Seeing houses that once sold for less than a $80,000, go above the $200,000 levels, despite the inability of their current owners and potential buyers to be able to afford such increase in prices, was enlightening for those with the presence of mine. It was not uncommon to here a person say, ”I could in no way afford the home I’m living in, if I had to purchase at todays values”. Yet, millions did just that.
In hindsight, we now know the lenders/bankers lent money to millions of people that obviously, based on the number of foreclosures, were not able to pay for the debt they had agreed to pay.
I cannot help but wonder why this happened? We know “how” it happened, but why? Was it intentional, or was it really from stupidity and ignorance?
I have my theory and it is just that, but the evidence is pretty obvious. It was not a mistake based on ignorance or stupidity. Whether my theory is correct is another issue, but I can say, that I have writings and witnesses that I told such things to as early as 2002, “I think that FNMA and Freddie Mac are not going to be able to withstand the levels of delinquencies and defaults. Obviously I was right, as both quasi government/companies went under conservatorship in late 2008.
An interesting look at the concept of FNMA and Freddie Mac details a privately held company, with shareholders, both Common and Preferred, whose liabilities were guaranteed by the Federal Government as a government-sponsored enterprises GSE. So let see, “They” get to run the company, take all the profits, and if and when the crap hit’s the fan, Uncle Sam picks up the loses. Very Cool Idea for Them!!!!!
If you don’t know, Franklin Delano Roosevelt (FDR) came from wealth with ties to the banking establishment that created the Federal National Mortgage Association (FNMA) in 1938. They thought is was such a good idea that they created Freddie Mac in 1970. Why have just one cool idea, when you can have two? How much money the taxpayers of this country will end up paying, will take many more years to determine.
Bankers are very good at getting their desired policies enacted. It’s very simple, if you or your Congressperson wants to borrow money, to do anything, guess who you have to go to, to borrow it. Add in the monopoly powers of a central bank, our Federal Reserve Bank of the United States and voila, you control who gets the money, the underwriting criteria’s, the amount of money in circulation, interest rates and regulation over each individual loan in every single bank. The stories of what goes own in banking are so vast and encompassing that they literally spans the world. If you do not understand every aspect of central banking, it’ monopoly powers over the people and economy, you do not understand the political and economic system.
The Federal Reserve Bank of the United States is what is known as a Central Bank, a monopoly granted to those with the money (bankers) to “supposedly” provide stability to our economic system. That was at least how it was sold politically, starting in 1911, to the Citizens of this country. Within 16 years however, the “Banksters” as they are often referred to today, put us in the Great”est” Depression, ever in world history and they did it on purpose. The book, The Creature From Jekyll Island, a non-fiction by Edward Griffin, goes into detail how they lent out tremendous amounts of money, just as they did during the latest real estate boom and bust cycle, only to stop lending money, thus contracting the money supply to cause the Great Depression. Economics 101; increase the monetary supply causes increased prices and increased economic activity and a decreased monetary supply, causes prices to drop and people stop buying as the money dries up. The similarities between what happened between 1920 to 1929 and into the depression and what happened between 1999 and 2008 and into the recession/potential depression, if you subtract the GDP of the military industrial complex today. Those in power will not admit it, but we are in a Depression.
Don’t you now think “instability” is a much better word for what a Central Bank can do? Granting monopoly powers over various elements of a nations monetary system, to a bunch of this countries and worlds wealthiest individuals is the single greatest threat to human progress than any other single law. Incidentally, these same Banksters were behind the Federal Income Tax as well, as it helps them to extract money they put out in circulation.