We know that the hedge funds have purchased housing in order to keep the market forces from dropping the value still further. They are in collusion with the Fed and the TBTF banks to keep bank balance sheets from dropping. First time home buyers have dried up, and house prices in bubble areas have gone up well over 10 percent in value in the last year.
Mike Whitney gleaned a little quote from Bullcrap Ben and this is worth reading:
“Federal Reserve Chairman Ben S. Bernanke said the Fed will take action to speed growth and a rebound in a housing market facing obstacles ranging from too-tight lending rules to racial discrimination….Bernanke said while tighter credit standards after a collapse in the subprime mortgage market were appropriate, “it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery.”… Bernanke said housing-finance authorities have taken steps to “remove barriers to the flow of mortgage credit” and referred to efforts by the Federal Housing Finance Agency and by Fannie Mae and Freddie Mac to clarify rules surrounding mortgages that go into default.
If that isn't telegraphing another housing bubble what is? Then when these minority homeowners fail, guess what? The banks will blame them for the housing bubble. But this statement is proof that Bullcrap Bernanke is the one who wants the new housing bubble and he should be the one that will be blamed, but his media won't let it happen.
When you have guys like Henry Blodget saying that the banks are not a criminal enterprise, then you know media will be showered with rewards if the banks are able to pull of another bubble and steal from MainStreet so soon after the last massive theft of wealth.
But Henry would say there is no law, and the bankers were not criminally responsible for the housing bubble and crash. Well, maybe there is only a law on the backside, the selling of the fraudulent securities. That was not pursued, Henry.
Still, there should be a law on the front side as well, Henry. And you should warn the people as the bubble gets rolling and people get loans they cannot afford. (Note, Henry just wrote this article so we will see how fervently he admonishes and condemns the bankers.)
Henry will, most likely, become fed up with the bankers at some point, and how that will affect his access to MainStream media will be curious to watch, indeed. Once the banks pile on the minorities again for the mortgages gone bad, will Henry speak the truth in disgust? And will anybody listen, even to him?
That is my opinion only as I do not know the inner workings of Business Insider beyond the message that my article was too anti banker. That I will never forget.
So, will the bubble happen or will the naysayers be proven right? The issue is whether the bubble can leave the gravity of the earth, or will it pull down household formation. Yes, there is increased rental household formation, but there is decreasing buyer household formation. First time buyers are not participating in the program. Will the house bubble to come manage to change that?
Determining whether the bubble will work will keep banks and hedge funds up at night. How soon can Bullcrap Ben fool the American people again? I have said that Greenspan and Geithner were directly responsible as Fed leaders for the last housing bubble. But I was ignored by Business Insider and was even told by an editor that my criticism of the banksters was too harsh.
This was the article that caused the response from the Business Insider Editor. I let you judge if it was too harsh. It exposed the bubble to come, and now it is coming to pass, with the next step an acceptance of people with low credit scores for loans they cannot pay back.
That article was a scoop, a real scoop, and some wanted it to get air time, but the senior editor or editors won out. The article got almost 4000 views, but that was because of Patrick at Patrick.net. And that was the only reason.
Now Bullcrap Ben is wanting to fulfill Jamie Dimon's wet dream of another housing bubble as was uncovered in my article. Sickening.