Mortgage Rates in U.S. Decline to Record Lows With 30-Year Loan at 3.84%

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Editor’s Comment:

It appears as though Bloomberg has joined the media club tacit agreement to ignore housing and more particularly Investment Banking or relegate them to just another statistic. The possibilities of a deep, long recession created by the Banks using consumer debt are avoiđed and ignored regardless of the writer or projection based upon reliable indexes.

Why is it that Bloomberg News refuses to tell us the news? The facts are that median income has been flat for more than 30 years. The financial sector convinced the government to allow banks to replace income with consumer debt. The crescendo was reached in the housing market where the Case/Schiller index shows a flash spike in prices of homes while the values of homes remained constant. The culprit is always the same — the lure of lower payments with the result being the oppressive amount of debt burden that can no longer be avoided or ignored. The median consumer has neither the cash nor credit to buy.

Each year we hear predictions of a recovery in the housing market, or that green shoots are appearing. We congratulate ourselves on avoiding the abyss. But the predictions and the congratulations are either premature or they will forever be wrong.

The financial sector is allowed to play in our economy for only one reason— to provide capital to satisfy the needs of business for innovation, growth and operations. Instead, we find ourselves with bloated TBTF myths, the capital drained from our middle and lower classes that would be spent supporting an economy of production and service. That money has been acquired and maintained by the financal sector giants, notwithstanding the reports of layoffs.

From any perspective other than one driven by ideology one must admit that the economy has undergone a change in its foundation — and that these changes are ephemeral and cannot be sustained. With GDP now reliant on figures from the financial sector which for the longest time hovered around 16%, our “economy” would be 50% LESS without the financial sector reporting bloated revenues and profits just as they contributed to the false spike in prices of homes. Bloated incomes inflated the stampede of workers to Wall Street.

Investigative reporting shows that the tier 2 yield spread premium imposed by the investment bankers — taking huge amounts of investment capital and converting the capital into service “income” — forced a structure that could not work, was guaranteed not to work and which ultimately did fail with the TBTF banks reaping profits while the rest of the economy suffered.

The current economic structure is equally unsustainable with income and wealth inequality reaching disturbing levels. What happens when you wake up and realize that the real economy of production of goods and service is actually, according to your own figures, worth 1/3 less than what we are reporting as GDP. How will we explain increasing profits reported by the TBTF banks? where did that money come from? Is it real or is it just what we want to hear want to believe and are afraid to face?

3 Responses


    May 7, 2012

    May 7, 2012

    The nonsense and outright lies perpetrated by the banks just keeps getting more and more unbelieveable. This latest example is laughable out loud.

    Numerous homeowners around the United States have been sending us correspondence from Chase Home Finance (which merged into JPMorgan Chase some time ago) and attorneys representing Chase stating that “Chase is committed to helping homeowners remain in their homes”. These letters have been sent in connection with threatened foreclosure proceedings, and with information as to (purported) loan modification through HUD.

    The result is disturbingly the same: the “offer” from Chase is a loan “modification” where the new payment is larger than the monthly payment sought to be reduced by modification. As Chase has actual knowledge that the homeowner cannot even make the current monthly payment, Chase is obviously intentionally setting up the homeowner for a loan modification “offer” which Chase knows must be declined as economically impossible.

    To add insult to the injury, the Chase loan mod program is known as “Once and Done”, meaning that if a loan mod offer is rejected that Chase will not make any further loan modification efforts, and will commence foreclosure proceedings.

    Chase also has a record, as do other banks, of claiming that a trial mod payment was “not received timely” resulting in a default being declared when in fact the homeowner has proof that the payment was received timely if not before the due date. Again, more evidence of Chase’s intentional manufacturing of fraudulent defaults for the purpose of furthering fraudulent foreclosures.

    So there you have it: if you don’t agree to pay Chase more money which Chase knows up front that you cannot afford, there is no loan mod, and you proceed to foreclosure. Obviously this is Chase’s intended result, purposefully structured so that it can tell the Government that “well, we attempted to work with the homeowner, but the homeowner rejected our offer…”, knowing full well that the alleged “modification” was not made in good faith and knowing what the only consequence will be.

    More “good public relations” from Chase and Mr. Dimon.

  2. JPMorgan Chase Whistleblower: ‘Essentially Suicide’ To Stand Up To Bank

    ‘…All the accounts had “judgments” on them, meaning that Chase had already taken these cases to court, sued the customers involved for failing to make payments and won the lawsuits. Before the sale took place, Almonte was asked to check the amount owed and the court’s ruling in each case.

    After reviewing more than a third of the files, Almonte’s team reported back to her that nearly 60 percent contained some sort of major error, including discrepancies about the amount or whether the court had indeed ruled for the bank. Concerned, Almonte went up the chain of command, flagging the errors and encouraging management to halt the sale. Instead, the bank fired Almonte and completed the deal in December 2009. Chase declined to comment for this story, as did the Office of the Comptroller of the Currency, which is currently investigating the bank…’

    CA Complaint for Trespass, Extortion, Assault, Battery, False Imprisonment, Intentional Infliction of Emotional Distress, Conversion, Invasion of Privacy, and Violation of Unfair Business Practices.

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