Thread: Look Through The Economic Data For What Is Really Going On

Learn To See Through The Economic Data For What Is Really Going On

Posted: September 23 2009

Fed the only creator of stability currently, sub prime crisis not over, expect a tidal wave of losses for years to come, Fed crassly believes new monetization isn't new money, but Fed is really creating inflation, a coming winter of discontent, cuts to T-bill purchases

As pick and pay and prime loans crash into foreclosure and their high to high medium priced homes descend in value, how can Wall Street and Washington celebrate a slight increase in low-priced housing? As you can see, from figures appearing later in the issue, whatever stability there might be is being supplied by the Federal Reserve. It is a make believe market with 85% of mortgages being funded by government agencies at taxpayer expense. There is no cause for celebration as government and the privately owned Fed shove systemic problems somewhere off into the future.

Some believe the subprime crisis is behind us. It isn’t, if you cast your eyes on Washington and observe the toxic loans they have been insuring for the past year through the FHA. They will build up to another subprime crisis in about a year to add again to existing problem loans. This time the failure rate should be about 70% and perhaps higher. We are about to see the result of the partnership of Citibank and others and ACORN and their program of home loans for illegal aliens. This program is four years old and has received billions in tax dollars to house people who are illegally in our country. The re-loans were made at below-market interest rates, with down-payment assistance and no mortgage insurance requirements. You as American citizens are not offered such deals; you just get to pay for them.
The past two and present administrations were all in on the program, a program the mainline media failed to inform you of. Washington knew what it was doing; they were placating the minority interests of two Marxist groups, ACORN and the National League of LaRaza. Washington for political reasons has been extorted and blackmailed at our expense. The 1977 Community Reinvestment Act has been turned upside down for corruption and profit. Even defrocked crook Henry Cisneros, an ACORN advisory council member, is involved as he was at Countrywide. He resigned from the Clinton administration from his position as HUD secretary after lying to FBI agents about payoffs to his former mistress. What a gaggle of malefactors.

The entire experiment has been reminiscent of something we’d expect to have seen in the 1930s in Russia or Germany. As a result of the Fed, banks, Wall Street and government the tidal wave of losses will stretch for years to come, as a reminder of what a criminal society we live in. The days of 20% down and a good credit rating are history. Now anyone who can make his or her mark on a contract can have a home. In fact, next we expect that homes will simply be given away to the poor and minorities, because society and we owe it to them, as we fail to pay our mortgages to usurious banks that create money out of thin air and lend 45 times their deposit base. You ask how could any sane person keep money in such banks? As a result homeowners have little home equity left, because bankers have caused a housing collapse and these same banks are broke. That means our society and our financial system is broke. Homeowners are not going to pay a mortgage on a property that is worth substantially less than the loan on the dwelling. We wrote six years ago that Fannie Mae and Freddie Mac were broke. Everyone in finance and in Washington knew that but no one was listening. We said at that time that the federal government would end up owning about 50% of the homes in the country and that is just what has happened. Next comes further socialization. Eventually Washington will rent the homes they have in inventory and eventually people will be told where they will live and where they will work. Then who they can marry and who can have children and who cannot and where they’ll work and at what job. This is the utopia the Illuminists have prepared for us.

Today some 16 million homeowners have negative equity, which for them is a nightmare. Most of those who speculated in real estate have been wiped out and commercial speculators are next. By the end of 2012, 70% of Americans with home loans will have negative equity and those who own homes outright will suffer losses in equity of 40% to 70% of the value of those homes. The largest source of Americans net worth will be wiped out. You might call it the pauperization of Americans. Couple this with no jobs or poor paying jobs, due to free trade and globalization, lower wages, higher inflation, and a deflationary depression, and you have the stuff revolutions are made of.

Almost all the subprime loans were a failure and now our government is again funding thousands of them. Those are the FHA loans, which make up 25% of loans, subprime all, with a 3.5% down payment, that already has an 8% failure rate. These are people who should not have loans. The LaRaza illegal aliens and minorities and others who are ill equipt to service these loans. Already 12-1/2% of mortgages are in foreclosure, or are late pays. Unemployment is 21%; and those foreclosures are going to increase. Foreclosures are at four million a year and climbing. Over 50% of those failures are from prime borrowers, which means more expensive homes, which means bigger losses. We will be lucky if this massacre ends in 2013.

When Sir Alan Greenspan is alarmed by what the Fed is doing in regard to the expansion of money and credit and monetization, you know we have a serious problem. Failing to stop will lead to hyperinflation and Sir Alan says, “If the Fed doesn’t stop we are not looking at 3% to 5% inflation, but double digit inflation.â€

We are about to see the result of the partnership of Citibank and others and ACORN and their program of home loans for illegal aliens. This program is four years old and has received billions in tax dollars to house people who are illegally in our country. The re-loans were made at below-market interest rates, with down-payment assistance and no mortgage insurance requirements. You as American citizens are not offered such deals; you just get to pay for them.

It's time for a whole lotta people to be standing in front of a Grand Jury

Originally Posted by AirborneSapper7

We are about to see the result of the partnership of Citibank and others and ACORN and their program of home loans for illegal aliens. This program is four years old and has received billions in tax dollars to house people who are illegally in our country. The re-loans were made at below-market interest rates, with down-payment assistance and no mortgage insurance requirements. You as American citizens are not offered such deals; you just get to pay for them.

It's time for a whole lotta people to be standing in front of a Grand Jury

True, but doubtful it would ever happen.

Great article, by the way!

I would like to believe they would be held accountable but I doubt it seriously.

this is an important documet ... I'm tell'n ya; a whole bunch of people need to go to jail