What Housing Bubble? Liberals won't be Looking in their Closets!
By Dr. Phil Taverna
There has been a lot of talk or writing last week about the housing bubble. And that the so called mortgage fraud that was to be taken to the wood shed is another Obama fantasy that just ain't happening.
One writes about Holder in a NY Times article: " Mr. Holder, for example, announced in 2012 that prosecutors had charged 530 people over the previous year in cases related to mortgage fraud that had cost homeowners more than $1 billion."
The fact is the folks that owned homes in 2008 saw the value of their homes shrink by over 25%. Some call this the housing bubble bursting. But there was no evidence of any bubble ever bursting. No one was offering less for housing, in fact the banks intentionally lowered the amount they would pay for a mortgage!
I have written several times about this and this was not an economic event. It was the banks intentionally imploding the housing market. And the people to be strung up are the folks who forced or coaxed the banks to lower the value of homes. Screw the billion dollars that Holder is talking about. It was trillions of dollars that American home owners lost.
Owners sat by with mouths wide open in disbelief and saw their lifetime investments just about disappear into thin air. Since that mainly happened to white folks, I guess we can't call it inequality. But who ran off with all that money? Were the crimes committed by the crooks treasonous. It could be easy to argue that this intentional bubble bursting led to the recession that led to the election of liberal Obama: To allow him to micro-manage the American economy, healthcare and the global foreign policy. And 5 years later he gets a big fat "F" as his only begotten grade.
This is a simple problem to investigate. The number one issue is why did the banks change the appraisal rules? Just go back to 2008 and start with Chase Manhattan Bank. There was plenty of evidence that Chase was low balling the appraisals. This caused a lot of damage, someone should have to pay... This is America!
So what does that mean in plain American English? It was customary and the standard practice to examine neighborhood housing and take the values of the upper end of the spectrum. And then the mortgage allowed for that subject house would be related to these upper level housing values. This insured that most American investments were protected.
An example would be let's say the subject house was appraised at $130,000. There would have been about three houses that came in at about the same value with adjustments made for size, condition etc. Well in 2008 the rules were intentionally changed by the banks including Chase. Let me back track a little. The previous required appraisals were full boat appraisals. The appraisers had to do the whole work-up. Look inside the building. take measurements and pictures and document their findings.
So in 2008 with the same house appraised at and assessed at about $130,000, the banks go out and find low balling appraisers. In York, Pa they began to ostracize appraisers who did not go along! So instead of using the upper level houses for value, they start using low balled houses. Houses that may need rehab work, run down etc.
The beauty of this was they didn't even bother doing full work-ups for the appraisals, because the bank underwriters knew the houses were worth at least 75% of their previous value.
So they actually did drive by appraisals. And the banks were so kind that they would say take it or leave it. And that is after the American owner spent money on 2 appraisals.
It doesn't take a rocket scientist or an Eric Holder to see that if the banks intentionally lowered the appraisal values for the homes in 2008, it would drive down all the selling prices for homes in the future. The reason being is that all houses thanks to the shenanigans of the crooked banks drove down the value of the American homes by at least 25% in 2008. There is plenty of proof of this. My question is does this amount to treason!
Now this creates a snowball effect because anyone looking for a mortgage or a refinance from 2008 would take a cut of 25%. Since this caused folks to walk away from their homes and give it to the banks, this created a continued lowering of the value of the homes. And in many cases the banks did not secure the homes so fine upstanding citizens went in and ripped out the plumbing and copper to salvage for scrap. So now the same house in 2008 takes a hit for 25%. Then the neighborhood goes down due to vandalism and the banks are in a great position to tell you the house you want is not worth what you want to pay for it. And the sellers can't sell the houses at the 2008 prices and need to lower the prices to sell the homes. This adds to the losses already created in 2008. Jerks called it a housing bubble, but as long as the banks were willing to give the mortgage for the inflated price then the so called housing bubble would have continued and there would not have been a recession. But the Democrats needed a recession to win the Big Election.
So Mr. Holder that would be real easy to check out. And just follow the leader. Ask Chase why they changed the rules. And what underwriter(s) made them change the rules. And why it was all about the bail out that allowed all the larger banks to recoup their loses and buy up the smaller banks.
And last but not least. The banks and their industries were selling derivatives connected to the value of the mortgages. When the recession hit... or the bubble was popped by the banks: Who were found in lucrative short positions in these derivatives? And why so?
Are these the same billionaires today funneling millions to the Democrats and their PACs? That would be fun to know.
So like Rush has said for years all Mr. Holder has to do is follow the money. Did politicians like Frank and Dodd have anything to do with it? Two processes needed to be looked at. In or around 2008 who changed the rules and made it mandatory to start low balling appraisals. And second any derivatives that were based on the mortgages and those folks who went short at this time must have had some connections. Up until 2008 most derivatives made money for people taking up long positions. So who made billions in 2008 and why did they switch to short positions? If that is not insider trading then what is!
And these newly crowned billionaires are required to pay back the political party PAC's that helped to make them so rich. The money would be so easy to follow. Why is Mr. Holder gun shy. Could it be that most of these citizens contribute to the liberal Democratic Party at the expense of the pain and suffering that all American home owners experienced during the biggest housing sham in American history. All we need is some tar and some feathers.
After all hurting the housing economy is like hurting each and every American who owns property and the industries that support these properties. It is not fraud, it is highway robbery!
Look at it this way. In the past and future elections the liberal Democrats are spending the money they made by crashing the value of your home. In the Liberal mind it is a good thing if it is for a good cause like ObamaCare. What do you think and how does that make you feel?