T  H  E     B  A  L  D     E  A  G  L  E     J  O  U  R  N  A  L     September 2008        Copyright (c) TFG 1993-2008       Editor: C. Franklyn II   

SHOULD THE REAL ESTATE INDUSTRY BE ALLOWED TO HIDE FROM ITS SHADY ROLE IN THIS NATION'S FINANCIAL MELTDOWN?

      -- the dangers of the Variable Rate Mortgage were well-known!

      -- Real Estate brokers  were first responder crooks! 

The first person that most home buyers see is a Real Estate Broker or a Sales Associate. Okay? You have bought a house and you know that the entire routine is dominated by working with  a real estate person. They are the folks who show the available homes, fill out forms once you get serious about buying! 

My wife and I were in that business for twelve years. It is a difficult business for many reasons, hence, most Real Estate offices operate a "dog-eat-dog" marketing enterprise that provides many opportunities to lie to the potential buyer! One thing about such work that challenges an Associate is how to be honest with buyers yet still sell some houses. Young and uneducated buyers are very easily misled. Minority folks are very vulnerable to unethical selling practices. There are many tricks used by the Brokers and their sales staff.

In the 1970s-80s, the Variable Rate Mortgage was introduced. It was attractive and worked for some people, but it was predatory in the hands of Associates who did not care whether they were tying down  buyers whose total income and employment history looked bad or inadequate. My wife refused to push the Variable Rate because she believed it was potentially not honest and would entrap a new owner. Her broker punished her in a number of ways for being considerate of her clients! Real Estate is one of the most crooked businesses in this country -- a fact that is well-known!

Real Estate people were the implementers of the Sub-Prime Mortgage Scam once Bill Clinton's FANNIE MAE began to accept high risk mortgages!

SUB-PRIME FIASCO: 1993

Bill Clinton was the first Baby Boomer to occupy The White House. Anxious to prove what a genius he and his Rhodes Scholar buddies were, they wanted to do big things for their Minority voters. They wanted to put every family in their own single-family home even if they were not qualified as a good risk! That is what every good Socialist wants to do so they will be re-elected!

Whilst the ambition was worthy, the new Administration appointed a new CEO for FANNIE MAE, an institution that was created following the home foreclosures during The Great Depression. In the late 1960s, FANNIE MAE had been changed from a government agency to a public ownership that bought mortgages from U.S. banks.  It then sold them to the Commercial banks on Wall Street. Wall Street, in turn, bundled those mortgages and sold them to investors all over the world! The process of moving mortgage paper from one ownership to another was a hypocritical solution to circumventing bank laws that limited the banks total liability. In the process of creating FANNIE MAE and FREDDIE MAC, the two agencies, called Government Secured Enterprise (GSEs) became a collecting place for billions of dollars worth of both good and bad loans -- mostly BAD as we have now learned!

Once Clinton and his new CEO, Jim A. Johnson, induced the Democratic Congress to relax regulations so more and more low income people could qualify for loans, the dirty deed was underway! In addition to eliminating a minimum down payment, an interest rate below the Federal Reserve's Prime Rate was applied beginning as low as 1.5%, increasing as the FED's Prime Rate would rise.

Real Estate sales people knew many local folks who wanted a home but could not qualify for a loan. But once Boomer Clinton appeared, homes were no longer sold in a responsible manner. A gigantic giveaway followed which exploded the Housing Industry with an unprecedented BOOM in the Equity Markets that FED Chief Alan Greenspan described as "irrational exuberance". Treasury Secretary, Bob Rubin a NYC investment banker was deeply involved with these manipulations. Even when Gingrich and the Republicans took control of the House in 1994, no effort was made to mitigate the unrealistic risk-taking in the Housing and Mortgage industry! Politicians love a "hot" market because anything that creates Prosperity rubs off on them!

The " irrational exuberance" began by the Real Estate Industry applying the new qualifications by transferring millions of homes to people they knew could NOT pay off their mortgages! After all, FANNIE MAE, some said, was created to guarantee such loans, therefore everything was copacetic!  Throughout the Clinton Administration and into the Bush Administration this extremely liberal home buying practice continued while Greenspan kept the Prime Rate at a 50 year low! The Real Estate Industry made millions during this period even though RE executives knew the good times would soon end. The Bush Administration, following a policy of letting the Markets free to self-adjust did nothing to address the coming disaster. If the Prime Rate began to rise, the whole foul scheme would  cause foreclosures and the scam would become a national scandal.

Everyone in Washington knew judgment day was near when Fed Chief Greenspan announced he would retire in 2006. At age 82, he was the longest serving Chairman of the Federal Reserve (18 years) but he had dominated the thinking in Washington on the American Economy for nearly forty years! When he left the FED, it was a signal to all the insiders, that the accumulated liability posed by millions of worthless mortgages could no longer be hidden! By that time, the bad paper was spread far and wide, even to other countries!

CLOSING

It is remarkable how quietly everyone in Washington permitted the Clinton-Johnson-Greenspan's conspiracy at FANNIE MAE and throughout the Housing Industry to continue! It is even more remarkable how the Real Estate Brokers have escaped any investigation for their unethical practices! Just as all those who made their living off the fees received in selling mortgages, not one person in the commercial banks has been required to return their ill-gotten commissions! Those who had set up the American People to certain bankruptcy, have not been publicly criticized or ridiculed by the MEDIA! Why?

What I see is the ultimate arrival and installation of a HOLD HARMLESS SYSTEM OF INJUSTICE AGAINST THE AMERICAN CITIZENS. FURTHERMORE, I SEE NO EFFORT TO ASSIGN RESPONSIBILITY! BUT, THE WORST I SEE, IS THAT THERE IS NO EFFORT TO ASSURE THAT ORDINARY FOLKS LIKE SENIORS LIVING ON MEAGER FIXED INCOMES WILL BE PROTECTED FROM LOSING THEIR IRAs, etc! As we have been pointing out for fifteen years here, POLITICIANS AND POLITICS HAVE BECOME SO DEEPLY INVOLVED IN EVERY ASPECT OF OUR LIVES THAT WE HAVE NO IDEA HOW VULNERABLE WE ARE TO BEING WIPED-OUT BY THE CAREER POLITICIANS INSIDE THE BELTWAY! ALL THESE PROBLEMS BEGAN WITH POLITICIANS AND THEIR IDEOLOGIES THAT SEEK TO TRANSFER WEALTH FROM THE WORKING PEOPLE TO THE POOR AND VULNERABLE, MANY WHO ARE FREELOADERS AND GOOF-OFFS FROM THE DAY THEY ENTER FIRST GRADE! 

Why has Wall Street received so much attention in these recent Bailouts? The answer should be obvious! Wall Street which is a huge Roulette Wheel owned and operated by the Jews has all but taken over the Government! What has now happened looks like the Federal government has taken over Wall Street! What really is happening is the camel has finally crawled all the way into the tent!

Put another way, the Financial Industry has been nationalized by Uncle Sam! We are within a camels whisker of being a Socialist country! Large blocks of American financial operations will be sold to foreign entrepreneurs who are the more disciplined and more conservative managers of money!

By electing incompetent people who are ignorant of sound business operations, you -- the VOTERS -- have created this nightmare! In the on-going '08 Election, YOU rejected a Republican candidate, with a proven professional background, who understands Business and Finance, choosing instead a Washington Insider who is intellectually unprepared to be President. On the other side, the Democratic nominees are equally unsuited to bring to the Presidential job the knowledge to save this nation from complete domination by AIPAC and pro-Israel factions which includes Wall Street, in particular!

Does no one see this picture as I do? The Political Jew -- the Zionists -- are at the bottom of every major event that threatens this Republic! They own the Mass MEDIA which means that influence every thought and idea that enters our Minds! Doesn't that worry you, just a little bit? We are at the edge of a precipice! Open your eyes, your ears and your mouths!

Jayson Quigham  Ph.D.

Sept. 22, 2008