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Einsteinian Insanity? FHFA Head Mel Watt Pushes Banks To Make Extreme Risk Home Loans
Submitted by Mike Krieger of Liberty Blitzkrieg blog,
Mel Watt is one of the most dangerous financial oligarch puppets operating in America today. The first time he came across my radar screen was back in 2009, when he “gutted” Ron Paul’s End the Fed bill while it was in subcommittee, something I outlined in the post: Leverage in PE Deals Soars Despite Fed Warnings; Amidst Insatiable Demand for Risky Fannie Mae Debt.
Then in May of this year, I zeroed in on his latest authoritarian maneuver after being appointed to head the FHFA in the post: New Massive Federal Database to Hold Financial Information on Hundreds of Millions of Americans. Here’s an excerpt:
As many as 227 million Americans may be compelled to disclose intimate details of their families and financial lives — including their Social Security numbers — in a new national database being assembled by two federal agencies.
The Federal Housing Finance Agency and the Consumer Financial Protection Bureau posted an April 16 Federal Register notice of an expansion of their joint National Mortgage Database Program to include personally identifiable information that reveals actual users, a reversal of previously stated policy.
In a May 15 letter to FHFA Director Mel Watt and CFPB Director Richard Cordray, Rep. Jeb Hensarling, R-Texas, and Sen. Mike Crapo, R-Idaho, charged, “this expansion represents an unwarranted intrusion into the private lives of ordinary Americans.”
So what’s Mel up to these days? Well, Bloomberg reports that:
A U.S. housing regulator plans new steps to encourage banks to lend to buyers with less than-perfect credit scores, according to two people with direct knowledge of the matter.
Watt will also discuss an effort that would allow borrowers to put down as little as 3 percent of the purchase price on loans backed by Fannie Mae and Freddie Mac, the people said.
Fannie Mae and Freddie Mac (FMCC), which have been under U.S. conservatorship since 2008, buy mortgages and package them into bonds on which they guarantee payments of principal and interest. Watt’s announcement is part of an effort to encourage banks to ease credit and follows a series of steps he first described in May.
It’s for the good of the people right? He’s a “liberal” so he’s always working for the little guy, right? Wrong.
The best characterization of Mr. Watt I’ve seen comes from realestate.com, here it is:
While some observers consider Watt’s appointment a significant lurch to the left compared to DeMarco, (he was among those named by the Democratic Socialists of America as a member of their caucus in 2009), Watt himself has raised a tremendous amount of money from banking and real estate-related corporations and trade associations. One report from the Sunlight Foundation found that for 2009, Watt had received some 45 percent of his total campaign funds from donors in the finance and real estate sector.
This is what all these phony “liberals” do. They pretend to be champions of the poor so that they can fool their clueless constituents and thus serve the oligarchy that much more effectively. This housing plan isn’t about helping families afford homes, it’s about creating artificial demand for overpriced homes so that stuck private equity and hedge fund mangers (who can no longer make it rain in the buy-to-rent trade) have some peasants to sell to ahead of the next crash.
Rule Number 1 of Oligarch Club: Always make sure you sell to the muppets before the music stops. Here we go again.
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If the United States were to put all of its Native American Indian citizens on one big reservation, then proceeded to systematically bomb the hell out of them and shoot their children... That is EXACTLY the same barbaric act that the Jewish "religion" is doing to Palestinan people ON THEIR OWN LAND today in 2014
Why USSA needs moar Wars...
To keep USSA safe.
To bring democracy & peace to our Planet.
To advance and discover new technologies.
I've seen this movie before... It doesn't turn out well...
OT: But worth the time to understand how .gov is planning for pandemic outbreak.
http://www.sifma.org/services/bcp/fema-pandemic-exercise-series/
DaddyO
Make Extreme Risk Home Loans
Been there....done that.
The clipboard guy would make better decisions
Mr. Krieger,
being able to own a mansion is a human right. And thanks to tireless liberals like Mel Watt, I and countless other Democrats will be able to buy 3 houses each and pay for them with our welfare checks.
So, why are you against people owning homes, Mr. Krieger? Are you a racist?
Hmmm... You mean the patent clerk Albert Einstein?
The phrase refers to the quote, attributed to him, that the definition of insanity is doing the same thing over and over again and expecting a different result.
+1 for sarcasm
But I have to mention that these potential homedebtors are being offered nothing but toxic debt. They won't "own" shit. This proposal is a big gift to the banks, and to anyone else who is trying to buy Right To Privacy on the cheap.
Peasants give up their rights, and get debt slavery in return. They won't even get to own a house. Peasants need to learn the difference between "own" and "rent".
Was it really that risky?
They all got bailed out at par for loans with dubious (falsely inflated by lenders or lender agent) collateral. No?
One of my old favorite sayings = how do you steal money from people who don't have any? Just give it to them.
Then bail out the lenders with QE fake money.
Yes, but the poor dupes lost everything. The lenders got their bailouts and retrieved the properties in question. Often, it wasn't even the holders of the note (retirement funds, etc.) who got the property, but those who sold the note on and serviced the note. What a scam. No wonder they are going to try it again.
And the muppets will get blamed again. Many people still cling to the notion that this is all dreamt up by bleeding heart liberal policies being shoved down the banks throats. If that were the case, why would lenders inflate property values to get people to borrow moar?
Since the banking and financial industry has frequently touted their innovations as “products”, let’s look at them in the context of product liability. Allow me to name just a few of them: “Option ARMS”, “Collateralized Mortgage Obligations”, “Credit Default Derivatives”, “Mezzanine Tranches”, “Asset Backed Securities”, "Pay-Option Adjustable Rate Mortgages" “Cancelable Default Swaps”, “Negative Amortization Loan”, “MERS”, “Leveraged Default Swaps”. It is somewhat unsettling that, apparently, it is entirely appropriate to affix the term “synthetic” to virtually any of these products.
Moving on to product liability…the government has projected that homeownership will fall from roughly 60% to 40% in the coming years. As been their habit, this estimate is probably low and the staggering 20% drop will more than likely require revision (upward).
But we know approximately 1/3rd of the people have no mortgage; so when we multiply 2/3rds (the number of people with mortgages) by 1/5th (the number of people projected to lose their homes) we get 2/5ths or 40%. It’s fairly safe to say nearly half of these “products” will result in foreclosure.
The banks have repeatedly referred to their financial junk as “products”. They have used the term again and again; they were “innovating” new financial “products”.
So the banks amazing new “products” failed about half the time; an astonishing rate. Imagine any other product that failed half the time resulting in massive damages. Lawyers would be lined up for blocks suing on theories of product liability.
It would be as if a car company released and financed a car that blew up half the time…then said that all the people whose car blew up – half of them – used it incorrectly and should be forced to pay for the financing. The banks have created a defective albeit miraculously profitable array of products then managed to blame the people it injured.
Home 'ownership' is already pretty much zero in this country, since at some point the fucking voters allowed the government to claim property rights over everyone else.
As long as a property tax exists, you have no property rights and hence, no ownership of such property.
As to who we rent from, the banks or the government, kind of Hobson's choice isn't it? The banks are the government.
That's why this money is looking for people. There is hardly anything left to steal except debt.
Americans don't need to worry about Russians, Chinese, your generic "terrorists" at work, or invading space aliens. They are stupid enough to destroy themselves with no input from outside. It's confirmed now...
Now what purpose would that serve?
The Palestinians have been given multiple opportunities for a state and they have turned them down every time. They don't want a two state solution... they want to exterminate the Jews.
Is that what you want too Rememberweimar?
What the Zionist wants, the Zionist takes.
Read about it here:
http://www.balfourproject.org/balfour-and-palestine/
It's much to my shame that Sweden has recognized the state of Palestine before Norway did. But then, since a right-wing coalition under the leadership of an overweight closet racist named Erna Solberg is presently in charge of our country, it is to be expected.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/yioYBZ
He's not a liberal, he is a progressive. And therefore a communist.
No. Communists don't have to pay anything back.
When you steal from Freddy and GIVE to Johnny, that is communism.
When you steal from Freddy and LEND to Johnny, WITH INTEREST ATTACHED, that is NOT communism.
WHAT WE HAVE IS WORSE THAN COMMUNISM.
GET THIS THROUGH YOUR THICK FUCKING HEAD!!!
By repeatedly calling this "communism", you are DELIBERATELY CONCEALING THE GREATER CRIME.
Or is that your plan???
Dear Mr Red Arrows
Since when has "give" and "lent" meant the same thing? (Or are you guys all Indian Givers?)
What part of "give", "lend" and "interest" do you not understand?
Yes, I do understand that in the real word, a lot of what is "lent" will actually end up being "given", but as long as the official documentation says "lent" then the receiver is forever at the mercy of TPTB.
You are splitting hairs my agitated friend. In both cases you GIVE UP YOUR FREEDOM. In both you are A SLAVE. "Communists don't have to pay anything back". Thanks for the belly laugh, pal! Oh, they pay alright. And the price that they pay is their FREEDOM. Without FREEDOM, you have nothing, nada, zilch. And we never said that the system we have now is communism. But any fool can see that over the last century communists, or leftists, or marxists, or whatever you want to call this fucking filth (includes RINOs and neo-cons), have infiltrated every strata of this country from government to education to Hollywood. What we did say is that this guy is not a liberal. A century or so ago US communists started calling themselves "progressives" because they are liars. Look it up. "Or is that your plan". Yeah, that's our plan, Einstein.
For the credit of communism, the slaves got free health care, free university education, everyone had a place to stay and a job.
...and mass starvation as a political tool, killing fields, arbitrary executions, forced internment in gulags, torture for dissidents and a perpetually declining standard of living.
Where do I sign up?
Have you ever lived in a communist country? It sucks and its not free.
Thankyou for your reply, TeamDepends. I still maintain that the words "socialism" and "communism" conceal a greater crime when referred to the current system of selling the loot and charging interest.
"From each according to what he can, to be lent to each and charged interest and then repossessed when they can't make the repayments"?
For the record, there are a lot of people who think they are capitalists but they too are slaves. This is one of the reasons I have given up on all of the "isms" - socialism, capitalism, communism etc except fascism. A soldier once explained to me that the only thing that exists is feudalism. (This also ties in with Radical Marijuana's summation that all that exists is lies and murder systems.)
You think you are a capitalist being beaten down by communists. If only that were true. You go and buy stuff on the "free market" (yes, we both laugh at that phrase). The price is too high, not just due to the communist-induced lack of supply but also due to the free-money-debt-induced bidding up of prices.
In a nutshell:
In a communist system, you are a labour slave. In our system, you are a debt slave. I believe that the difference is worth high-lighting.
Cool! Agree about the "isms". Feudalism seems to our ears the most accurate description of what they're planning. Always planning! And to take it further, there's not a dimes worth of difference between communism and fascism. For have not Big Business and government already merged? Is there any separation? Tyranny by any other name.... Cheers!
Same shit. They all need to hang for their treasonous ways. The communists in the USSR were living in luxury while the masses suffered. Where did they get the money and resounrces to do that? The communists steal $100 from Freddy and keep $99 while giving $1 to Johnny to make him think that they care about him. That is what is happening here.
"You're just another arrogant white man — telling us what we can do — it's all about your ego — another fucking arrogant white man."
Mel Watt
Dats rayciss.
What are the DVs for? Can't stand an actual quote by this racsist motherfucker? Look it up:
http://en.wikipedia.org/wiki/Mel_Watt
As many as 227 million Americans may be compelled to disclose intimate details of their families and financial lives
The NSA has lot more information about you already including compromising photos and videos. But it is never enough in a fascist, police state:
FBI director demands unfettered access to all encrypted phone data
By Thomas Gaist18 October 2014
In a speech Thursday at the Brookings Institution in Washington DC, titled “Going Dark: Are Technology, Privacy, and Public Safety on a Collision Course?” Federal Bureau of Investigation Director James Comey demanded that the major telecommunications corporations develop new “backdoor” access points in their encryption systems to facilitate the US government’s mass surveillance programs.
Comey’s speech exposed the real perspective of the US ruling elite—usually concealed behind the smokescreen of lies—with respect to the unconstitutional surveillance programs run by the National Security Agency, the FBI and other government agencies.
Comey made clear the government will not tolerate even minor and ineffective obstacles to the government’s wiretapping and data mining efforts, such as the limited forms of cell phone encryption promoted by the tech companies as part of a marketing strategy.
Focusing in particular on the deployment of cell phone encryption software by Apple and Google, Comey complained that even with its existing “supercomputer” technology, the government is hampered in its surveillance efforts by increasing use of widely available data encryption methods.
“The law hasn’t kept pace with technology… Encryption threatens to lead all of us to a very dark place,” Comey warned.
http://www.wsws.org/en/articles/2014/10/18/come-o18.html
I think that thread is here: http://www.zerohedge.com/news/2014-10-17/fbi-america-let-us-spy-you
Only a criminal government need spy on the people.
An American, not US subject.
"I sure hope they haven't got wind of my guillotine yet. It's a secret."
I keep Rope around to Tie up My Boat.. that's my story and I'm sticking to it..
Facists
Fascists, communists, whateverists... doesnt' matter to us really. They all have to go. The only important aspect of there being different -ists is that we need to look for and exploit their differences in order to turn their attention away from us and toward each other.
Think of two cats tied at the tail hung from a clothesline... get them to tear each other apart.
Excellent example of why we need a NUMA...
https://www.smashwords.com/books/view/277193
Dude won't do me a bit of good..I need a 0% down and undeclared income to be able to purchase a home with available student loans.
Ed Zackery!
We need 0 down, 100 year mortgages before we can turn the corner to 100% "ownership".
What's wrong with these FedHeads? If only they wouldn't force me to make any repayments, I'd "borrow" as much money as they would want to "lend" me!
Okay, okay, I probably would not borrow more than a trillion in a hurry - until, of course, hyper-inflation sets in. But hell, I wouldn't mind creating a loss-making entity in around the millions / hundreds of millions mark. (Can't give you the exact number because I haven't added it up). Who knows? We might get lucky and create something useful for society.
1. Bring back manufacturing to my country. Granted, given that everything is cheaper from Asia, it would only be a loss-making cottage industry, but with free money people could do it for fun and they wouldn't have to work so hard. As long as I can pay workers more than the dole, there will be willing workers. That "keeping up with the Joneses" mentality can work for good too, you know.
2. Try and sort out our energy problems properly. It sounds really boring when you talk about "energy efficiency" and people making do with 2kW transportation. None of the good brains are interested in that crap. We should be figuring out how to make 1 MW power plants available to anyone who's interested. That kind of goal creates the excitement needed to engage the necessary brainwork to attack such a problem. Impossible? Everything was impossible until someone did it. Currently, half your eggheads are in minimum wage jobs or sleeping on park benches because they don't believe in Ponzi debt. How pathetic is that!
3. Build a decent fucking computer ('fucking' as in swear word used to emphasize anger and frustration, not as in verb) and software. I spent 30 years waiting for the invention of the 64-bit processor and the terabyte hard drive and now they're here but they're practically unusable!!!! How stupid is that???
I was planning on burning up all my own money on my grandiose ideas but I just ain't making it fast enough and I'm not the kind of guy that likes to explain to people why their investment in me isn't returning as much as my delusional fantasies suggested. These idiots want to lend more money? I'll borrow as much as I like if I don't have to pay it back. They're gonna lend money to idiots and when the idiots can't pay anything back, they'll either boot them out of the house and try and sell it again or they'll let the idiots live in the house so they don't have to devalue any properties. Stop the fantasy. They're not getting any money back so why do they pretend to "lend" it out? Just give it to me. The difference between me and the idiot who buys the over-priced house is that I can guarantee a more spectacular burn.
Speaking of Einstein... When he was asked what he thought was the greatest invention of the 20th century, he replied: "Compound Interest!"
Most people didn't get it and still don't. So allow me to explain his brilliant joke, that is based in truth:
1. It violates E=mc2, if maintained in perpetuity, because you can't "Create something out of nothing" (What, "Money making money?"), unless you're... "Doing what God's Work". In which case you have the power over entire nations -- as Goldman Sachs (GS) does.
2. Infinite Compounding does not work in a finite physical system (The World).
3. Clearly Compound Interest is a Legalized Ponzi, an Organized Scam, that is great as a Wealth Transfer Mechanism. It is Usury, and violates the Laws of Usury in Christianity, Judaism (Laws of Moses), and Islam. Interestingly enough, it does not violate the laws of the Babylonian/Kabal Talmud -- where ancient Rabbis simply decided that non-Jews were equivalent to Animals. Many of its practitioners today, who occupy positions of great wealth or power and influence, still use the Talmud passages to given them the "Green Light" -- and Presto! - they are clean and blameless. These are the guys who give the rest of their Tribe a bad name – and deservedly so.
Back in Einstein's time there was a gold backed currency. Now, the PTB will be happy if we take the bait and grab all the compound interest we can get. We will help the system to function and we will help by paying tax on the interest. They just print the paper money to "pay" us interest and over time, we will have more monopoly money in our hands. Unfortunately it might not buy us that much anymore.
We need to change the foreclosure laws so that they cannot try to foreclose or otherwise until the end of the term. If you get to 100 years and it still isn't paid for then they get the property back.
Screw 'em.
How about 20 years? All the risk -- ALL of it -- must be on the creditor. 100 years is way, WAY too long.
Hmmm. Maybe 15 years, or even 10. Not a religious scholar but doesn't the Bible mandate something like 7 years?
First thing is to stop callying them Regulators. They no longer are regulating.
The government and the industry have merged
This is a great idea and it's worked before!..right up until it doesn't. God help us.
"It's like déjà vu all over again"
--Yogi
Regulation is designed to give a politically favored market participant a leg up on a politically disfavored market participant. Regulations hinder market interactions while standards facilitate them.
A standard is the same for everyone. If a gallon was a regulation, a gallon of oil would be different than a gallon of milk, and/or the regulated amount would depend on who is buying and who is selling.
True. But regulation used to stop banks from lending money to idiots. You think it doesn't matter because you are not a lender and you are not an idiot. And then you notice that prices are too high. "Oh", you say, "That is because I am not a good enough capitalist. I had better work harder and smarter and innovate and ..." No. Your earnt dollars can never compete against debt dollars.
To say that regulations are bad because the crooks make the regulations is no different from saying cars are bad because drunks drive cars or guns are bad because crooks have guns. Go ahead. Give up your regulations if you must. The crooks are not going to give up their regulations and now they control the police force because you didn't want one.
They still regulate and punish those who are not part of the cabal. Try running a small business and the regulators will be up your ass. If you're a multinational corporation, the regulators will be licking your ass.
This ARSEWHOLE has to go!
This whole federal government has to go.
Article V State run Constitutional Convention ASAP. Amend them out of existence.
The constitution we have now is fine. I just needs to be enforced.
The original intent of the Constitution has been abused by the oligarchs. A Convention of the States would allow amendments that reset it to its original intent Oh, and perhaps we could add something about formally vetting the citizenship of the President and add appropriate penalties for not meeting the requirements.
It needs to be amended to add a constitutional police of government, a NUMA. Then these criminals will go to jail where they belong.
https://www.smashwords.com/books/view/277193
When the people know everything about their government, there is liberty, when the government knows everything about the people, there is tyranny.
How do you enforce it when the prosecutors and judges are corrupt?
What could ever go wrong with this idea?
What could ever go wrong with this idea?
They are systematically booming and busting the equity middle class Americans have in their homes, using extreme risk loans and taxpayer bailout to get the job done as they transfer middle class holdings to incoming immigrants via America's homes, jobs, small business opportunities, welfare, taxes, educational institutions and tuition subsidies for minorities paid for by middle class students.
The independence and primary value of the American middle class had been in their homes. But with the rulers push for a socialized big government economic model that value has rapidly been seized by the banking establishment.
It will be Watt’s job now to increase that holding and transfer the wealth away from Americans who would have favored a free enterprise economy based on property rights.
SOCIALISM!
The true purpose of the oligarchs is to rule the world under an international socialist new world order; to achieve this they consider it necessary to destroy all religions, overthrow all government, and abolish private property.
The only hindrance in their way is America's white middle class. Therefore, it must be destroyed.
AlaricBalth ( 5/2/2013):
A full audit was tried a few years ago by Ron Paul. He thought he had the votes. But then Congressman (D-NC) Melvin Watt came along and gutted the bill. Yes, the same Mel Watt who was named by Obama today to head
the Federal Housing Finance Agency. The same Mel Watt that has BofA as his benefactor. The same Mel Watt who has allegedly done some shady RE deals in Charlotte with some big hitters. The same Mel Watt who deserves to be scrutinized as deeply as he gutted the Audit the Fed bill.
http://www.zerohedge.com/news/2013-05-01/whose-pocket-new-head-fannie-an...
Guillotine the Fed!
An 'audit' will only reveal the theft and lies. A guillotining will stop the theft and lies.
An American, not US subject.
"Why end what should be guillotined?"
In other words, put the ISIS beheaders to good use! But why do I have the nagging suspicion that ISIS would behead you and me before they behead the bankers and oil tycoons?
I like your comment and understand your point, however, there is no ISIS (they are called CIA in reality), and there were no beheading.
https://www.youtube.com/watch?v=7KGrf2yyMno
An American, not US subject.
Just, but too fast, too gentle.
In situations like these, we can ask ourselves: "What would Ragnar Lothbrok would do?"
A quick execution is something maybe to punish the small fry... but yeah, that's too good for the criminals at the top, who should be made a public example. High treason needs to have some real teeth. (Although the definition of "treason" needs to be amended so as to delineate national interests, and not to privilege or protect the GD "king", or government, in any way. After all, most treason -- betrayal of the national interest -- does come from government, n'est-ce pas?)
Many thanx for sending me to Google on Ragnar Lothbrok.
Chuck out those words, "socialism" and "communism". Those words suggest that stuff is being given away. As I explained above, it is not. With socialism and communism, you don't have to pay it back, and there is certainly no INTEREST involved.
It's really fucking simple. When you lend money to idiots (or desperate people), they bid prices too high. Everyone either goes into debt or they go without. Eventually everyone is either in debt or dead. In order to keep the system going, a few favoured people will have their debts ignored. As I explained a while ago:
You have an aristocracy and it works like this:
If the nobility like you then they'll let you "borrow" money.
If they don't like you then they will make you pay it back.
What else do you need to know?
This is not rocket science. The government has no money. When it gives people money, guess what? It takes it from someone else.
Perhaps my personal story would help you understand: the government is taking the fruits of my labor, big time. And all around me the non producers are getting that money. If that isn’t socialism, perhaps being a wordsmith, you can tell me what it is.
Giving or Lending? The receiver of your stuff is not given your stuff. It is lent to him and he is obliged to pay for it plus interest. TPTB are working BOTH sides. You pay for your stuff with your labour. TPTB steal your stuff and LEND it to an idiot. The idiot has to pay for your stuff Plus interest. When the idiot cannot repay, your stuff is taken from him and LENT to another idiot WITH more interest attached.
An idiot with good media backing can get debt forgiven. When banks refuse to foreclose on delinquent mortgages in order to maintain scarcity and high property values, idiots also get a free ride. But both free rides is just spilt excess, not the modus operandi.
When an idiot gets a free phone then you are right. Something is taken from you and given to someone else so it is communism. But this article was talking about relaxing lending standards for mortgages. The idiot receiver is legally expected to pay it back WITH INTEREST.
If someone takes your home and gives it to someone else, that is COMMUNISM.
When someone takes your home and SELLS it to someone else, it is SOMETHING ELSE.
And when someone takes your home, sells it to someone who has no money, lends them imaginary money created out of thin air and expects repayments plus interest on top of that, it is something else again.
There is nothing wrong with fearing communism. It will not surprise me if it hits our countries hard. But lending money to idiots is WORSE than communism. Watch Dr Zhivago.
http://www.imdb.com/title/tt0059113/
The guy had just come home and found his house full of strangers. I could have the wording wrong as this is from memory:
"The two of you live in this house with 14 rooms, but there are 14 families who have no house and not even a room of there own."
Really easy to imagine this happening in a country full of homeless people and empty, foreclosed homes. That is basic communism. The instant the house-stealer SELLs rooms to the squatters and charges INTEREST, it is no longer communism. It is something else.
It is a long time since I spoke to someone who came from a communist country. Talk to one some time.
I know someone who traded cigarettes with the East German border guards. They had to bury their food to keep it from being taken from them....sound like fun to you?
It'll be worse when the border guards charge them interest for the food they did not provide.
It will not surprise me if the current system devolves to the point where people take out 20 year loans to pay for a week's worth of groceries and every week they roll over the debt. Impossible? Stupid? It should be both impossible and stupid but the world hasn't made sense to me for over a decade now. Why would simple logic hold it back now we have derivatives?
Already happening. At my local grocery store you should see how many use their credit card to pay, and don't even look at clothing retail. I had to tell the checkout girl on my last couple of trips, that I was using debit, which was not her assumption (both times). Granted, some or even most of these folks might be paying it off every month. But given the size of our revolving credit problem, I think it's a pretty safe bet that some aren't.
And we have to compete with that. The earnt money can not keep up with the debt money. Debt money can always bid prices too high so earnt money has to do without.
JR, re you post of 11:16, to give it some historical context...
The ancestors of many of the Central Planner elite in the US had their ancestors as Bolshevik elite. When they escaped Stalin's purges, they came to the West/US, where they continued in their "family tradition" of climbing up the food chain/pyramid, and imposing their worldviews on others.
Wikipedia seems to need some more work:
A smaller group of Russians, often referred to by Russians as the "second wave" of Russian emigration, left during World War II. They were refugees, Soviet POWs, eastern workers, or surviving veterans of the Russian Liberation Army and other anti-communist armed units who had served under the German command and evaded forced repatriation. In the immediate postwar period, the largest Russian communities in the emigration settled in Germany, Canada, the U.S., United Kingdom and Australia.
Janet said to acquire assets. This is one logical step in the plan.
/sarc
An American, not US subject.
Mr. Watt: "Speaking of "givin' her all she's got,' what are you doing later?"
i say go for it
Double dog dare ya!
Now that 3% down payment have returned it's only a matter of time before no income, no assets, no job, bad credit loans come back with even lower interest rates than the first time around.
This time around, people should be hung for this.
Honey, remember when I got VD from having unprotected sex with prostitutes? Well, I'm going to do it again and hope it turns out better this time.
In Australia they went one better. They were giving stamp duty exemptions and cash grants for low priced real estate. This worked really well. Real estate at the bottom end started to boom and this then caused an upward ripple effect as everybody upgraded. As a result Australia has had a housing price boom based on an incredible debt surge while the rest of the world is still languishing. It is only a matter of time before the party comes to an end.
Give someone an extra dollar, they got a bigger deposit, now they can borrow another ten dollars, errr, if they can keep up the repayments that is but who cares about repayments? Suddenly prices go up by ten dollars. Funny how that works.
Australia is going to be fucking lucky not to end up a Chinese vassal state.
sign me up. FSA volunteer!
I think what scares the hell out of some of the government agencies and a portion of the elite is the fact that there might be someone out there that might be a little more evil than they are.
The stupid thing is that they believe that the truly evil person can be caught.
Do we all remember the Uni bomber who successfully evaded capture and would have continued to do had his family not had their memory jogged by a reward?
Why noy 125% loans. Buy a $400,000 house; get a $500,000 loan. The extra $1000,000 is good for the economy and money velocity. Ditech 2.0
Ditech, thanks for the memory... "Arghhhhh...Lost another loan to Ditech"
I do believe it would be easier and cheaper if we found a way for our 'Elected Representitives' of each western controlled countries to abolish the private banking institutes that create 'Legal Tender' from thin air, and then charge the proles 'Non Value Added Interest'.
Then try them in acourt of law, like the fucking cuntish dogs they are. Give them a fair trial, and hang the bastards twice, just to be sure. Its no good threatening their families not to copy this filthy, non productive trait, so hang them, down to the last fucking hanger on, just to be sure.
Then we can start afresh. These bastards are worse than any known parasite humanity has ever seen, they live not just on you, but off of you. Year after year of compounding interest, paying 300 grand back over 30 years for a house that cost 150? With money you provided by your own signature?
This has got to end my Zerohedgistic friends. Humanity can never move forward till we remove these cunts and institute sound money.
And one more thing, if you desire power, it should make you immediately hangable. no elected office should be given to those that want it, power corrupts, and absolute power etc etc.
Its should be like a lottery, where you are picked from a tin and made to serve 4 years say, and be barred after doing so.
Call that good old fashioned, 'Public Fucking Servants'. And just one more thing, Usury should be made, and legislated for, a capital offence, whereby you are skinned alive, infront of crowds for abusing the public.
Mother fucking cunts.
;-)
'3% down' will still be way out of range for most merikans now since many live 'paycheck-to-paycheck' and have little or no savings.
There'll be no cushion if an illness hits them, or job loss, divorce, etc. There'll be another avalnche of foreclosures [or millions more living rent free].
PS: "rent free" means on the backs of taxpayers
Econ 101: As prices increase, more producers come on line to benefit from the higher profits, thus increasing supply ... producers lower their prices to get the sales, blah blah blah self-correcting prices, optimal demand satisfied.
Funny how no matter how high the price of real estate goes, supply never increases to satisfy the demand.
How much real estate is being produced?
It was a rhetorical comment.
We need bumper stickers and signs that say:
"DEBT" is NOT "AFFORDABLE"
Shame I am currently too slack to make it happen. Feel free to do it for me.
:)
P.S. If you have paper voting, write it on the ballot paper too. Even if nothing else happens, we still gotta let the fuckers know that we know.
Best way to do that...develop (and protect) alternative community systems. And when the regulators come around, tell them NOTHING. Treat them like the outsiders they are.
Best way to defeat them is not to use any of their damn 'services', and when they are weakened by disrespect and lack of use, kick them out altogether. The less information they have, the better off we all are. (I think this is why they are so desperate for information, and why they are trying to create a new economy based on spying.)
Meanwhile, we all need to start getting to know our neighbours again. Our communities, that the government is so assiduously destroying, are our best chance against them. Governments have alliances, banksters and other criminals have alliances. Normal citizens need to start forging alliances again.
The spying will destroy ALL innovation and business. You will only succeed if TPTB want you to succeed. And TPTB can't be bothered backing the best horse. They'll happily wheel an old nag over the finish line just so they can "win".
How much is sitting on bank balance sheets never to be marked to market...
And they're the ones going for the judgments now. Fucking pull the whole damn thing, FFS.
Deficiency judgements mean nobody should ever get a loan from these guys, for any reason. Then again, unclear title works the same way, and still morons want to sign up for mortgages.
Flip This House. Flip That House. Low Doc Loans. No Doc Loans. Ninja Loans.
As Hellary Clinton once said, 'What Difference Does It Make!'
Most of us know how this will end.
Sigh.
Just another asshat, who like his boss, wishes and desires to destroy Amerika with whatever it takes to "transform" the country. None of these dickheads will be happy until and unless the Gubermint can control every aspect of your life. "Hope & Change"; how do you like us now?
www.traderzoo.mobi
And Tishman Speyer's credit rating is?
And the credit ratings of insolvent TBTF's that also engaged in securities fraud is?
OK first, for me and maybe others, who is Mel Watt? Well, currently he's head of something called the Federal Housing Finance Agency, and I'm not even sure what that is. Oh, makes him the boss of Fannie Mae and Freddie Mac. Swell. I thought we were closing those things down? Watt was previously a Congressman from NC. He is also an older gentleman of the colored persuasion, with what looks like a reasonable CV, if you like progressives.
As to the rest, well, whatever dudes.
Just to keep up 45th President will have to be a diseased transgender lesbian pantheist multicolored dung beatle fluent in 44 languages, with extraordinary tolerance to ionizing radiation & insecticides. Monsanto can help themselves to this one.
Franklin Raines, redux.
How can they say its risky when the money they use to make the loans was printed out of nothing?
The banks have no over-sight, they could simply "pretend" that people are paying them and write down int he ledger that they have more money on deposit than they do.
Only 2~3% of the money in banks actually exists in note or coins, so 90+% of the money supply has
-No Serial Number
-No Mint Date
-No tracking information
-No anti-counterfeiting measure.
Its a complete farce.
The banks are the only ones that profit from loans.
They get to give out nothing, and wait to get something in return.
Its a complete scam, there is no "risk" in todays banking system, the borrowers absorb all the risk.
Worst thing that can happen for a bank if a loan "fails" is the bank ends up with a free house to sell.
Every-time anyone asks for the banks books, they will tell you that all their books are "proprietary".
Because none of the real books follow GAAP, they just have a set of "fake" GAAP books to throw the public every now and then, but those books are completely detached from reality.
We spent over 29 Trillion Dollars bailing out the banks.
And somehow everyone that bailed these banks out is still in debt.... if that isnt a testiment to how fucked up this system is . . . . I dont know what is. . . . you people are fucking retarded for paying your debts.
Classic case of a black liberal working exclusively for blacks.
The proof of that is that what this racist asshole wants to do will hurt the black community worst. That's always the result when they are "helped" so something not earned or deserved.
Watt was a do nothing city councilman in Charlotte who never ran in anything but an 85% black district. He was such an effective ass kisser of all the Charlotte banks that they "kicked him upstairs" to federally mandated and gerrymandered black majority district so he could go to Washington where he similarly did nothing but be the banks go to boy and line his pockets with campaign contributions that he never needed because his reelection was completely guaranteed. So now he's been "kicked upstairs" again to where he can directly suck banker cock and not be burdened with being bothered with meaningless elections. I'm sure the bank accounts in the Caymans are more than full by now. First sign of trouble he will tender his resignation and hop a chartered flight to parts unknown. Once a scumbag always a scumbag.
fuck lending at interest.
everyone has a right to shelter in the fake economy.
Banksters economic plan to save world.
Great Recession- Morgage given to anyone with pulse.
Greater Recession-Morgage given to anyone with graveyard lot number.
Greatest Recession- Morgage given to anyone who have not been conceived yet.
Greater Depression-After that banksters will start fucking aliens with their morgages.
Alien economic plan to save banksters.
Greatest Depression - After that bankster will be served.
Recovery. - giving or taking a loan punishable by death.
Moral: Aliens killed banksters to save them.
I have a thought experiment for all of you.
I have owned an apartment complex in the Midwest for many years and we are currently experiencing the largest number of vacancies we have ever had. Many houses in the area are empty or under leased. In 2005 and 2006 prior to the housing collapse many people were looking at second homes, for investments or as a vacation getaway.
Today many of those people have shed the extra homes and some have doubled up with family or friends reducing the need for housing. We are pushing on a string and calling it demand when someone who can barely pay the rent is encouraged by the government to buy a house they can neither afford or maintain. We have a shortage of "qualified" buyers and renters. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/12/super-low-interest-rates-disservive-to.html