Federal
Reserve Doesn't Say So, Thanks
to ARMs, Mortgage Holders EDITOR'S
COMMENTS Authors Brown and DiMartino are pretty smart Guys and Dolls! From Ms. DiMartino we have this priceless quote: "People usually turn to ARMs when rates spike so they can save some money," said George Yacik, vice president of SMR. "Today, people are buying the most possible home, with the lowest payment available, at the prodding of their mortgage broker." Many of these people are stretching themselves beyond reason, he said, and will run into serious problems down the road. "ARMs let people borrow extraordinary amounts of money compared to their incomes," Mr. Yacik added. When Ms. DiMartino starts writing about Ocwen Federal Bank coupled with the phrase at the prodding of their mortgage broker, we suspect this fine Lady Journalist will have also discovered insider predatory lending, insider foreclosure, and insider mortgage servicing fraud as an adjunct of the Federal Reserve's monetary policy toward real estate holding up the financial houses on Wall Street as well as the second tier central banks, the Dahlin' GSEs, and the rest of the insiders who pump the money from the rape of Main Street America to the banking cartel. Her observation that mortgage rates don't move in lock step with the operations of interest rate rigging by the FOMC at the FED is most astute... it is related to the 10-year treasury... probably got overlooked by 99% of the nice folks who read her powerful sweet and short essay. If the nice folks in China and Japan should suddenly decide to phone home their money from the treasury/bond market, increasing interest rates for the mortgage industry for real estate, could leave the folks at the FOMC covered with tar and feathers, as foreclosures increase, jobs are sent off-shore, and their minions at predatory lending, foreclosure, and mortgage servicing fraud are revealed in this scam. We suspect that when insiders like Ocwen and Fannie Mae go down, so will the FED. The FED under FIRREA 1989 created this financial wizardry mess.On these new-fangled loans, Ms. DiMartino reveals: Problem is, many of these new-fangled loans have yet to be tested outside some number cruncher's office. I'm sure there are sensitivity analyses out there attesting to the soundness of an interest-only, no-down-payment, adjustable-rate with a why-pay-PMI-when-you-don't-have-to piggyback-on-the-side loan. In fact, no study can correctly predict the Armageddon scenario I fear. Financial Wizardry Breeds Financial Armageddon, I fear. However, you can bet your bottom FRN [Federal Reserve Note, or bottom dollar], that the insiders will make a profit in the Rape of Main Street America. Ms. DiMartino's essay is a nice easy read, and well done. I haven't read much of this Journalist, but I suspect given a nasty story on predatory lending in the Dallas Market, she's a barracuda! Flipping the hat, Author Brown, whom I have read quite a bit, takes a more satirical style in his opening: It was a soothing message: The United States is "not in the midst of a home-price bubble," Federal Reserve Chairman Alan Greenspan said recently, arguing that soaring home prices are not at all like the soaring Internet stocks that collapsed four years ago. Hopefully, Greenspan's right. But even so, you should be leery of grabbing the biggest mortgage you can get. There's plenty of risk in today's high-priced housing market. Central bankers and the banking cartel lie. We are in the greatest real estate markets bubble in 400 years of economic history and Mr. Greenspan and his minions at the FED, are just flat out lying to the press covering their Elitists' Behinds. The FED and their minions, like Ocwen, are going to make one potload of money when they send all of us to the Late Mr. Ashcroft's debtors' prisons [pun, joke, and satire intended] when the stuff really hits the fan. How many more years of sending jobs off-shore and opening the borders to Mexico for all the illegals to become part of the social welfare give-a-way state? -- will it take for the fan blades to get knocked off? Nothing like buying at the top of the market, is it? Debt per household at 108% over earnings is much like Ole Man Ozark's observations on the Loan to Deposit Ratio being at 106%! Heck, we don't need any liquidity! Author Brown says a lot in these two paragraphs: Of course, if the nation were in a housing bubble, Greenspan would bear some responsibility. By pushing interest rates to four-decade lows in recent years, he enabled people to borrow more, and that caused them to bid housing prices up at an extraordinary pace. Greenspan has a vested interest in discouraging talk of a bubble. Greenspan said the rise in mortgage debt is partly due to good causes: More people have switched from renting to buying, lenders approve applicants they used to turn down and homeowners are using low-cost home equity loans to clear away high-cost credit-card debt. Mr. Green Eggs and Ham is mostly responsible for the housing bubble, since he is the chairman of a fraudulent central banking and monetary system. He enabled through the GSEs, the program to allow illegal aliens to enter the mortgage pipe and realty market food chain supporting prices on the high end. He cause price inflation in every real estate market in America through the monetary destruction of the US Dollar Printing Press, a currency unbacked by specie. Mr. Green Eggs and Ham has a vested interest in keeping you dumb, Blonde, and ignorant on real estate and real money. He's also part of the gold and silver manipulation scam, so go figure! More people moving from renting to buying single family real estate sets up a lot of apartment projects across the land for lower values due to decreased NOI [Net Operating Income] because of increased vacancies. Every market I witness are building apartment projects like there is no tomorrow. Who's this jerk [Green Eggs and Ham] kidding? Lenders will approve any warm body for a loan because they can get the property appraised at whatever they want it to appraise at, and the predatory lending goes on.... Sonny and Cher had a hit song....The Beat Goes On! Nine out of ten refinance applicants who used home equity loans to clear credit card debt, didn't tear up their credit cards, and they are now back up to their Ying-Yangs in credit card debt with less home price appreciation [destruction of the monetary system] to cover their Assets. These are two parallel essays, which are so inter-woven in their content, Authors Brown and DiMartino, might as well be Mutt and Jeff! Their pen is a great read! Ole Bear, Editor
Gale
Bullock [Ole Bear Editor]
– just another ornery Ole Confederate! © 2004 Gale Bullock, Realty Reality |
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