Thursday, August 8, 2013

Millennials, the Bankers Are Attacking Real Estate, But You Can Crush Them

Millennials, you can crush the bankers by opting out of home buying. This is not financial advice, as I am not a financial advisor nor am I an attorney, but rather is an appeal to your patriotism. Will Rogers, a great American in the Great Depression, said that if you don't borrow, bankers will have to find real jobs.

Turns out that they are worried about you. Obama says that you look at the rich, like the Kardashians, and get discouraged about attaining home ownership and a middle class life. But don't be fooled, the bankers and their mouthpieces, Obama and both political parties, are the ones jacking up the price of houses, making your attempts to become traditionally middle class more difficult, and you would do well to crash those like they have never been crashed before, by economically boycotting the elite cabal.

You don't need them. You don't need debt and you don't need the ruling class pushing you to buy or even rent, when you can share rent with roommates and family. You can live a better life when you have income freed up. And you can't have income freed up if you are slaves to the ruling class and slaves to debt. If you stop the housing recovery you will crush the bankers. And they know it.

This is the problem with the bankers. They are greedy. They are not patriotic because they are international. They don't care about you unless you are in debt to them. For a banker, debt is money, debt is profit.

If they can't make money off you they will try to make money off of consumers in other nations. They have been smarter than us though, and the bankers have found it is hard to make as much money off of them. That is where the bankers miscalculated when they ruined the middle class last decade.

You need to understand the motives of the bankers.  The motive is to pawn risk off on the borrower and the investor. That is what the bankers are about. You cannot trust them now any more than you could trust them in the easy money bubble of the last decade. If the truth be known, they have given out easy money again, to companies like Blackstone, who owns 32 thousand houses that a Wall Street firm has no business owning.


This easy money has gone to the uber rich. And first time home buyers are being left behind. It isn't your fault, Millennials. And it wasn't your parents' fault, as so much easy money was made available to them that it single handedly inflated the price of the houses before the crash.

Can this inflation of house prices in this decade end any other way? Not if you stomp it out, Millennials. You are stomping out the financial cockroaches who want to swarm your lives. They don't deserve you as their prey.

You young ones are winning. You are not buying. 29 percent of you are getting mortgages compared to 40 percent historically. You have different goals and you have learned not to trust the greedy bankers. Risk is now greater for you if you borrow from them.

So, Millennials, don't get caught up in the greed of home ownership. You will get offers and pressure. You will be brainwashed. But remember one thing, jobs that are being created cannot bring home ownership back. They don't pay well enough. 

So, you also need to know what schemes the bankers have up their sleeves. No one has a crystal ball, and there are legal restraints, but banks could get around those and lend really easy money. That would be a huge temptation. That sort of bubble may be very short lived.

And the bankers already have a couple of new schemes to pawn risk off. They pawn risk off onto borrowers, investors, and, yes, government. So, they pawn risk off on borrowers by seeking the destruction of the GSE's, Fannie Mae and Freddie Mac, so the big banks can take over that business. They want those GSE's to go away in order for interest rates to rise so they can make more money on their mortgages. They can do the easy money down and the higher interest rate and win out.

They pawn risks onto borrowers by making the loans difficult to pay back. That assures them that they can get their houses back when the mortgage fails.

But mortgage demand is going away. That you Millennials are not cooperating make their plan shaky at best.

They pawn risk off onto government by allowing government to refinance loans that are troubled or risky with little down. That gets the loans off their books, and causes FHA to become another, you guessed it, GSE! Yes, they are replacing one GSE with another.

They are pawning off risk onto taxpayers through FHA because when those non guaranteed loans are refinanced by the FHA, like magic they become government guaranteed loans! 

And don't forget how the bankers and their Wall Street buddies want to pawn off risk to investors. They want to take rents, and bundle them into rent backed securities like the mortgage backed securities which were fraudulent. So, rent backed securities could be a problem if these force rents up, causing folks to vacate the properties, and thereby making the securities worthless. 

I wrote in detail about how this would be the next real estate scam on Business Insider, when I contributed there, and sure enough, Blackstone and a To Big to Fail banks are determined to work out the details about this security. I would not say it is fraud, at least not yet, but it is certainly predatory to pawn risk off onto investors, because it will put money into the hands of these Wall Street companies to jack prices up even further for housing.  Rents will not keep up even if they try, because people only have so much money.

This rental backed securities scam is also predatory toward the renters. These companies will try to charge more for rent, but my prediction is more multigenerational living, more roommate living and more apartment living as people get wind of this abuse and flee housing forever, even as rentals. Folks will rent apartments instead, until their owners get greedy.

So Millennials, you have a huge responsibility to just say no. Just don't be sucked in to the many scams and abuses that Wall Street will send your way. Wall Street is like a beast that is hungry. And you are the prey, if you let the beast swallow you.

But you can crush this beast by not playing the game. And the beast knows this.

And don't think that this article is a boost to the Republicans. It is not. While both parties are in the pockets of the greedy bankers, the Republicans are home to the neocons. They are crazy, and they are murderous. The bankers would do well to realize that they are in danger if they continue to support these neocons. I wrote about them at False Flag Murdering Neocon Crazies on Amazon and urge you all to read that book, which is in ebook and audiobook form.

You can contact me at bgamall4 at Yahoo dot com.








4 comments:

  1. What do you think about FATCA signed into law by Obama back in 2010 ? I think it is destroying American business. Now government wants to tax what regular Americans earned overseas.

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  2. I don't have a problem with it. There is so much tax evasion in the world that sovereign nations should be able to go after it. If Americans earn money overseas, and that money is taxed, then that could be a problem. But stopping offshore tax evasion is ok by me.

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  3. Money made oversea should not be taxed as that will discourage Americans from investing in oversea companies;America will slowly retreating from the world while China, Germany and India are expanding.
    But "exporting " money" to oversea as tax evasion should be stopped

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  4. That makes sense to a point. There are laws that exist that require some money come home. Exporting money should be a criminal offense.

    ReplyDelete