School Children Advise Obama

These kids seem pretty smart to me. They wrote some pretty well thought out papers, I thought.

Pre-Marital Sex Destroy Real Love Everytime

This story is heart-breaking to me. These girls have totally lost their innocence and not even their parents are standing up for them. It seems like parents have just given up. Parents today just assume their girls are going to be having sex, so instead of teaching their daughters to respect themselves and wait, they just stand back and watch. Then these parents always seem so surprised when their teenager tells them their pregnant or has an STD. Then the parents steps in and decides to be parent again. Where was that parent BEFORE she throw her life away?

I have been doing middle school ministry for almost a decade and I have seen girls give themselves away so many times. Girls, you are so worth the wait. Any guy that tells you different is not worth the ground he is standing on.

There is absolutely no love in pre-maritial sex, girls. Pre-maritial sex is all about lust and relationships based on lust never last. Really true love is based on so much more. Don't let yourself fall into the trap of believing that you have to have sex to be popular. It's just not true.

There are ways to protect yourself:
* Avoid tempting situations: Double date, don't go into your bedroom with a boy, always tell people where you are, etc

* Decide in advance: Choose your values in advance so when tempation comes you have them to fall back on

* Find an Accountabilty Partner: An accountability partner is someone who is going to watch out for you. An accountability partner is one of the most important things you can invest in. Find a friend or family member that you can trust. Pick a time and location to meet with them every week or more often if you want, and discuss what is going on in your life. What have your struggles been this week? What have your success been? Where have to you trimphed? Where have you failed? Honesty and trust are key because you can't be afraid to tell the whole truth to your accountability partner.

What Every Teenager Needs to Know:
They are not alone on this journey of life. Sometimes tough things happen but everything happens for a reason. I am convinced that the Middle School years are the toughest. In some situations they are expected to still act like children, because they are. But in other situation, people expect them to act like adults, so when they encounter a new situation they either act out or withdraw because they feel lost and confused. And to add on top of that they are experiencing hormones and feelings they don't understand and that can be painful. They search for whatever they can find to take the pain away and most of the time those solutions are only temporary, so they try the "drug" again. So the next thing you know, you have a middle school student addicted drugs, alcohol, sex, or whatever they chose for their "drug". As an Oasis leader, I try to give my girls a permanent solution to the pain and that is Jesus. Jesus's love is never temporary.

Parents WAKE UP!!! Sex is every where. Teenagers are being bombared with it from music, TV, and other media and seldom do they show the negative consequences. Girl are sexualized in music and treated like sex objects. What is that teaching our girls or our guys? When was the last time you saw someone on Gossip Girl get an STD or come home pregnant and heart-broken because now the guy wants nothing to do with her or her baby? Even in Juno the movie, the 16 year old gets pregnant and there was no negative consequence. She just moved on like it never happened. In Friends, Rachel gets pregnant and somehow is able to afford a baby and her huge New York city apartment with a job at small coffee shop job working part-time. You never see her struggling with money, trying to get food stamps or welfare, or trying to find a babysitter. Somehow everything just always seems so perfect. That is not reality and our girls are being handed a pack of lies. Our men are too. They being taught if they aren't having sex, they aren't cool. Guys need to hear this too. There is nothing "cool" about it. Just think, someday you might be a father. Would you want someone to be thinking about your daughter they way you are thinking about your girlfriend. I doubt it. She deserves respect and so do you.
The most important thing you can teach your daughter is self-respect and confidence. Fathers, I think, are the most important person in a daughters life. Daughters without fathers in their lives are far more likely to get into destrucive behavior. The girls are looking for love and they think love=sex, so the first guy that comes along and says sweet things to them...they are hooked. The first guy a daughter hears "I love you" from should be her father.

1-800-Quit Now

Quit Smoking. It's the best thing you can do for your health.

Domestic Violence Hurts Everyone

Domestic Violence does not just affect women. Men can also be victims of Domestic Violence. The most innocent victims of Domestic Violence; however, are the children. Last year at the YWCA of St. Joseph County were served about 600 children. 10% of the children were victims of some sort of physical, mental, or sexual abuse. Children that are victims of abuse of significantly more likely to be involved in abuse as an adult, either as the abusee or the abuser. We have to break the tragic cycle of abuse. Almost 70% of the children were born to single mothers, most with no income or high school diploma.

These children need someone to be on their side for a change.

Here's how you can help:

* Become a Women of Vision

* Donate Cell Phones

* Have a Garage Sale and donate the proceeds to the YWCA

* Have a food drive or collect winter coats, hats, or scarves drive for the residents

* Plan a "Baby Shower" and donate the items to the YWCA

* Help us with our Christmas Wish List

Thank you in advance! The children are worth it. Never think that if you aren't a big donor, you can't help.

Mark 12:41-44 (New International Version)
New International Version (NIV)
Copyright © 1973, 1978, 1984 by International Bible Society

The Widow's Offering
Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins,[a]worth only a fraction of a penny.[b]

Calling his disciples to him, Jesus said, "I tell you the truth, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on."

Send all Support Checks or bring donations to:
YWCA of St. Joseph County
1102 S. Fellows
South Bend, IN 46601

All contributions are tax-deductible.

Our New House

It has been a crazy few weeks. Apparently, I haven't been updating people on the house very well. Sorry Shere.

The process seemed to be going really smoothly until we got the inspection back. The Realtor didn't think we should get one, but I'm glad we didnt listen to her. The inspection said the furnace was bad and several other things like the electrical panel and roof have problems.
We got several different quotes from different companies on the furnace and the electrical panel. Steve's dad, who is does electrical work, said that the electrical panel is fine and that the inspector may have been wrong.

Steve and I sent a counter-offer to the bank with a request that they put in a new furnace before closing. They refused and said they only sell foreclosures "as is." Needless to say, I was pretty upset with that. We almost walked away from the deal because we dont really have the money for a new furnace. We could probably scrape it together out of our emergency fund, but i dont really want to do that. My dad has offered to pay for our new furnace and have it installed before closing. I am so greatful for that. I wish we didnt have to do that though. I hate borrowing money from my parents.

Our originally closing date was November 21st, but the bank changed it to December 3rd. I guess this is sort of a good thing for us because now we wont have a mortgage payment until February. It does make things busy for us during the Holidays though.

We are trying to plan our budget right now around all the work that needs to be done. Most of the work is cosmetic, except for the furnace. The previous owner left the place a big mess, tore all the light fixtures out of the ceiling and even stole the air conditioner. The biggest challenge right now is finding the time to get in the new house and clean up before we move in. With the original closing date, we would have had 2 weeks with both the house and the current apartment, but now we will only have a few days. The bank did say that we could get in and clean before closing but we wont have the utilities turned on yet.

Our budget is going to pretty tight for the next few months but we can survive. We have done this before. When Steve and I had our hours cut last summer, we lost almost $500 of monthly income and we managed to survive. It sure wasn't easy. Last month, Steve got a raise and they put him back to 40 hours. Thank God for that. I told Steve this is the last time I want to move during the Holidays. It just way to busy during the Holidays. I have this afternoon off from Sears, so I plan is to start cleaning and packing a bit. Anyone that's bored and wants to come over and visit, give me a call.

I'm still a little nervous about the whole process but I think we can get this done. Once we get started on the process I think I'll start to feel better. I do look forward to going to Lowes and picking out the light fixtures and sinks and stuff.
WWDRS? What would Dave Ramsey say? If we play our cards right and don't get to off tract, this should be a great thing for us in the long run.

Extreme Savings Plan

Extreme savings plan

Extreme Savings Plan
Nov. 12: From unplugging appliances before going to work, to bringing their own lunch each day, WRC's Jim Handly profiles one couple's mission to save their cash.

Can You Survive Without a Credit Card?

Source

3 Steps Back to the Sanity of Cash

Waiting until you have the money in your pocket has its disadvantages (we're hand-washing our dishes) but it will buy security later. Call it "real-income living."
By MP Dunleavey

"While many Americans can and do handle borrowed funds responsibly (taking out what they need, repaying what they owe), millions more have slipped into a fantasy world, thanks to credit -- a fantasy that you could buy now and pay later. And that somehow, somewhere, when you least expected it, you'd pay it all back. "

Thanks to all that easy money, a fog descended: Credit made us all believe we were richer than we were.

Step 1: Get out of the fog Here's a giant reality check question:

If every ounce of credit now available to you, in the form of cards or home equity or whatever, if all of it dried up, what would your life be like?

The fact that that's hard to imagine is a sign of how deeply entrenched credit-think has become.
Studies by behavioral economists show that credit divorces you from the "ouch" of spending actual money -- and thus it not only changes how much you spend (people typically spend more when they use plastic), it also creates fuzzy thinking around your finances.

One study showed that shoppers who paid with plastic didn't remember what they'd spent, whereas those who used cash did. (If you've ever been to a mall, this isn't news.)
Credit creates a fog. Cash will snap you out of it.

Step 2: Think of Grandma

The second step is switching to a cash-based mindset. That doesn't mean giving up all forms of plastic. It means learning to think and spend based on how much money you actually have.
That's how your grandma did it, and my grandma, and anyone's grandma who lived back in the 1930s, '40s or '50s -- before you could borrow yourself into oblivion.

Grandma (and Grandpa) somehow managed to furnish a house, raise and feed a family, procure a car and save for emergencies -- all with cash. Why? Because credit as we know it today did not exist. Actual credit cards became common in the 1970s. When you bought something, you paid for it and then got the item, not the reverse.

What was it like, living on cash -- and why is it so powerful that it can turn your financial life around, even now?

Step 3: Find your means

Alas, "living within your means" is just a giant personal finance cliché at this point. People have lost track of what it signifies. LWYM has come to mean that you're fine if you spend every dime you make.

If you have to use plastic to cover a few gaps here and there -- your vacation, the holidays, some groceries -- that still counts as "living within your means" because you eventually pay it all back. Probably.
So it's really about spending a small portion of your income to live, and saving a large chunk of it -- for emergencies big and small, for the unexpected and for a warm, cozy, secure and happy future.

You're not going to turn Tupperware containers into shoes. And I'm not suggesting you grow a bailout garden and can green beans (unless you're so inclined). As scary a time as this is, we as a country are unbelievably wealthy compared to those who survived the 1930s.

But we all need to come down to earth, to a more solid and sensible way of living, with cash as the anchor.

Published Nov. 5, 2008

The Election is Over

The election is finally over. This is the longest election cycle that we have ever had. I voted for McCain. McCain had his faults, but I liked his stance on social issues. McCain also has the experience that this country needs. We are in 2 wars and in the middle of a perceived financial crisis. This is the not the time for eloquent speeches and fancy ads. We need change, but I don’t think it’s the change that Obama wants to bring. My vote for McCain was more of a vote against Obama then a vote for McCain. I am nervous about the direction this country is heading. I believe most American people want less government interaction in their lives, not more.

I understand that everyone has to pay taxes, but I do not believe it is “patriotic” to pay more taxes, so people who don’t pay taxes can get more free money from the government. I do not agree with Obama’s stance of "spreading the wealth around." I already pay a bunch of taxes so lazy, high school dropouts can keep having kids out of wedlock paid for by my taxes. I pay for Medicaid, food stamps, welfare, WIC, TANF, and some people that qualify for those aren't even American citizens, so they don’t pay taxes either. Why do they feel entitled to more of my money? Maybe they should get an education, go out and get a job, and better themselves, so they don't have to rely on the government for money. I'm glad I don't have to rely on the government to be successful. Welfare was originally designed to be a temporary help to the poor, not an excuse to be dependant on the government. It has become a “hand-out”, instead of the “hand-up” it was intended to be. If Obama said he wants to cut taxes for 95% of Americans. Does he not realize that 30% of Americans don't pay any income tax? You can't give someone a tax-refund when they didn't pay any taxes. What you giving them is a government welfare check?

I have to say that I am very disappointed in the results. I had a least thought that my state of Indiana would think with their head and not blindly follow the media. Indiana did look like it was going to go for McCain until the very end. I guess more money still trumps substance. I don't think that it's fair or right that we elect a President because he has more money and can give better speeches. This year people didn't know or care about the issues. I heard so many people say that they were voting for Obama because he made them feel good, or he got young people to the polls, or he is historic because he can be the first black president, or he was energizing, etc. Those are not reasons to vote for someone. What does he stand for? What is he going to do as President? They don't know or care and that scares me.

I hope NBC and Hollywood are happy their candidate won. It is a sad, scary place we have gotten in this country when news stations can actively campaign for a particular candidate. What happened to objective journalism? What happened to when journalists would fully tell both sides of the story and let the audience decide their opinions.

I pray for this country. I can only hope that Obama can bring action to his "inspiring speeches."
I hope that I am better off in 4 years then I am today, but if I am it will not be because of who the President is. It will because I worked hard, got out of debt, spent less then I made, and strived everyday to better myself.

"You will be the same person in five years as you are today except for the people you meet and the books you read."
- attributed to Charles Jones

The 10 Cannots

The 10 Cannots

By William J. H. Boetcker
(misattributed to Abraham Lincoln)

1. You cannot bring about prosperity by discouraging thrift.

2. You cannot strengthen the weak by weakening the strong.

3. You cannot help the poor man by destroying the rich.

4. You cannot further the brotherhood of man by inciting class hatred.

5. You cannot build character and courage by taking away man's initiative and independence.

6. You cannot help small men by tearing down big men.

7. You cannot lift the wage earner by pulling down the wage payer.

8. You cannot keep out of trouble by spending more than your income.

9. You cannot establish security on borrowed money.

10. You cannot help men permanently by doing for them what they will not do for themselves.

William J. H. Boetcker (1873 – 1962) was an American religious leader and influential public speaker. An outspoken political conservative, Rev. Boetcker is perhaps best remembered for his authorship of a pamphlet entitled The Ten Cannots. Originally published in 1916, it is often misattributed to Abraham Lincoln.

Source

An American Creed

I Do Not Choose to Be a Common Man

It is my right to be uncommon—if I can.

I seek opportunity—not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me.

I want to take the calculated risk; to dream and to build, to fail and to succeed.

I refuse to barter incentive for a dole. I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia.

I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat.

It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations and to face the world boldly and say, “This I have done.”

By Dean Alfange

*Originally published in This Week Magazine.Later printed in The Reader’s Digest, October 1952 and January 1954.

The Honorable Dean Alfange was an American statesman born December 2, 1899, in Constantinople (now Istanbul). He was raised in upstate New York. He served in the U.S. Army during World War I and attended Hamilton College, graduating in the class of 1922.

Source

Secrets to Raising Healthy Boys

Part 1


Part 2

A Baby's Prayer

Jeremiah 1:5 (New International Version)
"Before I formed you in the womb I knew [a] you,
before you were born I set you apart;
I appointed you as a prophet to the nations."

Jeremiah 29:11 (New International Version)
For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future.

How They Voted?

Check out here how your Senators and Representatives voted on the bailout. I think it's time we sent these people who like to spend our money home.
Source

Now You Can Vote Out the Bozos

Lest you forget...At the polls, remember to vote out those bozos who ignored our opinions and voted for the $700 billion bailout! See how your representatives and Senators voted.

INDIANA
Democrats — Carson, Y; Donnelly, Y; Ellsworth, Y; Hill, N; Visclosky, N.
Republicans — Burton, N; Buyer, N; Pence, N; Souder, Y.

Bayh (D-IN), Yea
Lugar (R-IN), Yea

Don't forget to vote on November 4th.

Moving Again

I can't believe Steve and I are going to be moving at Thanksgiving again this year. I have decided that this is the last time we are going to move during the Holidays.

My dad's bank foreclosed on a house and he suggested that we buy it. After much thinking and praying and looking at our budget numbers, we decided to go for it. I know crazy, huh? The mortgage payment is will only be about $100 more than our current rent payment. Steve's theory is that when we are ready to move to Texas, we can sell it and make a killing in Equity. It is a 3 bedroom, 1 bath, with an attached garage. It has a nice big back yard too. The house was appraised before it was foreclosed on for $60,000 and we are buying is for $40,000 with a 20% down payment. My parents offered to gift us the down payment because their parents did that for them when they first started out. I love my parents.

I can't help but here Dave Ramsey in the back of my head. He says never buy a house until you have an Emergency Fund, you are out of debt, and have a good down payment. We have our Emergency Fund and are working on getting out of debt, and thanks to my parents we have a down payment.

The house is all electric, so unfortunetly we need to buy a new dryer and a new stove since they are gas. We are going to try and sell them. The house needs a little work, mostly cosmetic. Steve is excited because he gets to use his tools. Anyone surprised? It is going to be a busy couple months. Please keep us in your prayers, as we try get all the money together we need to make the move and to fix the new house. We also need to keep our heads together and prepare Thanksgiving and Christmas.

Christian Families Targeted

Voice of the Martyrs

Please pray for our brothers and sisters in Christ who are suffering around the world.

Romans 8:34-36
Who is he that condemns? Christ Jesus, who died—more than that, who was raised to life—is at the right hand of God and is also interceding for us. Who shall separate us from the love of Christ? Shall trouble or hardship or persecution or famine or nakedness or danger or sword? As it is written:
"For your sake we face death all day long;
we are considered as sheep to be slaughtered."

2 Corinthians 12:9-10
But he said to me, "My grace is sufficient for you, for my power is made perfect in weakness." Therefore I will boast all the more gladly about my weaknesses, so that Christ's power may rest on me. That is why, for Christ's sake, I delight in weaknesses, in insults, in hardships, in persecutions, in difficulties. For when I am weak, then I am strong.

1 Thessalonians 3:6-8
But Timothy has just now come to us from you and has brought good news about your faith and love. He has told us that you always have pleasant memories of us and that you long to see us, just as we also long to see you. Therefore, brothers, in all our distress and persecution we were encouraged about you because of your faith. For now we really live, since you are standing firm in the Lord.

Consumers addicted to plastic?

Consumers addicted to plastic?
Families carry average credit card debt of $8,000.

TOUGH TIMES

By YaVONDA SMALLS
Tribune Staff Writer

$8,000.

That's how much the average American family is said to carry in credit card debt.

If they pay the minimum on this balance every month, it could take more than 20 years to get out of the red. That means two decades from today, you could still be paying off that DVD player, laptop computer and shirt you bought in the heat of the moment last Christmas.

It's an overwhelming reality for the many consumers who have fallen victim to a buy-now, pay-later society, where people take out loans and carry multiple credit cards without giving it a second thought.

"It piles up so quickly, I think, especially when you're young," said South Bend resident Kelly Sanford, who said she learned her lesson after tasting her own share of credit card debt in the past.

"You get one of those credit cards that have a low introductory rate and, before you know it, it's up to 27 percent."

Throw in the nation's mortgage crisis, rising oil and food prices and the stock market's volatility, and it's no wonder consumers are sinking deeper into a sea of red.

Fortunately, whether you're a few thousand dollars or half a million dollars in the red, you can take steps to rise above it, experts say:

-Set up a budget. First, don't wait until 2009 to start setting up a household financial plan that is accurate, comprehensive and reflective of all your debt, says Amanda Walker, manager of GreenPath Debt Solutions, which has offices in Mishawaka and Elkhart.

Add every individual debt together to determine your total debt, and mentally commit to changing your past or current spending patterns by adhering to your budget. For many consumers, budgets are vital because they provide a good reality check of what's happening right now and ways to best prepare for the future, Walker said.

Granted, budgets aren't always fun, but neither is foreclosure, she said.

-Track your cash. Take your monthly income minus expenses to see how much extra money is left at the end of the month and whether a surplus can be used to pay additional credit card payments. If you see a deficit, decide what expenses you can realistically cut, such as daily coffees and eating out. Also don't hesitate to drive your car an extra year, said Sanford, the South Bend resident.

-Say "no" to credit. Don't borrow more credit to pay off a credit bill, and consider a credit card hiatus while you're trying to climb out of the red. Lock your cards away, or cut them up, until your debt is more manageable.

That's because surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash.

"I don't have a credit card — I just have a debit card," said Saint Mary's College nursing student Caitlin Fitzpatrick. "I do know people my age with credit cards who are in tremendous amounts of debt. I just think it's kind of dangerous."

-Chip away at old debt. Make your biggest payments on debts with the highest interest first, and pay more than the minimum on your loans, says LendingTree. Also be sure to earmark end-of-year bonuses, raises and income tax returns for paying off debt, too.

-Prioritize payments. Set aside money first for debt repayment and then budget for things such as saving for college or retirement, before spending on discretionary items.

-Be realistic. Remember that while your goal is to fully pay all of your bills on time, it isn't always feasible. So if you must make a choice when it comes to bills and credit cards, pay on loans secured by collateral first, such as mortgage and vehicle loans. Then pay off utility bills, insurance, loan payments and household expenses such as groceries and gasoline. Pay off unsecured credit card accounts and medical bills last.

-Lower your interest. If your credit score is good, and you're receiving a variety of low-rate offers, consider transferring your balance to a lower-interest card while you work to pay off the debt.

Also, don't hesitate to negotiate a better deal with your lenders, who often would rather you get back on track than see you file for bankruptcy.

-Weigh the pros and cons of debt consolidation. Consolidating many debts into a single loan can reduce your number of payments and creditors, making managing your money and financial planning much easier.

But it can cost more in the long run. Most consumers end up paying for the debt over 10 to 30 years, spending more than they would have had they kept each individual loan.

-Check your credit reports. This report tells you about any outstanding debt you owe, according to Debt Reduction Lessons. You can typically request a credit report for free every year from the three major credit bureaus — Experian, Equifax and TransUnion.

Staff writer YaVonda Smalls:
yavsmalls@sbtinfo.com
(574) 235-6248

Can the Bible help you budget?

I thought this was insightful.

McCain the comedian

Sen. John McCain pokes fun at himself, his rival, and others at the Al Smith Memorial Fund Charity Dinner.

"Staying Alive" with CPR

I am not a big fan of this song. In fact, I find it kind of annoying. The only part of the song I actually understand is "Staying alive." I am posting it because of the story that goes with it. I thought it was a funny story. I want to know who had the time to figure this out. Someone had way too much time on their hands.



Study: Bee Gees' 'Stayin' Alive' Has Perfect Beat for CPR
Thursday, October 16, 2008

Sounds like the Bee Gees knew what they were talking about — and were years ahead of medical research.

The band's iconic 1977 disco anthem "Stayin' Alive" provides an ideal beat to follow while performing chest compressions as part of CPR on a heart attack victim, U.S. doctors have found.

The American Heart Association calls for chest compressions to be administered at a rate of 100 per minute during cardiopulmonary resuscitation, or CPR. Ironically, "Stayin' Alive" chimes in with 103 beats per minute, Reuters reports.

In a small study headed by Dr. David Matlock of the University of Illinois College of Medicine at Peoria, listening to "Stayin' Alive" helped 15 doctors and medical students to perform chest compressions on dummies at the proper speed, according to the Reuters report.

"The theme 'Stayin' Alive' is very appropriate for the situation," Matlock told Reuters. "Everybody's heard it at some point in their life. People know the song and can keep it in their head."

The findings will be presented this month at a meeting of the American College of Emergency Physicians in Chicago.

Source

Banking Crisis Foretold???

This article was in the New York times almost 9 years ago. It sounds like this guy could see the future. Maybe giving people loans when they couldn't afford wasn't such a good idea after all.

September 30, 1999

Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
...
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
...
Continue reading here

Wow...psychic? I may not be a smart economist, but I can't see how no one saw this coming. Oh wait, someone, this author saw it coming almost a decade ago. If someone with no income and no job tries to apply for a home mortage, they should be denied...everytime because they don't have a job or any income to pay for the mortage. Rocket Science??? No, I don't think so.
I don't the government and big banks should all take Dave Ramsey's Financial Peace University, then maybe they would stop wasting our tax dollars to fix their mistakes.