WOW! 60 Percent of Marianas in Foreclosure

[Joanne98]

SAIPAN, Northern Mariana Islands — The U.S. credit crisis has extended far out into the Pacific territories.

Sixty percent of homeowners under a 10-year-old government-backed loan program in the U.S. Commonwealth of the Northern Mariana Islands are in default on their loans, The Marianas Variety newspaper reported, citing the Marianas Public Housing Trust and the Marianas Housing Corp.

Lawmakers say many homeowners could be forced to move into smaller homes or move out of the territory because they cannot make loan payments. The loans were issued under a $10 million program set up in 1998.

Republican Sen. Paul A. Manglona said lawmakers are alarmed by the high percentage of borrowers that are in default.

http://www.chron.com/disp/story.mpl/ap/fn/5637904.html

I wonder if the thugs own property in the Marianas?

[Nitrogenica]

1. I bet Tom Delay does.

"DeLay traveled with his family and staff over New Year's of 1997 on an Abramoff scholarship endowed by his client, the government of the territory, to the Marianas, where golf and snorkeling were enjoyed.

DeLay fully approved of the working and living conditions. The Texan's salute to the owners and Abramoff's government clients was recorded by ABC-TV News: "You are a shining light for what is happening to the Republican Party, and you represent everything that is good about what we are trying to do in America and leading the world in the free-market system"

Later, DeLay would tell The Washington Post's Juliet Eilperin that the low-wage, anti-union conditions of the Marianas constituted "a perfect petri dish of capitalism. It's like my Galapagos Island."


Exerpt from "The real scandal of Tom DeLay"

http://www.cnn.com/2005/POLITICS/05/09/real.delay/

[HereSince1628]

2. Hmm would these be the sweat shop owners or just the middle

managers of the sweat shops?


It's terrible to see them come to this. Abramhoff is undoubtedly in tears.

[Warpy]

5. My guess is that they are both

plus a few of the worker bees who got together to buy a place, five to a bedroom.

Sales are down because the US consumer is done. He's tapped out and most of his income is now going to servicing debt, leaving barely enough for food and fuel to get to work.

[El Pinko]

3. The Marianas are home to tons of low-paying sweatshops...

By producing goods in the Marianas, they can put "Made in USA" on them, but they do NOT have to pay US minimum wages there. It's no wonder the working stiffs out on those little rocks in the ocean can't make their payments.

[sandnsea]

4. No sympathy from me

Another "God Damn America" moment for the US Hall of Shame.

[Joanne98]

6. BTW the thug quoted in this article wants Bush to bail them out..

[ThomWV]

7. 3 things seem wrong here

1st, this is a 10 year old program, and presuming that the loans were for 20 years, or even 30, does it make sense that with that many year's worth of equity in the homes that many would default on them.

2nd, with loans that old the payments would be relatively cheap in todays' money if there was any sort of inflation rate at all, which is likely too.

3rd, and this one really stood out, it would seem from what we see above that at least 60% of the nations's homes could be financed for a mere $10 million, by contrast in San Diego that would cover about 20 modest homes. Houses (at least the ones that are financed) must be very very inexpensive the marianas That certainly doesn't sound right.