Thursday, February 7, 2013

Bullcrap Ben Bernanke Has Telegraphed Another House Bubble

I have predicted another housing bubble since 2010. Things were bleak then and most people laughed at me and called me crazy. I hold out the faint hope that those laughing critics will still be proven right, but the bubble has started.

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.

#bullcrapben


8 comments:

  1. curious, where did you predict another housing bubble in 2010? link?

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  2. Thanks for the question. I posted my prediction at the bottom of this article: http://www.businessinsider.com/fox-news-tea-party-housing-regulation-2010-11

    I put a lot more articles on BI in early 2011 warning of the bubble. Here is my author link there: http://www.businessinsider.com/author/gary-anderson

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  3. Do you have any idea how many people were sucked into foreclosure via the rigged HAMP program? Read Barofsky's BAILOUT. If these idiots had reduced interest rates like Japan did years ago to 0-2% or if they had investigated the inflated appraisal schemes in 2004 when the FBI warned them - their may not have been the housing bubble and crash of 2007-2008.

    You see, the banks knew in 2002 when RTC vs. Key Financial was decided that they were duck soup. The older investors were going to want to get out because from the 1970's these banksters had "inflated appraisals, abandoned underwriting guidelines and over rated bonds." This was not a new process in 2008 when Lehman failed. This was the result of 30+ years of corruption. All they did in 2002 was ramp up their game, not curtail this crap.

    The majority of homeowners would have been able to save their homes if they had been given some time and reduced the payment program. Homeowners were not looking for a free home when they wanted to refinance, wanted HAMP to help and had good credit scores - it was the banks that could not perform.

    The banks wrote more loans than they could legally hold. So when you hear these peon figures of 11 million homeowners underwater - know that these banks wrote over 84 million loans between 2003-2008... the majority of which are inflated and fraudulent...and many yet to be discovered. www.deadlyclear.com

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  4. Good point, Deadly Clear. So going forward, the bankers will do the same thing, puff up the value of the homes. But the dangers going forward are income losses, easy money loans en masse, and government guaranteeing everything. The banks will not perform in a low interest environment. They want higher rates and teaser rates down the road.

    Thanks for the comment.

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  5. Gary, I live in the SF Bay Area and home prices have begun rising. However, it seems the buyers are foreigners, IE..Asians, Russians and Far East Indians that are buying the homes with cash. Not just 20% down but cash purchases. The SJ Mercury ran an article recently indicating this. I bought a condo in a very good part of San Jose in Aug/2011. I was the only person that put in an offer. Come March/April 2012, sellers were/are getting multiple offers. After only 6 months when there was very little selling, a buying frenzy started. I suspected then that the Banks were doing something underhanded and now you seem to think that the hedge funds along with the Fed banks have cooked up another scheme to keep the real estate money rolling in. Only this time, at least in the Bay Area, it is not Americans who are buying the homes but the foreigners. So to summarize, is it possible that the Hedge funds and banks are in collusion and they are offering incentives to these foreigners to buy our American homes?

    Thanks

    Concerned on Main St

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  6. Hi anon, you know, hot money which usually is involved in bond trading and the like, came from the world over to help "fund" our last housing bubble. It would not surprise me that wealthy folks are coming in to buy SF homes with additional investments in the hedge funds as well.

    We know that in the Japan bubble, house purchase money overflowed into California. The end of the Japanese housing bubble severely hurt the California housing market in the 90's.

    And we know that the housing bubble of today is experiencing the same effect from China, where, as this article shows, the housing bubble is exploding dangerously in China: http://www.doctorhousingbubble.com/china-real-estate-bubble-china-buyers-california-real-estate-property-transaction-tax/

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  7. I love conspiracy theories, at least they are now worth the paper are printed on. Thanks to the internet! There are still, according to the people in real estate I know, still homes that Banks have yet to put back on the market from the last crash... that also helps answer your conspiracy theory. I am however glad that you all have the right to express your own thoughts much like David Einhorn's suit against AAPL to pay out more of it's $$$ to shareholders. Maybe someone will listen to your theories and what the Feds say and draw a line in the middle.

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  8. Hey Eric, while you disc conspiracy theories you may want to read this: http://say-no-to-recourse-loans.blogspot.com/2013/02/the-richard-wyckoff-stock-trading.html

    I suggest that many conspiracy theories have a lot of evidence to back up the claims. I subscribe to the Kennedy Assassination theory, 911 conspiracy, and the banker bubble conspiracies. I suggest you read the link I just gave you because conspiracy for stock manipulation even has a manual.

    ReplyDelete