Ponzi scheme/Gov’t bailout

I was reading the Virgin Island Daily News today and something struck me.  There were side by side articles about the $50 Billion Ponzi Scheme and the $700 Billion bailout.  I noticed similarities within the words written for the different articles.

If you look at the bailout article it says that the lending institutions were lending money they didnt really have to people who eventually would not be able to pay and the lenders were betting on housing prices to keep going up, thus funding the previous loans.

What is the definition of a Ponzi Scheme?  As defined by a Google search  “A Ponzi scheme is a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from profit.”

Apparently the United States taxpayers are paying out on the biggest Ponzi Scheme ever.

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How about that election!

I am going to go a little off real estate info for a minute here.  On Tuesday this week the United States of America held presidential elections and on January 20, 2009 the newly elected president will take his oath of office.  Presidential elections mean more to me now that I live in the Virgin Islands because we are a territory and cannot vote for president.  I have missed two elections since I moved here.  They are really the first elections I have wanted to take part in.  I always thought that no matter what, I would not like what happens in the White House, so it would not matter who was sitting in the Oval Office.  I felt very differently about the 2004 and 2008 elections.

Here in the Virgin Islands, because we could not vote, many people became supporters both physically and monetarily.  We were the cheerleaders and bakesale fundraisers in a game we were not allowed to play in.  It seems there is a huge sense of pride in the Virgin Islanders as they have adopted President-elect Barack Obama as their own.

President-elect Barack Obama means a lot of things to a lot of people.  He is a minority.  He did not come from a privliged family.  He is a family man.  He is a father, a husband, and a grandson.  He has faith.  He was a Senator for Illinois.  On January 20, 2009 He will be President of the United States.  I have been reading articles in the paper and watching the news.  Many people are mentioning that he is the first black president.  This is a big step forward for a group of people who would not have even dreamed it possible just 40 years ago.  This step forward is not just for black peoople, but for any minority including women.  His message is that you can be whatever you envision yourself to be.  Wheather that is the best plumber in the area or President of the United States.  There are still people who would try to hurt the president and his family just because he is black.  I hope we can get past the color of his skin to just see what kind of president he is to be.  

Let us not focus on the color of his skin.  Focus on what he says, what he does, and how he handles situations.  Does he listen to the people?  Does he keep his promisses?  Does he conduct himself in a Presidential manner? 

It was his message and the sense of hope that I was attracted to.  It would seem that  George W. with his failures has actually set up President-elect Obama to succeed.  We will have an intelligent, articulate, and energetic soul in the White House who may actually remember that he works for We The People of the United States, not for his family and his cronies.

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Closing on property, The Loan Stateside

After reading the previous posts, you may be asking yourself, why would I use a lender on island?  Well, you may have to.  St Thomas and the other US Virgin Islands are territories of the United States, not states themselves.  Although the laws and citizenship are US, there are some differences that become more noticable when trying to purchase property here. 

If you have a good relationship with your bank or credit union in the states, or if you own property in the US, you may be able to use a stateside lender.  The problem is that lenders in the states cannot use a property in the USVI as collateral on a loan.  This means you would have to own something in the US of equal value to what you are purchasing in the USVI.  If you default on your loan in the USVI, the lender would forclose on your US property.

Unfortunately when it comes to finding a financial lender in the USVI, there are very few choices.  We have recently had the opportunity to use lenders located stateside that are licensed to practice in the USVI.  That is a welcome change.  Half of the transaction is still on island time, but it seems to move along a bit better.

Buying a first home or a vacation home should be an exciting experience, not one you loose sleep over.  I have been looking for a home to purchase since I first moved to St Thomas in 2004.  I know that sometimes it will be years before you see the home you love.   I will help you find that home in paradise!


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