Beyond ForeclosureGate – It Gets Uglier

Posted: April 22, 2011 in Uncategorized

All,

Those of us who have vaguely suspected that Bush’s “Ownership Society” was just the opening gambit in a scheme to disliquidate the middle class, now have some reason to suggest that it is no conspiracy theory, but part of a deliberate plan to strip the middle class of property-ownership status by transferring all that wealth to the oligarchy.

Before you write that off as just a conspiracy theory, read this article.  You will not necessarily find fire, here, but you will certainly find a suspiciously large volume of smoke.

Scott

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Beyond ForeclosureGate – It Gets Uglier
Posted on April 21, 2011 by Michael Collins

http://coto2.wordpress.com/2011/04/21/beyond-foreclosuregate-it-gets-uglier/#more-15647

…The surface scandal is about fraudulent business practices and a systematic assault on homeowners by lenders, servicers, and the legal system. A much broader picture must be viewed in order to understand the utter contempt that the ruling elite has toward citizens and the depraved tactics used to express that contempt, all to serve endless desire to accumulate more money and power.

The set up began when we heard about the ownership society in the 2004 presidential election. President Bush defined ownership as taking the government out of our lives so more people could own homes and control their destinies. The foundation was home ownership. As Bush said on the campaign trail, “We’re creating a home — an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property” October 2, 2004.

Then Federal Reserve Chairman Alan Greenspan was uncharacteristically coherent when he laid the foundation for the swindle earlier that year. Greenspan told the Credit Union National Association that the fixed rate mortgage was “an expensive way of financing a home.” He was clear when he advised lenders that, “consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.” February 2, 2004. Home equity through exotic mortgage products fueled consumption and became the new “margin account.”

The Chairman of the Federal Reserve and the president ratified the real estate bubble, already underway at the time, as political and financial doctrine. The advice was clear. Get an ARM, own your piece of the American Dream and spend that equity. Housing prices never go down, right? (Image)

Freddie Mack, Fannie Mae, Wall Street and the big banks provided the back room. Mortgage Backed Securities (MBS) derivatives were vastly expanded. This made it easy for more homebuyers to qualify for mortgages they might not otherwise get, credit standards dropped. Those with good credit saw an array of tantalizing zero interest loans and other mortgage products to maximize available cash and feed the stock market.

It was all good until it wasn’t.

The real scandal is the unfathomable loss of wealth and opportunities by the vast majority of citizens and the vicious attack on the most vulnerable citizens as a part that process. The attack continues and is worthy of review…

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