During the 1970's America experienced a huge housing bubble.Unlike the mortgage derivative bubble of 2006 the 1970's bubble was based upon real needs of the emerging baby boomer generation.
Home values increased dramatically in the 70's and home ownership was considered a wise investment. The investment was based entirely upon need. The laws of supply and demand of free market capitalism working.
The purchase of a new home was a contract to purchase from the owner/builder and the search for a mortgage lender to provide the capital. Once closing occurred the business was now between the Bank and your timely monthly payments. Wall Street and Congress were not involved in your purchase. Down payment on your first home was always a problem. Lenders required 20% down with a stunning credit report. Income tax disclosure and job history for 3 years also included. Your monthly payment was firmly held to 25% of income. Your Bank owned your mortgage and it was understood the Bank or mortgage was not going to be sold to another bank. Banks in my State could only operate in a single county. Therefore the possibility of knowing you Banker was probable. There were no State Banks and Country wide banks were prohibited by 1930's Federal Banking Regulations. These laws were the result of unscrupulous Bankers of the 1920's. Ronald Reagan was the President who pushed for deregulation and a staunch union buster. In the 1980's we began to see Glendale Federal of California with offices in Florida. This was the beginning of 2big2fail.
There were Government 5% down FHA programs and VA loans that carried higher interest but offered less down payment. In addition if you were poor the government subsidized low income earners with cheap below market interest rates known as 235 HUD programs.
If you were poor enough you could buy a home paying a mere 3% interest rate. This could allow people of lower incomes to access the bonanza of home ownership at the cost of others. Extremely unfair to those who crested just above the established income levels.
I was one of these people who did not qualify for government assistance and relied on my backbone to provide the necessary down payments required. Even though the actual income difference was marginal. Like affirmative action in education, this program discriminated based on wages earned and racial bias. A person making less income could enjoy a higher standard of living than those who got an education, played by the rules and often the difference could be pennies a year in income separation. As you can see, buying a home in 1970 and financing was far different than today.
Many home builders today are traded on the New York Stock exchange. I'm not sure why anyone would buy a house from these guys. What you really need is a qualified carpenter to build your home and a honest lender who will provide capital. More houses and better houses have been built by carpenters than all the Titans of Wall Street.
The purchase of your home as the American Dream has become the Nightmare on Greed Street. In on the action are local government who assess property taxes based on the street value of your home, not what you paid in the sale. These increase in a falsely stimulated market is now causing the collapse of State and Municipal Budgets across America. If property taxes were assessed on sale price, governments would be much better shape fiscally. Many older people have been forced to sell off homes with no mortgage because they could no longer pay the falsely stimulated assessed home values taxes inflated in New York Derivative trades.
As we entered the 1980's we suffered a collapse in the housing markets. The collapse was due to a lack of money caused by a severe depression and 10% unemployment that forced interest rate to hit 22%. Putting your home on your credit card was impossible.
People turned away from home investments and bought gold and silver from a lack of faith in US Currency. People were afraid of money and banks. Along came the Hunt Brothers and with huge oil fortunes gained control of the Silver Markets worldwide. Driving the value from $11 dollars and ounce to fifty dollars an ounce in two years. The price of Silver corrected overnight in January, 1980 as the price fell from $50 dollars to under $11 dollars an ounce. The little guy got stung playing in a rich mans domain. The Hunt Brothers could have done the same in Gold markets accept they didn't have the enormous capital to control Gold.
Along came two blind guys in Ft Lauderdale to destroy the Gold Markets. Known as the International Gold Bullion Exchange. The two legally blind owners were William and James Alderdice. These clowns with an extensive rap sheet and several failed business ventures began selling gold necklaces door to door in Ft Lauderdale's wealthiest neighborhoods. Eventually openings a swank jewelry store complete with Bubbly Champagne and Classical Music for atmosphere.
The deal they offered in Gold, Silver and Platinum was the buyer must wait 12 to 15 weeks after payments to receive their precious metals. During that time it was hoped the price would drop and the difference was in their pockets. They did in fact make money until Gold and Silver began to climb and the difference became a loss. The two hoodlums managed to open offices in Texas and California with well over a thousand employees when the vault was opened and exposed wooden bars coated in gold to fool investors into the Fool's Gold.
William died in 1985 from stab wounds and James went on and graduated with honors as valedictorian of Federal Prison with a degree in Theocracy. James became a Minister of Faith in a Arizona Church after five years of prison repentance. Most Graduates of Federal Prison usually emerge outside as Construction Workers, Minsters or go on to Post Graduate Degrees incarcerated for life.
As we left the 1980's for the roaring 1990's the sophistication level increased for the common thieves. The Infamous G H Bush 41 Silverado Savings Bailout was the white collar crime of that century. The actions of Neal Bush son of George led the words "Read My Lips" into history. The cost to the taxpayers was a whopping $ 180 billion dollar heist. The day's of the infamous John Dillinger's V/8 Fords and Browning BAR had faded into the darkness of sneaky con men like the Alderdices who stole from individuals foregoing banks.
The crimes of the nineties were crimes of Enron and World Com. The cover is the education levels needed to control the energy grid and phone networks without detection. Americans were led to slaughter again and again by white collar thieves.
In the eighties the 401-k program was promoted by the IRS. 401-K is a section of the US Tax Code. This allowed the taxpayer to contribute money into his retirement accounts at work, tax free. Free always is synonymous with bend over and grab your ankles. Here you have the makings for the greatest theft of mankind. The 2008 Financial Holocaust that will destroy our economy in a super nova of 2big2fail. The greatest theft of the 20th century and 21st century occured with a Republican Bush as President!!
You have Joe Average putting tax free money into a retirement account. Sounds great smells bad. Looking closer you find that the governments interest in your retirement security will be under the control of your employer and the watchful eye of the IRS. Why the government deems you irresponsible to control your health care and retirement is because of the Golden Rule. The ones with the Gold, Rule. The never ending flow of 401-K mom and pops nickles and dimes under the control of Banking, The Forth Covert branch of government and Congress is what caused the 2008 Financial Meltdown.
Housing Mortgage Derivatives and 2big2fail Investment Banking were merely the vehicle to the crime and the bonuses afterwards. We have done nothing to prevent these thieves from doing it again in a different car. Important to note that none of this could have happened a generation ago. Once upon a time we had daring criminal like Dillinger who robbed the banks we hated so much. Crime has been homogenized in my lifetime through a collegiate filter of privilege. There is no logical reason why a banker should be rich. The only way a Banker gets rich is to steal. The only way to steal is buy a politician who will make stealing legal.
By placing the Employer and Government between you and any form of commerce makes you subservient to the Oligarchy System working within the fragile framework of "We The People"and gives them dominion over your wealth.
I'm certain these employer based programs that constitute 2/3 of our annual budget violates the Preamble of the US Constitution. Ironically, the first sentence and paragraph. Violate the Preamble and the rest of the document is useless. The Preamble is the doctrine. The rest of the US Constitution describes a handbook of how to establish the doctrine.
We've witnessed several ways to steal over the years. Without question white collar crime is the method of choice. Recently we elected a new President Obama who campaigned against the wild spending of Bush.
Obama led us to spend our way out of debt by inflating the deficit further with the $860 billion Stimulus and Recovery Act In Addition to $350 billion in leftover TARP money. Then we piled on Employer Based Obama Care as Americans slid backwards into increased poverty.
Now we have both parties claiming we need to cut spending by increasing the Debt Ceiling (huh) The party that brought us to financial collapse and Obama agree we need to give them more money. I think we need to eliminate Medicare, Medicaid, Obama Care and Social Security. Stop all employer based deductions and tell the IRS to get off their asses and collect taxes.
At the same time lets do away with OSHA. OSHA is nothing more than a playground for Bureaucrats, Attorneys, and Doctors to enrich themselves. Eliminate Mandatory Insurances of any kind and hold people responsible in courts. Putting people in jail for driving without insurance is a crime in itself. Jail or penalty for failing to buy anything is the grounds for civil wars. Making children acquire Social Surveillance Numbers and wear plastic hats to ride a bike as well as seat belts and helmets for adults is a Nanny State. What we demand is our freedom returned. Once we have our freedom back we will create our own jobs.
Did I mention Gold is $1500.00 an once. The Gnomes of the US Treasury want you to believe the price of gold fluctuates up or down. Gold is the only constant worldwide. The purchase power has not changed in 10.000 years. Currency rarely last 200 years. The illusion that the dollar is constant and gold fluctuates is pure Harvard Nonsense. Ok to buy Gold but, don't take any wooden bars from Alderdice
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