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| let me just say. there is no escape. the planet has been hijacked by speculation, paper-pushers, derivatives, the fractional reserve system, and we are all fucked. period. no point in being cynical about it. just know you are fucked and move on. maybe even try to make money off it. but know that there is risk, because this system is not based on any real value, just speculation and debt. the end. read my book in the future: "Hijacked! How the planet was silently hijacked by usury and speculation."
heres a little excerpt on mortgages: what would happen if the gov outlawed mortgages? if mortgages were outlawed, housing prices would come crashing down. mainly because noone has $300,000 saved up to pay for a house. Prices would be forced to readjust in order to sell. So... imagine if you had to save hard for 3-5 years for a house. Then you can realistically see how much house you can afford. The current system in the United States serves the purpose of making banks rich, while enslaving mass populations. Think about it. If you watch the "Money as Debt" video posted earlier, you will learn that the bank does not need to have the money that it lends. Its the opposite. When you go borrow from the bank, you are signing a piece of paper that says you OWE THEM 30 years worth of service (assuming u took a 30yr fixed) and they CONJURE UP MONEY into your account. You are now indebt to them. The system does now allow any other way, because the existence of mortgages naturally drives prices up... So if Joe 6-pack wants to buy a house, yup, he has to get a loan from a bank.... This is a form of modern slavery. Again, let me ask you, what would happen if mortgages were illegal?
ps: the Xanga crowd is really very uninterested in rants, more interested in other shit... am i barking up the wrong tree here? i think i am.
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| My man Obama, says that he wants to give some kind of relief to homebuyers that are struggling with their mortgage. Sorry Obama, but I'm calling bullshit on this one. This is straight up bullshit. Lenders and borrowers created this housing bubble, crazy loans, no money down, adjustable rates... and now, finally, prices of homes are falling back to normal levels (a good way to determine normal is to compare historical rents vs. cost to buy). Now, if we start going to the legal system to try to "help" these troubled borrowers, we will truly be fucking with the credibility of our fucked up monetary system (see money as debt video) as well as propping up the real estate prices at these high levels... Basically, rewarding people who fucked up by living outside of their means, with tax credits and stimulus packages... WHERE THE FUCK IS THIS MONEY GONNA COME FROM?!? We are already gonna be paying for these loans to the finance companies. Which by the way, i'm not really sure how it works, if it gets taken through taxes, then when do I see that money back? Do i get a check in the mail saying something like "here is the money I owe you, -US Government". I doubt it. This whole shit is fucked up, the finance guys get to keep their overpaying jobs in big glass buildings that would/should be empty now due to bankruptcy, the dumbasses that bought these huge houses can continue to make a couple more payments on their mortgage due to "stimulus package" and meanwhile, the average joe/jane gets reamed! When will someone in this country stand up to all this bullshit and call it out. Seriously though, giving a stimulus package of $500 is not gonna make a lick of difference to the people that are overextended in their mortgage payments. In all fairness, politicians are just doing what they have to to get paid, and that is, to get votes. The truth is, that I think that there are plenty enough Americans out there that are ready for a real change, forget conservative, liberal, repub, democrat, etc... I think theres a good amount of people out here that just want the truth, and smart answers. Not lies and cover ups...
Done ranting. This planet sucks.
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| So what happened to FREE Market? What happened to Democracy?!? The government is making all the RIGHT moves for all the wrong people, and although I admit that I'm no economist, they are walking on some very thin ice. It all goes back to that video that I posted. When money gets borrowed, money is created. Therefore, when people bought these crazy loans for the last 5 years, LOTS of money was created. Enough money was created to take our country out of a recession (dotcom bust) and into the next bubble (housing). Once this money was created, lots of people got paid. The real estate people got paid tons in commissions. House flippers got paid. Contractors got paid. Banks got paid by selling their new money as bonds (is that how it works?). Finance guys got paid for buying these bonds. There was so much of this new money (debt creates money) that people were blinded by the obvious housing bubble and its insane reasoning (you'll be priced out forever). So now that people can't pay these debts. What happens to all that money that was created? That money just disappears (POOF). But instead of letting it go POOF, the government is going to replace that money that went poof, with taxpayer's money. So that the financial institutions, people that are SUPPOSED to know what the fuck they are doing, can remain rich, even though they are the ones that created this mess in the first place. HOW THE FUCK IS THIS RIGHT? fuck this administration. Yeah, theres other reasons, people's retirements are at stake, their money in the bank, etc. I don't wanna see total armeggedon, runs on the banks, etc. But this is too much. The people that caused this mess, and the people that allowed this mess to happen, should not be bailed out by tax dollars. That is irresponsible on the gov't and who knows where this Country is headed now. We are completely changing the face of the not-so-free market, to keep money in the hands of the people that were irresponsible enough to let this happen in the first place. Rather than let the economy go through its cycles, the government is now going to control it... WELCOME TO YOUR NEW RENT CONROLLED ECONOMY!
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| So yeah, all year long, people have been buzzing about the economy, and the finance sector, and the mortgage sector, the credit crunch, inflation, and energy prices... So my question is, what does this have to do with AIG?!? I am just simple-minded engineer. One that is trying to figure out the truth. How does AIG, and insurance company (that also has other operations including renting out airplanes) have so much exposure to the mortgage collapse? Someone, who is an expert, please tell me. In this article quotes Barry Ritholtz, chief executive of FusionIQ for saying: "essentially became the insurer of the financial industry". Is this true? How so? Through what mechanism does AIG lose capitol when other financial institutions lose money? Are they selling a hedge on the mortgages? Whats going on here? Next in this same article it says: "The government agreed to loan up to $85 billion to AIG over two years
in exchange for the right to buy 79.9 percent of the company. The hope
is that the money will give the company enough time to reorganize and
sell assets to repay the loan." So basically, if the former statement is true, than the government is using this $85 billion to "insure" the finance industry. This right to buy bullshit, whats the point of even having it in there. Why the fuck would the gov't want to have the right to buy AIG in 2 years? So that it can continue to stay involved in the business of insuring finance companies? What the hell is going on here?!? And who drafted up the 79.9% part? Why not 79.3? total bullshit.
There are 300 million people in the US. If we are lending AIG $85 Billion, that means that each of us are loaning $283 to AIG... Remember, just last year in 2007, finance companies were paying their employees RECORD bonuses. So yeah, I'm calling bullshit. I'm calling for free market. Where was gov't regulation before?!? Now, AFTER the rich have made themselves a shitload of money and walk away, the government comes in there with OUR tax dollars to fix the damage. You gotta be shittin me. Add that to the $200 Billion bailout for Fred and Fannie, yr talking more like $950 bucks/head... And Bear Stearns... Something is wrong here. Part of the problem is that most people don't really know how this happened, including myself. So, if I were to oversimplify, i am gonna guess that people borrowed money to buy the house, lots of people borrowed, lots of money was "created". Finance companies bought lots of this money (some more than others) from the lender (Fred and Fannie?) and then AIG had to insure this new money? Is that right? Now that these people can't pay their mortgages, all this newly created money disappears... meanwhile, real estate industry DID get rich, finance people DID get rich, and now the rest of the people of the USA have to pay off this debt... Why not just let the money (POOF) disappear? What are the ramifications of AIG collapsing? Is the US Gov afraid of unemployment, etc? Does the fed want to continue to feed the failing financial institutions OUR money through the AIG? Or are there just a bunch of rich good ol boys shaking hands and shaping the money/power structure however they see fit (bailout for bear, no bail out for lehman, bailout for AIG).... Sorry for the long rant. I know none of you have read all of this. If you got past the 3rd sentence, I salute you.
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