Where it All Comes From

When I was State FFA President in Indiana a lifetimemeans that, whether you like it or not, your house
ago, I was presenting a program on agriculture to anand the others on your street is quite probably
elementary school class in inner-city Indianapolis asfinanced by Wall Street no matter where you live.
part of a photo opportunity for Farm-City Week.I hate what has happened to our economy. Yet, just
Hoping to teach the kids the importance of farmers,like everyone else, I didn't want to put any more
I confidently started my presentation by asking ifdown on a house than anyone else. I wanted my
they knew "where hamburger comes from?" And,payments to be as low as possible so I could afford
just as confidently, a third grader announced hisan even bigger house. Being self-employed, I wanted
answer: "Hamburger comes from McDonald's."as little hassle as possible in proving my income
I was thinking of that story today when watching abecause I wanted the deal to be painless. I've made
recent news story updating the federal bailout of badmy payments every time, and on time, but I'm as
mortgages and Wall Street.guilty as about anyone else because I, too, wanted
As the son of a butcher and grocery store owner, Ithe sweetest deal I could get.
think it's important to reveal to you (if you didn'tWe've got to fix this. And, it's possible that some of
already know) that the hamburger you purchasethe bad guys won't get what is coming to them as a
probably didn't come a local farm. More likely thanresult. Yet, if credit continues drying up and the
not, it's the product of a huge feedlot a thousandeconomy continues to struggle, you won't be able to
miles away. Perhaps it's even from an enormoussell your house because no purchaser will get the
ranch half a world away in Australia. That's reallymortgage they need to buy it. Your employer won't
where hamburger comes from.be able to fund your paycheck and you won't be
Your mortgage is similar. You probably think of it justable to finance your kids' college education.
like a burger - it's a local product. When I wasI want the bad guys and gals from the world of
growing up, your mortgage came from the singleshady finance to get sent to the big house.
bank in our home town. You paid your houseHowever, I just don't think enough of us realize that
payment when you cashed your paycheck. And - atwe may have to risk OUR houses because of the
least in our state - banks couldn't even cross statechallenges that may no longer be on the front page
lines...and, for a time as I recall, even county lines.-- but continue to loom.
Now, your mortgage is often sold to you by aThe problem is that we are all involved in this. My
broker - who, in turn, sold it to some other entitymom said often that "Money doesn't grow on trees."
located someplace else, who probably packaged itThe problem is that, just like hamburger, it also
with other loans and sold it again...and again. Thatdoesn't come from where you think it does.