Redux - Where Were Their Heads Located?
Following up on last weeks Nattering re: absurd housing prices and declining income levels, TEN YEARS AFTER - a still prescient rant of epic proportion that explains "how and why" we got into this world of hurt...
Received from a Naybob of Realty... with a passionate plea for the "poor and helpless".
U.S. HUD Secretary Roy A. Bernardi, delivering the keynote address at the Federal Home Loan Banks Annual Directors Conference. Bernardi's comments: "This is the time for vision and prudence". Bernardi also warned against proposals in Congress that:
"put us on a slippery slope, rapidly moving in the direction of a federalization of the mortgage industry. Americans don’t want to pay for the risky financial behavior of others. And they don’t want to make the Federal government the lender of last resort, with the private sector dumping bad loans on FHA and the taxpayers themselves. We must not harm our economy through solutions that further erode the foundation of the nation’s housing market, hurt homeowners who are meeting their mortgage obligations, or prolong the correction.”
Our Naybob of Realty's Plea: This is the most real help for those in need that has come along to date. Please pass this along to all. You never know who's family you could save..
The Nattering One now gives the governments socialist housing propaganda scheme the arse paddling it so richly deserves...
This clap trap of propaganda is worse than being fellated by your local FHLB banker as it is filled with hollow words which resonate, "do as I say, not as I do"... and beg's the question: Where were their heads located?
The only humane thing to do would be to step on the borrowers and lenders heads to aid in drowning them quicker and perhaps line the perpe- traitor's up against a wall and execute them. Anyone reading the legislative text of bills passed and on the floor to date, knows that the above is exactly what the Fed, its legal owners, the banks, and their whores in Congress ARE doing.
We ARE being put at risk, we ARE paying for the behavior of others, and with Congressional blessing, the engineers of this mess ARE dumping all of their garbage loans on the GSE's as the lenders of last resort and ultimately the US taxpayers.
These engineers of greed and financial chaos "the best and brighest" and their lobbyist bought politicians ARE socialising the housing market have sold us down a river and ARE now orchestrating bailouts for deadbeats and white collar welfare for their douchebag banker friends, Wall Street and the moron buyers and lenders who greedily participated in the price runups during what will become known as The Great Real Estate Scam of 2000-2006. Where were their heads located?
Who are WE? Thus far, Fed actions to lower interest rates come at the cost of those of us who do what few in this country can, that is SAVE MONEY, STAY DEBT FREE and live ON A NON DEFICIT BUDGET.
To enable the gamblers, the Fed is directly harming US and people in retirement and on fixed incomes, pensions or social security. For the first time ever, TIPS bonds, a financial instrument designed to protect the investor from inflation, are yielding negative or less than ZERO interest rate.
The CPI by fraudulently "anchoring" and the FED by "managing inflation expectations" are actually screwing the investors who put their full faith and trust in a government that blatantly lies to the public at every turn, and about everything.
See how widows, orphans, seniors, the public and bond holders are getting screwed royally, on Bloomberg, here and here, and at the Treasury here.
Again, back into the breech and let us digress in this field of schemes... Greenspun lowered too low for too long, which made all this madness possible. At what time did the conscience of the engineers of this scheme stir or become engaged? If a gorilla dressed in a suit, with a pulse, could fog a mirror and get a loan, where were their heads located?
Where was the fiduciary responsibility? Where was "the vision and the prudence." that Mr. Bernardi now pleas for?Lets see now, load up Chim-Chim and his monkee see, monkee do friends with a load of free money, and what happens? $200K homes (which were really $60K homes) suddenly get bid up by a pack of imbeciles to $600K homes.Where were their heads located?
The engineers of this scheme (loan brokers, lenders, realtors, appraisors, escrow, title and Wall Street) then pocketed their abundant commissions, and in the end the irresponsible borrowers and lenders just walk away with a pardon?
Oh, I forgot, the engineers were the profiteers and therefore absolved of any responsibility towards the greater good. And to be sure, these engineers and their friends do not want the prices to fall to true equilibrium. Why?
Follow the money, over 30 years at 6.3%, a $160K loan brings in $356K, of which $196K is interest. A $600K loan at 4% brings in, drum roll please, $1 Million, of which $430K is interest. Better yet, at 8% it brings in $1.5 Million, of which $1 Million is interest. Even more if this is a interest only or negative amortization loan.
Not to mention the higher percentage on points and fees from origination through closing to portfolio MBS marketing to servicing. Do you get the picture now? Where were their heads located?
The engineers want to keep prices at lofty levels lest they would lose the higher interest income or land rent payments. So they can claim to ACT in benevolence by "giving" loan forbearances and "affordable" workouts, all to keep the idiotic sharecroppers on the land. They don't want prices to fall, because then the smarter sharecroppers who stayed out of the fray will move in and pay much, much less.
The banks won't discount their REO's much because the PMI has already paid them in full. Yet, they may be "generous" enough to consider writedowns, why? The bank can dictate the terms and the writedown percentage will be far less than the decline of the homes price in a truly FREE MARKET.
So anyone who sat this greed fest out cannot buy at the lower price, only idiots who bid it up can, sounds like a free market to me. Where were their heads located?
A goat roped sharecropper pays $600K, but gets it for $450K after the $150K writedown, and the appraised "value" stays at $600K. Losers are the MBS investor who got screwed by the "safe harbor" loan workout legislation which protects the lenders; the sharecropper who gets the "privilege" to stay as a debt slave to pay the bank and county tax assessor at an artificially higher market rate; the renters in the area who are willing to "crowd in" to support the artificial price levels and greedy landlords; and those who stayed out of the fray and could have bought the home at an real and supportable fair market value, perhaps $300K or less.
The winners: the politicians who spend the county tax assessors money lining their friends pockets and their sponsors, the banks. So much for those ballyhooed urban myths "the home ownership society" and "the free market". Where were their heads located?
Absolutely disgraceful and proof that democracy is truly dead and this country has been run into the ground by a pack of profiteering prostitutes. We have been reduced to a socialist police republic run by the house of finance and their whore politicians, who cannot help themselves from buggering Lady Liberty and the publics arse at every opportunity.
Unfortunately for the rest of us, this festering pack of elitist sodomites with cash hard ons for brains are in for a very rude awakening. They are in the process of discovering that artificial asset pricing support will not work in a market in which the supply and production is not vertically controlled from the source. i.e. the oil and diamond cartels.
As we have stated before, it is different this time, as wage based inflation did not play a part in the price run up. Creative financing, free money, non existent mitigation of risk and plain old greed did. Where were their heads located?
Therefore jobs and the pay must be comensurate with and support the rents and values. Until that day comes, the asset prices will and must continue to fall to their proper equilibrium price.
Any effort to contradict this natural market action through socialist bailouts is an abomination and shall fail miserably, with dire consequences for what little remains of this tired old republic. By the tone of Bernardi and our elected officials comments, the paper trails have been swept under the rug and options of legal recourse are blanketed by "emergency" legislation, and their friends have walked away with pockets that are plenty full.
This is why we, those of us who are left to pick up the pieces, are counseled to "adapt and overcome". We are told this is a global financial crisis of the gravest nature. Sounds to me like, I got mine, now shut up and don't disturb my ill gotten financial gains. Where were their heads located?
Instead of taking ownership and paying the consequences, the moneyshuffling engineers, their co-conspirators and sympathizers want to be pitied and treated like addicts. We pity neither addicts, fools, nor greedy bastards, because they all KNOW what they are doing is inherently WRONG.
You abuse yourself, the system and others because you are weak and feeble minded. You made your bed, now sleep in it, let nature take its course and further, PULL YOUR COLLECTIVE HEADS OUT OF YOUR GREEDY FAT ARSES AND DON''T TREAD ON ME!
Recommended reading: On 03/25/05 we went on record regarding the urban myth "The Home Ownership Society" in "The Sharecropper Society".
On 11/07/08 we went on record regarding the limited number of people whom should receive assistance, and why in Let Them Eat Cake II - The FHA Bailout.
On 01/25/08 we went on record regarding the banking bailout hidden in higher GSE loan limits within the Economic Stimulus Bill here.
March 2015, TEN YEARS AFTER, I'd Love To Change The World...
Received from a Naybob of Realty... with a passionate plea for the "poor and helpless".
U.S. HUD Secretary Roy A. Bernardi, delivering the keynote address at the Federal Home Loan Banks Annual Directors Conference. Bernardi's comments: "This is the time for vision and prudence". Bernardi also warned against proposals in Congress that:
"put us on a slippery slope, rapidly moving in the direction of a federalization of the mortgage industry. Americans don’t want to pay for the risky financial behavior of others. And they don’t want to make the Federal government the lender of last resort, with the private sector dumping bad loans on FHA and the taxpayers themselves. We must not harm our economy through solutions that further erode the foundation of the nation’s housing market, hurt homeowners who are meeting their mortgage obligations, or prolong the correction.”
Our Naybob of Realty's Plea: This is the most real help for those in need that has come along to date. Please pass this along to all. You never know who's family you could save..
The Nattering One now gives the governments socialist housing propaganda scheme the arse paddling it so richly deserves...
This clap trap of propaganda is worse than being fellated by your local FHLB banker as it is filled with hollow words which resonate, "do as I say, not as I do"... and beg's the question: Where were their heads located?
The only humane thing to do would be to step on the borrowers and lenders heads to aid in drowning them quicker and perhaps line the perpe- traitor's up against a wall and execute them. Anyone reading the legislative text of bills passed and on the floor to date, knows that the above is exactly what the Fed, its legal owners, the banks, and their whores in Congress ARE doing.
We ARE being put at risk, we ARE paying for the behavior of others, and with Congressional blessing, the engineers of this mess ARE dumping all of their garbage loans on the GSE's as the lenders of last resort and ultimately the US taxpayers.
These engineers of greed and financial chaos "the best and brighest" and their lobbyist bought politicians ARE socialising the housing market have sold us down a river and ARE now orchestrating bailouts for deadbeats and white collar welfare for their douchebag banker friends, Wall Street and the moron buyers and lenders who greedily participated in the price runups during what will become known as The Great Real Estate Scam of 2000-2006. Where were their heads located?
Who are WE? Thus far, Fed actions to lower interest rates come at the cost of those of us who do what few in this country can, that is SAVE MONEY, STAY DEBT FREE and live ON A NON DEFICIT BUDGET.
To enable the gamblers, the Fed is directly harming US and people in retirement and on fixed incomes, pensions or social security. For the first time ever, TIPS bonds, a financial instrument designed to protect the investor from inflation, are yielding negative or less than ZERO interest rate.
The CPI by fraudulently "anchoring" and the FED by "managing inflation expectations" are actually screwing the investors who put their full faith and trust in a government that blatantly lies to the public at every turn, and about everything.
See how widows, orphans, seniors, the public and bond holders are getting screwed royally, on Bloomberg, here and here, and at the Treasury here.
Again, back into the breech and let us digress in this field of schemes... Greenspun lowered too low for too long, which made all this madness possible. At what time did the conscience of the engineers of this scheme stir or become engaged? If a gorilla dressed in a suit, with a pulse, could fog a mirror and get a loan, where were their heads located?
Where was the fiduciary responsibility? Where was "the vision and the prudence." that Mr. Bernardi now pleas for?Lets see now, load up Chim-Chim and his monkee see, monkee do friends with a load of free money, and what happens? $200K homes (which were really $60K homes) suddenly get bid up by a pack of imbeciles to $600K homes.Where were their heads located?
The engineers of this scheme (loan brokers, lenders, realtors, appraisors, escrow, title and Wall Street) then pocketed their abundant commissions, and in the end the irresponsible borrowers and lenders just walk away with a pardon?
Oh, I forgot, the engineers were the profiteers and therefore absolved of any responsibility towards the greater good. And to be sure, these engineers and their friends do not want the prices to fall to true equilibrium. Why?
Follow the money, over 30 years at 6.3%, a $160K loan brings in $356K, of which $196K is interest. A $600K loan at 4% brings in, drum roll please, $1 Million, of which $430K is interest. Better yet, at 8% it brings in $1.5 Million, of which $1 Million is interest. Even more if this is a interest only or negative amortization loan.
Not to mention the higher percentage on points and fees from origination through closing to portfolio MBS marketing to servicing. Do you get the picture now? Where were their heads located?
The engineers want to keep prices at lofty levels lest they would lose the higher interest income or land rent payments. So they can claim to ACT in benevolence by "giving" loan forbearances and "affordable" workouts, all to keep the idiotic sharecroppers on the land. They don't want prices to fall, because then the smarter sharecroppers who stayed out of the fray will move in and pay much, much less.
The banks won't discount their REO's much because the PMI has already paid them in full. Yet, they may be "generous" enough to consider writedowns, why? The bank can dictate the terms and the writedown percentage will be far less than the decline of the homes price in a truly FREE MARKET.
So anyone who sat this greed fest out cannot buy at the lower price, only idiots who bid it up can, sounds like a free market to me. Where were their heads located?
A goat roped sharecropper pays $600K, but gets it for $450K after the $150K writedown, and the appraised "value" stays at $600K. Losers are the MBS investor who got screwed by the "safe harbor" loan workout legislation which protects the lenders; the sharecropper who gets the "privilege" to stay as a debt slave to pay the bank and county tax assessor at an artificially higher market rate; the renters in the area who are willing to "crowd in" to support the artificial price levels and greedy landlords; and those who stayed out of the fray and could have bought the home at an real and supportable fair market value, perhaps $300K or less.
The winners: the politicians who spend the county tax assessors money lining their friends pockets and their sponsors, the banks. So much for those ballyhooed urban myths "the home ownership society" and "the free market". Where were their heads located?
Absolutely disgraceful and proof that democracy is truly dead and this country has been run into the ground by a pack of profiteering prostitutes. We have been reduced to a socialist police republic run by the house of finance and their whore politicians, who cannot help themselves from buggering Lady Liberty and the publics arse at every opportunity.
Unfortunately for the rest of us, this festering pack of elitist sodomites with cash hard ons for brains are in for a very rude awakening. They are in the process of discovering that artificial asset pricing support will not work in a market in which the supply and production is not vertically controlled from the source. i.e. the oil and diamond cartels.
As we have stated before, it is different this time, as wage based inflation did not play a part in the price run up. Creative financing, free money, non existent mitigation of risk and plain old greed did. Where were their heads located?
Therefore jobs and the pay must be comensurate with and support the rents and values. Until that day comes, the asset prices will and must continue to fall to their proper equilibrium price.
Any effort to contradict this natural market action through socialist bailouts is an abomination and shall fail miserably, with dire consequences for what little remains of this tired old republic. By the tone of Bernardi and our elected officials comments, the paper trails have been swept under the rug and options of legal recourse are blanketed by "emergency" legislation, and their friends have walked away with pockets that are plenty full.
This is why we, those of us who are left to pick up the pieces, are counseled to "adapt and overcome". We are told this is a global financial crisis of the gravest nature. Sounds to me like, I got mine, now shut up and don't disturb my ill gotten financial gains. Where were their heads located?
Instead of taking ownership and paying the consequences, the moneyshuffling engineers, their co-conspirators and sympathizers want to be pitied and treated like addicts. We pity neither addicts, fools, nor greedy bastards, because they all KNOW what they are doing is inherently WRONG.
You abuse yourself, the system and others because you are weak and feeble minded. You made your bed, now sleep in it, let nature take its course and further, PULL YOUR COLLECTIVE HEADS OUT OF YOUR GREEDY FAT ARSES AND DON''T TREAD ON ME!
Recommended reading: On 03/25/05 we went on record regarding the urban myth "The Home Ownership Society" in "The Sharecropper Society".
On 11/07/08 we went on record regarding the limited number of people whom should receive assistance, and why in Let Them Eat Cake II - The FHA Bailout.
On 01/25/08 we went on record regarding the banking bailout hidden in higher GSE loan limits within the Economic Stimulus Bill here.
March 2015, TEN YEARS AFTER, I'd Love To Change The World...
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