Another Sign That The US Economy Is Failing
While the Dow Jones Industrial Average is at an all time high and the present Administration would have us believe that this portends good things for the American people and their economy, the housing market in this country is telling a very different story.
For starters, the Dow Jones Index is only composed of thirty companies - a far cry from the thousands of publicly traded stocks that there are, and a poor representation of what is really going on within the stock market. And while the Standard & Poor Index is a better indicator, it still leaves much to be desired.
The strength of the housing market has for the most part always been a good indication of how healthy the economy has been. (Except for the artificial housing boom in the 1980's which occur ed when the Persians were forced to flee Iran after the Shah was overthrown, many of whom took refuge in the United States --offering two to three times the prices that homes in the certain areas of the Northeastern part of this country were selling for at the time).
This boom was short lived and created a new trend in which many people who thought that they would be able to buy a home and flip it for an enormous profit a year or two later, missed the window of opportunity in which to do so and got stuck with homes that they could not unload for what they paid for them. Making matters worse was that their monthly mortgage payments increased when their APR mortgage rates soared.
Financially strapped, many were forced to mail their keys back to the bank and abandon their homes.
This trend from the 1980's has now hit the State of California, and shows no signs of ending there. In fact this situation is only going to grow worse as 2008 approaches.
Anyone who has ever purchased a home will tell you that it is far more difficult (and of course better) to obtain a fixed rate mortgage if you are borrowing money to purchase one, than it is to get an adjustable rate mortgage which floats with whatever index the company doing the lending is basing that lending on. Once these adjustable rate mortgages (APR's) spiral out of control, those who agreed to them find themselves literally abandoning their homes and mailing their house keys back to the lenders.
It's kind of like purchasing a stock on margin and then getting a margin call that you can't cover.
This type of housing bust occurred in the 1980's on Long Island's South Shore and is now happening to many of California's middle class suburbs. A trend that will continue to occur over the next year nation wide.
Of course, the upper scale homes in California are now selling better than ever given that the wealthy always have access to money, while those who are working two jobs to pay for what would be meager mortgages to the rich, are unable to survive. However, I am referring to very expensive homes here. It is the super rich who are unaffected by these housing market busts, since they can afford to purchase homes with jaw dropping price tags, and simply buy when they feel like it, even though they could clearly afford to wait for a better bargain.
It is the well heeled, but not the super rich who still find themselves counting their pennies and waiting before they splurge on their new home. For this reason, even many homes that are worth upwards of four or five million dollars in the present day are languishing, with buyers believing that they will be able to obtain a better deal on them over the next year.
These buyers are correct.
The housing market in this country is about to take a hit like it has not seen in two decades.
This trend is indicative of what is happening across the United States as the richest one percent of this country continues obtaining greater wealth, while the rest its population is losing further ground each year, unable to support the ever increasing debt load that is being placed upon them.
The rich have never paid their fair share in taxes, and they are now paying less than ever, while you get stuck paying for what they should be paying for.
Does that sound fair to you? How many purchases would you have liked to have made this past year alone that you were unable to because of the money you pay in federal income tax? Quite a few I would suspect.
Ironically enough, if the Federal Reserve Bank and IRS (both operating illegally now) were shut down, the money that this would have saved those who recently lost their homes due to the increase in their APR mortgage rate, would have more than offset the additional dollars paid due to these increases. Instead, the privately held Federal Reserve Banking cartel (counterfeiter) gets richer, while many hard working American men and women end up homeless (or at least without the homes that they one day planned to own).
What is wrong with this country?
While books have been written on this subject, it's clear that the central bank is the main problem, since it has all but destroyed the purchasing power of the average American citizen, the result of printing currency that is based on nothing of intrinsic value. And this has led to the gradual erosion of the Federal Reserve Note.
So exactly how much can you buy with a dollar these days?
A quarter of a gallon of gasoline?
A pack of chewing gum?
For starters, the Dow Jones Index is only composed of thirty companies - a far cry from the thousands of publicly traded stocks that there are, and a poor representation of what is really going on within the stock market. And while the Standard & Poor Index is a better indicator, it still leaves much to be desired.
The strength of the housing market has for the most part always been a good indication of how healthy the economy has been. (Except for the artificial housing boom in the 1980's which occur ed when the Persians were forced to flee Iran after the Shah was overthrown, many of whom took refuge in the United States --offering two to three times the prices that homes in the certain areas of the Northeastern part of this country were selling for at the time).
This boom was short lived and created a new trend in which many people who thought that they would be able to buy a home and flip it for an enormous profit a year or two later, missed the window of opportunity in which to do so and got stuck with homes that they could not unload for what they paid for them. Making matters worse was that their monthly mortgage payments increased when their APR mortgage rates soared.
Financially strapped, many were forced to mail their keys back to the bank and abandon their homes.
This trend from the 1980's has now hit the State of California, and shows no signs of ending there. In fact this situation is only going to grow worse as 2008 approaches.
Anyone who has ever purchased a home will tell you that it is far more difficult (and of course better) to obtain a fixed rate mortgage if you are borrowing money to purchase one, than it is to get an adjustable rate mortgage which floats with whatever index the company doing the lending is basing that lending on. Once these adjustable rate mortgages (APR's) spiral out of control, those who agreed to them find themselves literally abandoning their homes and mailing their house keys back to the lenders.
It's kind of like purchasing a stock on margin and then getting a margin call that you can't cover.
This type of housing bust occurred in the 1980's on Long Island's South Shore and is now happening to many of California's middle class suburbs. A trend that will continue to occur over the next year nation wide.
Of course, the upper scale homes in California are now selling better than ever given that the wealthy always have access to money, while those who are working two jobs to pay for what would be meager mortgages to the rich, are unable to survive. However, I am referring to very expensive homes here. It is the super rich who are unaffected by these housing market busts, since they can afford to purchase homes with jaw dropping price tags, and simply buy when they feel like it, even though they could clearly afford to wait for a better bargain.
It is the well heeled, but not the super rich who still find themselves counting their pennies and waiting before they splurge on their new home. For this reason, even many homes that are worth upwards of four or five million dollars in the present day are languishing, with buyers believing that they will be able to obtain a better deal on them over the next year.
These buyers are correct.
The housing market in this country is about to take a hit like it has not seen in two decades.
This trend is indicative of what is happening across the United States as the richest one percent of this country continues obtaining greater wealth, while the rest its population is losing further ground each year, unable to support the ever increasing debt load that is being placed upon them.
The rich have never paid their fair share in taxes, and they are now paying less than ever, while you get stuck paying for what they should be paying for.
Does that sound fair to you? How many purchases would you have liked to have made this past year alone that you were unable to because of the money you pay in federal income tax? Quite a few I would suspect.
Ironically enough, if the Federal Reserve Bank and IRS (both operating illegally now) were shut down, the money that this would have saved those who recently lost their homes due to the increase in their APR mortgage rate, would have more than offset the additional dollars paid due to these increases. Instead, the privately held Federal Reserve Banking cartel (counterfeiter) gets richer, while many hard working American men and women end up homeless (or at least without the homes that they one day planned to own).
What is wrong with this country?
While books have been written on this subject, it's clear that the central bank is the main problem, since it has all but destroyed the purchasing power of the average American citizen, the result of printing currency that is based on nothing of intrinsic value. And this has led to the gradual erosion of the Federal Reserve Note.
So exactly how much can you buy with a dollar these days?
A quarter of a gallon of gasoline?
A pack of chewing gum?
It's frightening how little your money is worth these days.
What can you do about it?
Sign the petition to shut the Federal Reserve Bank down. It is gradually forcing you into a state of poverty.
The only people who don't mind if the Federal Reserve stays in business are the wealthy, since they pay very little in taxes (one of the reasons why you are paying so much). To illustrate this, one of the wealthiest areas in this country -- Beverly Hills, California -- continues to have homes that sell for tens of millions of dollars with some even selling in excess of one hundred million -- this while the number of middle income people who have had to walk away from their homes in the past year due to the increased point spread of their APR Mortgages, has tripled!
So I again implore you to sign this petition to shut the Federal Reserve Bank down. And please see Aaron Russo's America From Freedom To Fascism at the following Website:
Petition To Shut Down The Federal Reserve Bank -- Please Sign Here:
http://www.ipetitions.com/petition/AFTF_P_1/
See Aaron Russo's America From Freedom To Fascism On The Federal Reserve And IRS Fraud
Below:
http://tinyurl.com/22sfw3
posted by James F. Marino at 3:24 PM
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