GodEmperorLeto said:
The US housing bubble burst because of a multitude of factors, stemming back to Clinton's initiative where "everyone should own a house" back in the mid-1990s, and culminating with the bad loans that banks started giving out. The gave these loans out en masse, which is the problem. Backed by the government, it doesn't seem that bad to give one risky loan, but the multitudes of bad loans is where it is reaching a high point. Loans are given based on analysis utilizing very specific rubrics, and these rubrics cannot necessarily take into account the uncertainties of the future economy.
I'll try to make this as short as possible.
It's not a matter of politics and one cannot blame it on Clinton, because it is the fault of the Fed and Alan Greenspan and it matters not who was president at the time.
Ever since the US dropped the gold standard for the US dollar in the 70's, the US has been playing "hide the recession" for the past 30 years. First it was the Star Wars initiative during Reagan's administration which kept the economy afloat by building more weapons after, in the Carter administration, interest rates went as high as 19% and the US was in a full blown recession. It was not Carters fault, he was just the dupe in office when the economy collapsed due to the dropping of the gold standard.
When that started to fail after Russia collapsed, it was the Dot.Com boom of the 90's which hid the start of the recession of daddy Bush's term in office. When the dot.com bullsh*t started to go bust, the Fed enticed congress to pass, and the president to sign, the housing bill and mortgages rates and interest rates dropped to historic lows. And anyone who had a pulse would get a mortgage whether they could afford it or not. The point was to fool the world into thinking that the US economy was strong. It was not the president. It was the Fed! It matters not who was the president because a republican would've been forced to sign it also or they would not be in office. No one gets to run for president without the backing and approval of the worlds bankers or I should say
bankstas. If one believes in free elections and free candidates in the US one needs to do alot more reading and research on who actually selects these people. Anyway I digress.
The banks in their greed chopped up these mortgages up to 32x and sold the derivatives to foreign countries in the form of Credit Default Swaps(CDS's), Mortgage Backed Securities (MBS's), Asset Backed Securities (ABS's) etc, etc, which no one understood or could explain and housing prices and speculation went through the roof.
When the loanholders started to default when their low "teaser rate" adjustable mortgages started to go up, they couldn't afford the mortgage any longer and just walked away giving the keys to the bank. This put more houses on the market along with the numerous builders building numerous homes in anticipation that the boom would continue, and prices started to decline due to a glut of homes on the market. As more houses were foreclosed upon it led to the bust and the trouble we are in today.
Now that that Turkey has come home to roost and the bubble has burst and the massive derivatives that have been sold around the world are now worth pennies on the dollar, the banks and investment houses are going broke as they bought billions of dollars worth. And siunce each mortgage was chopped up and sold 32x we are looking at huindreds of trillions of dollars lost. Some have even put the figure at 1 quadrillion dollars which is more than the entire worth of the entire planet earth! Iceland is even considering declaring bankruptcy and is the first country to even hint at it.
The blame lies clearly at the feet of the US Federal Reserve System who, as I said above, has been hiding the recession for the past 30 years and at the feet of the major, former, investment banks which are no longer in business thanks to their greed. And now they (The US Fed) are reaching for straws for anything that may work and the US taxpayer, as well as the UK taxpayer, and the European taxpayer is now being forced to pay for these bailouts when simple economics would tell you that they shoud be allowed to fail. Push the reset button and reboot! But no, they want YOU to pay for it for they do not want to lose their own money as they control everything anyway. They want to continue living the high life while you and yours suffer for it. "Let them eat cake!"
As was planned well in advance, they now have the populace of the world so confused and worried about their jobs, investments, retirements, homes, etc, that the average person has no time to even think about how they were swindled and robbed.
It is the greatest transfer of wealth from the working class to the elites in the history of the world and it will only get worse before it gets better and "they" will have their ultimate goal of a One World Government, a One World Banking System, and a One World Judicial System, as well as a One World Military. It is happening before your very eyes and most people do not even understand it is happening or what is hitting them.
The world financial system has changed forever and it will NEVER be the same. All stock markets just may go to zero and, when everyone has lost everything and are broke, they will reset the system and they will be the only ones with all the cash while the average person has nothing and will be forced to work for the "state". Sound familiar? China? the former USSR? Marxism anyone?
CNBC is stating today that Americans have lost 2 trillion dolalrs from their retirement funds in the last 15 months!
I knew it would happen. I just didn't think it would happen this soon. I thought at least another year or two and that the US would be unified first. But, to quote a line from a famous movie, "They'rrrrre heeeeeere!" and "they've" stepped up their pace.
Today, the stock markets of the world are in complete disarray and no one can explain it. I spoke of this over a year ago on various threads about Lehman, Merrill Lynch and American Express, etc and I was derided and called a conspiracy nut, but sadly, it is all coming true.
Gackt21 said:
This is very true. The only difference in China is that it is still communist and the government control everything. The United States and the rest of the world going suppose to be going on a Captialist market, which is a free market way of doing things. The only problem now are those loans that the government has forced banks to give to people who really can't afford homes in the first place. Then the government decided to bail out these banks for the problem the government caused. The United States might be turning socialist if we get a Marxist for a president.
Sadly the governments of the US, UK, and Europe, as of today with their bailouts are stepping up their pace to control everything! After this they will controill the financial markets and they will not give them up. The US, with the demise of the investment houses are no longer a free capitalist country and the same will be for Europe and the UK.
If we are not on the verge of a One World Financial System, et al, why then have the central banks of major industrilalized countries (except for Japan) of the world lower, in unison, their lending rates by 50bps (1/2%)? Hmmmmm.
The only reason why the governments are bailing out these institutions is because, if they delared bankruptcy, their balance sheets would be exposed to public view and the world would understand just how much toxic, worthless debt they actually had and you are getting to pay for it! Happy?
Gold and silver and or their related stocks will be your only safe haven as, unlike stocks, they will never go to zero and only are worth more in tough economic times. Always has been and always will be unless they scheme to find some way to steal that last safe haven of the average working stiff also.
In the end China will be free of this meltdown and the world will soon be turned into the same state run, centrally controlled system that has been so successful in China as even Henry Kissinger, the kingpin maker himself, said that the US should emulate China because so few control so many.
If you ask me, the few could NEVER control the so many (billions) without the many controlling each other!
Welcome to the New World Order!