... and the post goes on to quote a New York Times article about Allison and BB&T:
After the Supreme Court upheld the right of local governments in 2005 to condemn private property and hand it to someone else for commercial development, he says, BB&T refused to make loans to developers who obtained property that way.
He also says BB&T decided not to offer the controversial “pick a payment” mortgages that got so many of its competitors into trouble. Such loans, also known as “option A.R.M.’s” or “negative amortization loans,” allow borrowers to make payments that don’t even cover the interest on the loans, which causes the amount they owe to grow.
“While we did not foresee the decline in the real estate market, we knew home prices would not continue to appreciate at 15 percent per year forever,” he says, adding that his bank knew that pick-a-payment loans would be trouble for many homeowners.
“We believe Rand’s concept of the ‘trader principle,’ where life is about trading value for value, where both parties benefit from the transaction,” he says.
 BB&T, which holds the paper on Alte Schloss Drang, is run on Randian Objectivist principles!

1 comment:

Anonymous said...

I just checked, they don't offer new mortgages out here (mostly a SE US company). Sad to see that, I wanted to apply through them. (Yep, working on closing a real estate deal, which makes us pretty unique!)
-Erik from Seattle