This past week, several news outlets reported on the recent
re-finance of Facebook CEO and founder Mark Zuckerberg’s $5.95 million
California mansion.
The NY Daily News reported that Zuckerberg’s unnamed lender
has provided a 30 year adjustable rate loan at 1.05% interest. As Greg McBride of Bankrate Inc.,
points out “When you can borrow at a rate below inflation, you’re borrowing for
free”. He makes a point.
While millions of American homeowners confronting legitimate
hardships attempt to stay in their homes, they’re being refused loan
modifications – forcing them to continue paying upwards of 8% (in many cases,
higher) while deals are being cut to guys like Zuckerberg, who can clearly
afford to pay the higher rate.
For those who believe that “class warfare” is simply a
manufactured term used in the heat of the current political season, this might
be proof that the term has legs.
By definition (according to Merriam-Webster), class warfare
is: “opposition of and contention between social or economic classes; esp :
such a struggle between or felt to exist between the proletariat and the
capitalist classes”
Unfortunately, no one is reporting who Zuckerberg’s lender
is. However, if a lender who
received bailout or TARP money owns his loan, this clearly fits the definition.
Using the tax dollars of the soon to be foreclosed and
giving them to banks who then turn around and provide those dollars to the
mega-rich, with terms available to almost no one else, while denying assistance
to those who provided the tax dollars, sure sounds like class warfare to me…
To read more on the story, follow this link to The NY Daily
News.
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