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Showing posts from May, 2013

Haunted By The Last Housing Bubble, Fitch Warns "Gains Are Outpacing Fundamentals" | Zero Hedge

Haunted By The Last Housing Bubble, Fitch Warns "Gains Are Outpacing Fundamentals" | Zero Hedge

Fitch warns that house price gains are not fundamentally sound and could even reverse. I have been saying that of course. There will be massive volatility in housing because the foundation of stability, the 20 percent down mortgage, is toast.

Carrington Stops Buying U.S. Rentals as Blackstone Adding - Bloomberg

Carrington Stops Buying U.S. Rentals as Blackstone Adding - Bloomberg

Heads up. Hedge funds are putting a halt to their mass investment in US housing. The next wave of investors could be left holding the bag. You can't raise rents when you have a boatload of houses out there for rent and you have many sitting empty and you have wages stagnating.

Higher inventory causes rental rates to fall flat | HousingWire

Higher inventory causes rental rates to fall flat | HousingWire

Rental units are surging as investors place their cash purchases on the market. This is flattening out rents and even causing rents to decline. This is good for renters, in most markets, but bad for the small investor who could be wiped out. Lower rents could ultimately be good for the economy, but big hedge fund buyers may want to dump at some time in the future.

If house prices go berserk, rents won't keep up the pace.

International Energy Statistics

International Energy Statistics

The total world oil consumption does not justify the high price of oil. Decline in Europe and in North America is massive. It is past time that the banksters release oil from a cornered market of gross and greedy manipulation. If you look at the chart you will see that Asian increases have not offset Europe and North America decline in usage. Wake up America and demand an end to high oil prices.

Germany's DZ Bank to end food commodity speculation | Reuters

Germany's DZ Bank to end food commodity speculation | Reuters

Step in the right direction, however, governments must end food and petroleum speculation. We can't just rely on the banks to help mainstreet. As long as they can tax main street with speculation as I have said all along, then there will be no recovery in Europe or in the United States, or in Japan.

Sure, China and Germany are making out ok but eventually they won't have anyone to buy their products if the middle classes are dumped on by the speculating banks. This move by DZ bank is both courageous and long overdue. 

From the article:

Groups such as Oxfam and Foodwatch have said such trading is responsible for pushing up international food prices and exacerbating famine in poor countries. I have been arguing this point for YEARS, and this is mostly fallen on deaf ears. And we wonder why the economy is suffering.

My First Las Vegas Billionaire Sighting Steve Wynn at the Encore | CosmeticFlair.com

My First Las Vegas Billionaire Sighting Steve Wynn at the Encore | CosmeticFlair.com

On May 20, 2013 I spotted Steve Wynn at his hotel masterpiece, the Encore. You may find the article interesting.

Republicans Push the Agenda of the Economically Fittest Exterminating the Poor

Republicans Push the Agenda of the Economically Fittest Exterminating the Poor:

From the site:

A Louisiana director of a primary care organization explained that in his state “If the breadwinner in a family of four works full time at a job that pays $14 an hour, he or she will be eligible for insurance subsidies. But if they make $10 an hour, they will not be eligible for anything.”Truth is, the Republican fascist minority has proven itself as the enemy of the American people. If the above statement about the $14 dollar per hour fellow versus the $10 dollar per hour fellow is true, and there is no reason to believe this Republican, then the Republicans have forfeited the right to ever rule again in this country, not even counting their involvement in the 9/11 conspiracy.

This is a very troubling party of greed. God will have their souls and the Apostle Paul warned that they would oppress people. The poor will always exist, but showing no mercy will be judged.

The Republicans must trul…

You Democratic Bastards. Quit Acting Like the Republicans

Banks' Lobbyists Help in Drafting Financial Bills - NYTimes.com

Democrats are watering down banking regulation like the Republicans. You dirty swine. Shame on you you turncoat Democrats.

Free-Market Conservatism Kills/That Damn Oklahoma Republican Governor Won't Mandate School Shelters

Daily Kos: Free-Market Conservatism Kills-Oklahoma Buildings Don't Have Safe Rooms Because "Regulation Rankles"

As tornado belt states subject themselves to horror and death, the leaders of these states, mostly red, don't want to tell anyone to get a shelter.  According to one official, "government regulation rankles".

Are you kidding me?

And on the Weather Channel just last night I heard the Republican governor of Oklahoma, Mary Fallin, a class one idiot, say that she does not support even placing mandatory shelters in new schools. What a damn idiot she is.

Democrats are far from perfect, and I don't like lots of what they do. That is why I am an independent. But Republicans are clearly unfit to rule in so many ways. Free markets? What free markets do we have when the bankers manipulate the markets?

But I digress. The free market mentality that does not force shelters in tornado alley is just stupid. Old historic buildings all had shelters. That is ju…

Japan's Lehman-Like Moment - Business Insider

Japan's Lehman-Like Moment - Business Insider

You destabilize the evil world banking system with their interest rate swaps, at your peril, Japan.

Tea Party Congressman Chews Out IRS Official Who Pleaded The Fifth [VIDEO] - Business Insider

Tea Party Congressman Chews Out IRS Official Who Pleaded The Fifth [VIDEO] - Business Insider

Listen up people. Here is a Tea Party Congressman chewing out the IRS official. But the Tea Party is supposed to be a tax exempt, non profit organization. Yet we have a TEA PARTY CONGRESSMAN.

That, my friends, is what is wrong with this picture. The Tea Party is a political machine not worthy of tax exempt status.  

New Mortgage Lending Rule Intended to Protect Borrowers May Hurt Self-Employed - Yahoo! Finance

New Mortgage Lending Rule Intended to Protect Borrowers May Hurt Self-Employed - Yahoo! Finance

Just FYI: This lending law, which is supposed to be applied in 2014, is a law that will make sure that borrowers must be able to pay loans they get for house purchases back. Only problem is there was a law in existence, in 1989 that was supposed to do the same thing and yet George W. Bush ignored the law completely in the housing bubble.

I wrote about this law and here is an excerpt:

Turns out, if you make a loan to a person and don't adequately establish that he can pay it back, it is against the law.  This law is called the Financial Institutional Reform, Recovery and Enforcement Act of 1989 (FIRREA). The law requires that banks lend to people who are able to pay the loans back. One could say that W's failure to enforce this law was the direct cause of the housing bubble in the last decade. 

The Yahoo title is about as dumbed down as it can get. Nobody cares about hurting the se…

Once Again a Natural Disaster Foils Republican Desire to Bury Obama

We all know what happened in the presidential election. Romney was trashing government and Obama. Then Hurricane Sandy came around and the President gave aid to the stricken states with what looked like the speed of light compared to Republican George W. Bush in the Katrina Fiasco.

Now the Republicans are hitting Obama again with Benghazi, the IRS "scandal", and the Fox News leaking "scandal". These were not sticking much with the American people anyway.

But now another natural disaster has come to a red state and Mr Obama has determined to shower the state of Oklahoma with federal aid.

The Republicans look, once again, as the obstructionist and useless political party that they are.

The IRS scandal is not much of a scandal anyway. The Tea Party was applying for tax exempt status and yet it was supplying a slate of candidates for the 2010 election. That doesn't look like tax exempt to me. There is an easy fix to the "scandal".

A thorough review of all…

Big Banks Get Break in Rules to Limit Risks - Yahoo! Finance

Big Banks Get Break in Rules to Limit Risks - Yahoo! Finance

Just remember, for the record, that the Republicans stopped the implementation of tough open trading of derivatives and want the banksters to trade in secret. The Republicans don't want trading of derivatives to be placed onto regulated trading platforms although that is still the goal. So, with their opposition as well as the turncoat Democrat ,Mark Wetjen, rules for the banks are weakened.

The problem is, the TBTF banks have a corner on these derivatives markets. Making fewer banks involved in getting a deal cuts out the other banks. The business is a rotten one anyway, but made more rotten by the fact that the TBTF banks, like Goldman Sachs and JP Morgan can overcharge for the derivatives that they sell. Companies who need loans are forced to take the high interest fixed side of the derivatives if they want the loans. And they are forced to pay more since only the TBTF banks control the market.

The TBTF banks have co…

How Can I Get Out of Debt? - Yahoo! Finance

How Can I Get Out of Debt? - Yahoo! Finance

This is your typical losing Yahoo article about debt. It says pay your bills. Now, if you are in a multigenerational family, and plan to stay that way, you will have an easier time either 1. paying your bills or 2. walking away from your bills.

Credit scores are less and less important as time goes on for many folks. Many cities have lots of rentals where evictions are the  problem, not non payment of credit cards. Of course, if you play to borrow more or buy a house that is a problem. But why trust your fate to bankers who want to win and want you to lose if it is too their advantage. Be frugal, don't charge, and don't pay if family solvency is more important to you and your debt is large.

Don't be prisoners to the banks. Don't let the bankers tell you you are less than adult just because you aren't in debt to them!

Growing Up Will Help Economy...So Grow Up Already From Banksters

Growing Up Will Help Economy...So Grow Up Already

Don't be fooled, growing up means debt. Debt means profits for the banksters. After screwing the economy and making you young people cautious, they want you to be their slaves just like your parents were. Don't forget and don't fall for their insults. Larry Kudlow is a creep, and he has no control over your lives. Don't let him ever have control over your lives. He is a manipulative and evil human being who doesn't think being frugal is good.

Who the hell does he think he is?

QE Creates a Real Estate Scam

Because interest rates are so low, bankers do not lend long term to borrowers on the street. They lend to the rich and hedge funds who buy up the real estate with cash. QE allows the rich to get richer and the poor to get poorer.

The banker cabal must feed itself first, because there are dangerous derivatives. Otherwise, the banking system could unwind, throwing us into a massive depression. As it is, the depression is contained. It is a depression, that is the cycle is depression, but it is contained as the banks are made safe. It screws borrowers and savers, however.

The scam comes when the rich buy millions of houses cash, almost as many as are purchased by mortgages, and that drives the price of houses artificially higher. QE3 is the effort to get the bad mortgages of the banks off the books of the banks by artificially raising the prices of housing. The QE3 money doesn't go to house lending, but the banks feel stronger and then lend to the wealthy in order for t…

When Interest Rates Rise by Martin Feldstein - Project Syndicate

When Interest Rates Rise by Martin Feldstein - Project Syndicate

Martin Feldstein is an economist. He is also connected to the most diabolical clubs in the world. You can see this from his biography, which was posted at NBER.ORG without a copyright. So it is posted in its entirety here:


Martin Feldstein is the George F. Baker Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research. He served as President and CEO of the NBER from 1977-82 and 1984-2008. He continues as a Research Associate of the NBER. The NBER is a private, nonprofit research organization that has specialized for more than 80 years in producing nonpartisan studies of the American economy.
From 1982 through 1984, Martin Feldstein was Chairman of the Council of Economic Advisers and President Reagan's chief economic adviser. He served as President of the American Economic Association in 2004. In 2006, President Bush appointed him to be a member of th…

Business Insider is Starting to Disgust Me Thoroughly

Henry Blodget awhile back said that the banks did nothing criminal in the housing bubble crisis. He posted it in a comment section of one of the articles on BI.

It was wrong of him to do so. Things that should be criminal, like LIBOR rate manipulation and the new Interest Rate Swaps rate manipulation are just the tip of the iceberg.

Turns out, if you make a loan to a person and don't adequately establish that he can pay it back, it is against the law.  This law is called the Financial Institutional Reform, Recovery and Enforcement Act of 1989 (FIRREA). The law requires that banks lend to people who are able to pay the loans back.

But, the law was trampled in the subprime crisis, and it should be a criminal law. Henry Blodget surely knows that this law was ignored in the housing bubble precisely because there were no criminal penalties!

I repeat, there should be criminal penalties regarding that law instead of fines, which the big banks take as a slap on the wrist, without admitt…

The Biggest Price-Fixing Scandal Ever | Politics News | Rolling Stone

The Biggest Price-Fixing Scandal Ever | Politics News | Rolling Stone

As people know, I have been writing about the evils of interest rate swaps being forced upon business borrowers to protect against an inflation that will never come because of the swaps. This circular system increases the costs of doing business on main street. It creates demand for treasuries, as collaters, meaning that interest rates are locked in at low levels for a long time. This robs citizens of a fair return on their money.

The hollowing out of main street is made even worse by bank fraud, libor scandals, and anything that can push the interest rates down. This hurts the position of the borrowing companies, who have to take the high fixed interest rate side of the swap.

Well, now, Matt Taibi is saying that there is another scam associated with interest rate swaps. This scam affects the price of the interest rate swaps themselves. This scam is the manipulation of  ISDAfix, which is the benchmark number for pri…

Investing In Bitcoin - Business Insider

Investing In Bitcoin - Business Insider

 Henry likes Bitcoin. I think it is unAmerican:

 It is my view that any cashless society is for the purpose of the bankers controlling all digital dollars. It is dangerous and unamerican. I don't agree with Ron Paul on much, but I totally agree with him on this, bitcoin can't put cash in your pocket.

So I posted this response to Henry in the comment section:


But there are many places cash transactions are necessary. We all know the bankers want a cashless society so they can control all the money. As bad as Cyprus was, it would have been a whole lot worse if you couldn't pull any cash out. Or did you forget that. Did you not hear that Bernanke said it was unlikely Cyprus would happen here, which means it could happen here? Notice he didn't say it could not happen here?

But we learned from Ellen Brown that the money you put in your bank is not yours. Did you know it is a loan to the bank and technically belongs to the bank a…

Hedge Fund Obtains $2.1 B Loan to Buy SFRs – Investors Pay Attention!

Hedge Fund Obtains $2.1 B Loan to Buy SFRs – Investors Pay Attention!

Here is crucial information on what I call the Blackstone Housing Bubble. This is an artificial bubble that will not be sustainable without easy money loans. These houses are being rented and they want to sell in 3-5 years, according to some inside information I have. 

They want to put all the little guys out of business by allowing less of a deposit even though they are not cutting the rents that much.

The Housing Shell Game: Prices Up, Ownership Down � Counterpunch: Tells the Facts, Names the Names

The Housing Shell Game: Prices Up, Ownership Down � Counterpunch: Tells the Facts, Names the Names

Banksters are holding 7 million homes off the market to create the illusion of scarcity. Stay away or get burned. Just my opinion.

Libor Blamed On Wild London Culture - Business Insider

Libor Blamed On Wild London Culture - Business Insider 

Business Insider and the US press is following the LIBOR scandal, but apparently is not following the interest rate swap scandal in the UK.

But the UK press is and I wrote this article about it (see link above). Time for US companies to settle Interest Rate Swap deals too. The interest rate swap scandal is more damning, more revealing and more costly to the banks in the long run. They are related, as the LIBOR scandal made more money for the swaps business.

The Swaps scandal has to do with excessive profits off of interest rate declines as the Fed kept chopping interest rates, making the swaps even more lucrative for the banks. This justice should be applied to US banks too, as small and medium businesses and local government really got screwed by these swaps.