A Recent History of the Housing Market
And here we are today, with the US economy facing a recession and politicians providing foreclosure relief which rewards the banks and homebuilding companies with tax breaks.
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Who Will Receive Federal Government Assistance and a Bailout Package?
But one thing is certain: everyone will definitely not get a bailout from the central government. The politicians will delay for as long as possible to prevent this; that is, they will spend so long talking about who to bail out and how much to give them and what kind of bailout to provide, that they will never get around to actually doing anything.
Bankrupt Federal Housing Administration to Bail Out Bankrupt Mortgages
So, it seems that the FHA will be encouraged to take on more bad loans and allow struggling homeowners to refinance, but the agency itself is facing its own financial crisis. Thus, homeowners and the general public will have to subsidize the FHA so that the FHA will be able to subsidize mortgage companies and help them remove bad loans from their balance sheets. |
Fraud Financed by American People - The Collapse of Bear Stearns
When the buyout of Bear Stearns by JPMorgan Chase was announced, it was no stretch to assume that some amount of fraud had been perpetrated on the investment community, employees and clients of Bear, and the American people.
How Bad Is It Out There In the Housing Market?
With all of the discussion of the foreclosure crisis in the media and on business networks, there may be some confusion as to how bad is the situation in the housing market. The media has an admitted big-government bias, so it is often quite difficult to separate truth from propaganda, especially during times of economic crisis.
Long Term Effect of Foreclosures -- More Foreclosures
It is becoming clearer by the day that the wave of foreclosures sweeping through parts of the country will forever alter those manufactured neighborhoods. Artificial money was pumped into newly-created suburbs, turning Green Acres into Asphaltistan, while large corporations moved in to suck the wealth out of communities before the collapse of the housing bubble.
Bailing out Banks and Builders Will Not Help Stop Foreclosures
The Senate's newest sham proposal to "help" homeowners facing foreclosure has come under heavy criticism from nearly everyone who is not a politician, and even some who are. The "Foreclosure Prevention Act" does little to provide assistance in helping people keep their homes; rather, it benefits banks and homebuilders who purchase foreclosures.
Bankrupt -- The Economy, the Politicians, and the Banks
With the passage of the poorly-named "Foreclosure Prevention Act," the somewhat-elected representatives of a small percentage of the people of the country have passed legislation that will only hurt more homeowners. Although ostensibly designed to provide more resources to assist homeowners in foreclosure, the bill actually rewards those parties (banks and homebuilders) who have profited most from the real estate bubble.
Housing Crisis a Sign of Things to Come
From secretly bankrupt banks to a complete takeover of the system by the Federal Reserve, banks have become the newest welfare recipients, cutting in front of Americans to feed at the government trough of taxpayer money.
Nationalizing the Banking System? Giving the Fed More Power is Much Worse
The question of the effects of the"Federal Reservation" of the markets is not being asked. Do we really want the government to give up even more of its oversight and regulatory responsibilities to a private system of banks owned by the very banks that assisted, along with other too-powerful government agencies, in creating the conditions that have led to so many homeowners facing foreclosure?
Suspension of Sheriff Sales for One Month to Help Homeowners In Foreclosure
Recently, the local government in Philadelphia, Pennsylvania has made the decision to suspend sheriff sales of foreclosed properties. No more foreclosure auctions will be conducted for homeowners who have adjustable rate, subprime mortgages, and the suspension will last all through the month of April. This remarkable measure may provide relief to thousands of homeowners, and is one of the very small victories for individuals in the foreclosure crisis.
Why Keep Subsidizing Insolvent Banks to Make the Foreclosure Crisis Worse?
The people in foreclosure are still suffering -- but now the government has hidden away their loans so that the banks don't have to report the bad debt and they do not look like they are in such trouble anymore. Of course, the banks are still in trouble, and homeowners are still suffering, but there is a perception that it is not quite as bad anymore as it was a few months ago.
Were Foreclosures a Part of the Plan for the Economy?
In the end, the banks have been able to take their profits from making bad loans, take homes from people unable to stop foreclosure, and steal even more money from Americans by giving the government the bad mortgage debts in return for Treasury securities.
Gifts from the Fed -- Banks: Inflated Money and Houses, Homeowners: Nothing
For example, see the Fed's $200 billion lending program where banks can trade in garbage subprime loans for US Treasury securities, in effect giving the nonperforming subprimes to the people to deal with while the banks keep up an appearance of solvency. However, the banks will not be returning any of the massive profits they made from these loans to the people -- just the losses now that the loans have gone bad.
Rescue Bear Stearns? How about Stopping the Mortgage Servicing Fraud First
Although not every employee of the company was involved in the alleged mortgage servicing fraud, it seems that karma has finally caught up to the bank. EMC, through willful fraud or gross incompetence equating to negligence with the same end result as fraud, stripped the equity and took the homes of their mostly-unwitting foreclosure victims.
The Subprime Mortgage Lending Swindle - Privatize Gain, Socialize Loss
But at least homeowners having trouble making their mortgage payments or keeping the heat on or feeding their families will be able to rest assured that their bank will not feel any financial pain from kicking them out of their homes.
Blame Homeowners for the Foreclosure Mess? Not Until You Blame Government
It is much easier to shift the blame away from the government and politically-connected interest groups and corporations onto the politically weak people. This results in blame for the problems being given to people while credit for economic success is given to the government's wise policies handed down by the benevolent philosopher-kings.
$200 Billion Federal Reserve Bailout -- For the Banks
This gives the banks the incentive to continue making poor loans and removes any real desire to work with homeowners to stop foreclosure from taking these homes.
Schizophrenic Messages from the Media about the Consumer Credit Crisis
I always find it amazing to read news stories and commentaries about personal finance put out by the mainstream media. Many of them seem to lack any focus in their messages to consumers, if they are not openly schizophrenic.
Will Bailing Out the Banks Help the Average Homeowner Stop Foreclosure?
The bailouts that have been and are being provided to the insolvent banks and hedge funds are doing exactly what they were meant to do: allow the banks and financial centers of power to keep up appearances while they cash out of the system, leaving the average American out in the cold but (hopefully) unaware of it all.
Lenders Cutting Off Access to Equity Lines of Credit
By keeping the lines open, they risk even greater losses as homeowners use the money to get ahead of the foreclosure and never intend to pay it back. By closing them, the banks are almost guaranteeing that some owners will quickly fall into foreclosure.
A Terminal Decline of the Empire of Debt?
Faced with a loss of confidence in the dollar and a loss of confidence of the general benevolence of the country throughout the world, there may be little reason to expect that this current recession does not signal the final days of an empire of debt.
Disturbing Foreclosure Statistics
There is no doubt that the buying binge of the past seven years is causing serious consequences, which not even the manipulations of the Federal Reserve are able to overcome.
Lenders Still Contributing to Foreclosure Epidemic
Many of the lenders and servicing companies have taken measures to ease their own suffering, but it seems most would rather delay things, than actually fix them. Maybe they are under the assumption that the homeowner will come up with their own solution if they give them enough time.
Recession? Foreclosure? Spending is the Problem
So-called experts can be seen recommending that people spend money and buy to prop up the economy, but an attitude of instant gratification and overspending by both consumers and the government have led us to this economic situation.
More Reasons for the Foreclosure Crisis
The foreclosure crisis is not an isolated event caused by the failures of the market and greedy buyers and lenders taking advantage of each other.
Despair and Depression the Ugly Twins of Greed in this Foreclosure Season
How did all this happen? Just a year ago, in 2007, the housing market, to all appearances and according to many of the so-called "experts," was set to keep booming.
Pointless Celebrity Trials More Important than the Foreclosure Crisis?
So maybe the best we can hope for from the government is just to keep on investing topics that are wholly irrelevant to most people. Leave the people and the market to work out its own instabilities and get over the current recession with as little interference as possible.
What Have Banks Learned from Taking Away Your Home Through Foreclosure?
A drop in the value of their 401(k) or other investments is certainly disturbing, but finding out that one has been a victim of the most incompetent lending practices of recent memory and that has led to an inability to stop foreclosure is another matter entirely.
Banks Believing their Own Lies have Led to the Foreclosure Crisis
Extracting as much profit as possible from the people through lies and manipulations is one thing; believing their own lies is entirely another. Of course, it always helps when the banks do not have to worry about things like accountability or being punished in the market.
Macroeconomic Concerns of Foreclosure
Although most of these issues are discussed frequently in the news, few conclusions are ever reached and no connections are made from one topic to another.
Reasons for the Foreclosure Crisis
Only by learning from the mistakes of others, and the traps designed to facilitate the loss of their homes, can any homeowner realistically expect to keep his or her property out of the foreclosure process.
The Current Economy, Foreclosure, and You
Only by learning from the mistakes of others, and the traps designed to facilitate the loss of their homes, can any homeowner realistically expect to keep his or her property out of the foreclosure process.
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