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The foreclosure crisis in the United States is not showing any signs of slowing down. Almost no regions and cities of the country are immune from it. The real estate debacle is affecting every region especially Florida, Nevada, Arizona and Michigan. Detroit and Las Vegas can be considered the two metropolitan areas which have been hit the hardest. In the “Motor City”, which used to be the crown jewel of American manufacturing for a century, one can buy a decent house for $25,000. Vast areas of Detroit look like a futuristic  no-mans land: an accurate depiction of capitalism’s advanced decay.

In Las Vegas, “for sale” signs are everywhere with an overwhelming majority of the properties being bank owned. Properties which used to sell for $350,000 before the 2008 crash are now selling for $150,000. In Phoenix Arizona, the situation is even worse. Investors with cash, either foreign or domestic, are taking advantage of the bargains. Canadians and Germans are buying condos in Florida, attracted by the climatic appeal. An American investor explained to me his overall strategy. He wouldn’t touch any properties in Detroit, which he views as “doomed”, but he is currently buying houses in Nevada and Florida. His plan is fool proof because of its simplicity. He buys foreclosed properties for cash, then does a minimum of repairs, as needed, and just rents them. He is gambling that the market will eventually pick-up and he will then sell the properties for a substantial profit.

There are indeed plenty of opportunities for the investor sharks taking advantage of the crisis. The name of the game is cash readily available. This is the way the real estate market is getting “cleaned up”. But overall the big beneficiary of all this are still the banks. The foreclosure scam, it should be called as such, had three different phases. In each one of them, the banks made a remarkable profit.

Phase One: Inflate the Value of the Housing Market

Between 1998 and 2008, the “value” of real estate in America was going through the roof. The inflation was created by the banks. At the time as we remember, “everyone with a pulse” could get a loan. Stated income was perfectly acceptable, as well as almost “no money down” loans. It was a gold rush, and a lot of people got conned into the banks’ game. Appraisers, working for the banks, would over estimate the value of properties. Independent mortgage brokers also saw an opportunity to make a lot of money in this process. Eventually all the loans, with many shaky ones, will get re-bundled in what was supposed to be AAA rating investment.

Phase Two: Burst the Bubble and Create a Panic in Order to Get Money from the Taxpayers

This was of course the bank bailout during the fall of 2008, during the transition between the Bush administration and the Obama administration. In the process, banks scammed the US taxpayers of more than 700 billion. They created a panic, on the premise that the “sky was going to fall” on all of us if they didn’t get this cash flow. Banks took advantage of this windfall by going on a shopping spree. Wells Fargo bought Wachovia, while Chase purchased Washington Mutual.

Phase Three: Foreclose on Homeowners and Sale for Cash

This is the phase which we are still in. Despite countless promises, the Obama administration is still doing nothing to stop this phase. People bought overvalued- by the banks- properties and are now “owning” a piece of real estate that is worth less than the loan. They have two options: either a short sale and they can walk away with nothing or, if they don’t want to let go of their properties, they can face the slow and painful process of foreclosure. Regardless, in the medium terms, they will get kicked out of their houses. Anyone with any knowledge about gambling is fully aware that the “house always wins”. This applies with the banks, the dice were loaded from the get go, and the banks still have the upper hand.

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9 Responses

  1. I read some of this stuff, but it makes no sense to me.Nora C is a perfect example. She states “People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world.”

    The only problem I have with that is why then was there the big push for everyone to own a home? I get the greed and stuff, but people who have a home and lose it will miss it. People who have a home and lose it because of a perception of fraud will be fired up. I can’t imagine any Elitist wanting to play with that kind of fire. Now perhaps the goal was to topple the system so a new one could be born. The problem is that many people don’t want America to change, but for the Country to get back to its fundamental roots as spelled out in the Constitution…a dangerous thing for an Elitist.

  2. According to Daniel Estulin, author of The True Story of The Bilderberg Group, Hillary is both a member of Bilderberg and a militant Zionist. Let’s not forget that the list of names in BB group overlap to both the Trilateral Commision and the Council on Foreign Relations.

    It’s a well established fact that both political parties are owned lock, stock and barrel by the elites, and it’s of little consequence who we are silly enough to vote for; they are all playing on the same team.

    They are experts at planking their campaign platforms with cleverly written rhetoric, designed to make us think they will do our bidding if elected and share the interests of the common man, while secretly pledging alliegance to the powerful financial interests that have wrecked this country. More zionist puppets, in short.

    Jimmy Carter is a classic example of how easily corrupted people are politically sold to the American public to become leaders in the elitest attack on liberty, freedom and justice. Rockefeller bought and paid for Carter’s election because then Govenor Carter had opened up trade offices in Brussels and Tokyo, for Georgia. A peanut farmer here in South Georgia, Carter projected an image of a conservative southern governor, but in fact favored extreme left wing agendas. Corruptability made him vulnerable, and he even connived with his personal banker, Bert Lance, to funnel money into his peanut biz., that came from depositors funds, in order to get matching funds from the government.

    As Enraged said in one post, it’s not an “economic crisis” we are enduring, it is a “financial crime”, the manufactured destruction of our economy to reduce us to poverty so that we are “more tractable”, as is evidenced by a quote from JP Morgan in 1913:

    “Capital must protect itself in every way…Debts must be collected and loans and mortgages foreclosed as soon as possilble. When through a process of law the common people have lost their homes, they will
    be more tractable and more easily governed by the strong arm of the law applied by the central power of leading fananciers. People without homes will not quarrel with their leaders. This is well known among
    our principle men now engaged in forming an imperialism of capitalism to govern the world. by dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common heard.” (end quote)

    We need to think outside the two-party parody they put on for us, get our facts straight from trusted sources, not Focks news.

  3. Democrates and Republicans just play good cop bad cop and are all in this corruption together. We need to throw them all out and put a tea party in place, and none of the good ol boys in their place.

  4. These investors are purchasing clouded titles and stolen homes, we can only hope the Bevilaqua V. Rodriguez case puts the greedy investors in their place. And the homeowners back in their homes. for the private people whom have purchased them in good faith, I feel sympathy for, their eyes have not been open either. I have the most sympathy for the homeowners whom have been tossed into the streets due to the economic crime and no fault of their own and for every jobless person and familie suffering right now, due to no fault of their ow, that deserve relief from these criminals. There has to be relief around the corner with so much proof out there, that this was willful, wrongdoeing, with unclean hands, intentional harm and stealth of wealth by torfeasor’s. It is beyond unclean hands it is outrageous evil doers.

  5. Nothing will change unless and until we stop calling them “loans”.

    The WHOLE TRUTH needs to be shoved back in their faces.

    They continue to call them “loans” and “mortgages”—when ONLY collection rights were transferred/assigned at closing…among other things.

    How do we get the WHOLE TRUTH in the media?

  6. It’s not going to get “cleaned up”. Not without serious legal intervention. prosecutions and regulations.

    This is simply the opening of another can of worms in the biggest financial scandal of the entire human history.

  7. “This is the way the real estate market is getting “cleaned up”.




  8. Remember, ANY debt restructure by main street is viewed as a default by the very people that created the economic malaise that has caused the need to restructure debt.

    Main street is being labeled irresponsible by the very people who should be in jail.

    In my opinion, Until justifiable debt restructure is made into law, nothing will “change” for main street.

  9. Article quote…Despite countless promises, the Obama administration is still doing nothing to stop this phase….

    Let us not forget, THERE WAS A REASON that Billionaire George Soros backed Barack Obama over Hillary Clinton. Obama was the sock puppet that Soros wanted, Hillary Clinton was not.

    It’s not too late, if you want to save your home, deluge the democratic party that you want Hillary Clinton in 2012, not Barack Obama. Otherwise don’t go crying if EITHER Obama or a Republican is elected in 2012, you will most likely lose either way.

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