Beware the False Idol

‘The housing market is improving…the housing market is improving’

Sadly, this is the banshee wail of the undereducated. Sadly, we have heard this non-fact based mantra going back to early 2009. Though accurately, on a broad-based view of the housing market, it remains mostly false. (this is not to say that there are some, but few pockets and areas of localized markets that are active with legitimate owner-occupied buying)

In what appears to be signs of improvement are in reality, just propped up indexes and figures. The Fed has financed nearly 3 trillion in bad loans and they continue to absorb the cost of defaults in nearly all of the FHA approved mortgages made today. (Read: Tax Payer money) Also, residential delinquencies are on the rise again, up 10.2% in Q4.

Approximately 80% of current delinquent residential loans were originated before 2008. In fact,
pre 2008 loans account for about 53% of all mortgage loans.

Then, there is the GSE’s one of the greatest scams are federal government had enacted- (guaranteeing private loans with public money) continues to dig a deeper and massive hole of debt- read: tax payer money to the tune of 190 Billion and counting.

A bit of historical data reveals that starts of multifamily housing stands at 15% below mean trends. Construction of single family residences is approximately 45%  below the long-term trend and demand for new homes is at 46% below the norm.

Additionally, there are approximately 14 million mortgages underwater. Mortgage net-equity has decreased in 4 1/2 years by a staggering 3.7 Trillion dollars.

There is a  massive amount of non-performing inventory sitting on the balance sheets of banks (in which the government and the Fed have ‘requested’ the banks not to release…) AKA, Mortgage-Stuffing, which has been ramping up in the past two years. There may be upwards of 5 to 7 million distressed assets not being disclosed by the banks. (part of the fraud-closure debacle)

Not too mention, the one trillion dollars of student debt, 16.7 trillion in national debt, 22% total under/unemployment, while the mean duration of unemployment is at 35.3 Weeks. (down slightly from a peak of 40.2, but up from last years average of 33 weeks)

The U.S. now has 48 million households on SNAP (UP by 17 million since 2008) all while housing subsidies have increased by a whopping 48%. Then there are salary and wages- (when adjusted for Real Inflation, are actually negative compared to the core rate) PCE, is flat and personal income is down -3.4%, the most in 20 years.

BUT! The big but…somehow, the average tax paying American has suddenly come up with new found disposal income to buy houses across the nation…amazing! Sadly, it is simply untrue. While there has been some activity in buying, it is mostly in the form of the governments ‘Central-Planning’ Reo-to-Rent programs, a flood of foreign buyers and phantom new start contracts.

And those “SA” Seasonally Adjusted prices you see? Fabricated. When all is said and done and you parse out the ‘noise’ prices are not truly appreciating and in fact in many states are declining once again.

“But the nar said so” Sadly, the nar (one of the largest lobbying groups in Washington) are nothing more than enablers of burden and debt to the tax payers. The nar are simply a fraud.

Question:
What is the primary job of a real estate person? If you think, buy and sell houses, sadly, you would be mistaken. The main function of any real estate firm and agent, is to act as a buffer between a buyer/seller and factual, relevant information. The industry itself is nothing more than a marketing-ministry of propaganda.

The agent acts completely in his or her own self-interest, despite the rhetoric they continually churn out. Upton Sinclair had a great quote- which explains the conflict that a real estate person inherently creates.  “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

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Collusion between Government and Corporate Banks

By DataAnalytics - (Video via Bill Moyers Show)

“There’s no clearer example of the collusion between government
and finance than the deal that created Citigroup in the first place.”


Bill Moyers talks with former Citigroup Chairman John Reed to explore
how the mid-90’s merger of Citicorp and Travelers Group – and a friendly
Presidential pen (one Bill Clinton), brought down the Glass-Steagall Act.

While there were many people of power and influence involved, there
were three main players who were key in enabling the death of Glass-Steagall
were Fed Chairman, Alan Greenspan, Republican Senator, Phil Gramm
and Democratic Secretary of the Treasury, Robert Rubin.
(who was also former co-chair of Goldman Sachs)

All were heavily ‘pressed’ (and probably compensated) by Sandy Weill, head of
the investment bank and insurance company Travelers Group.
(Travelers merged with Citibank to form Citigroup)

In the prior weeks leading up to the repeal of Glass-Steagall, Rubin resigned his
government post to join Citigroup’s board, the very financial giant made possible
by the subsequent Glass-Steagall Act’s elimination.

While the darling of the media and the left-wing, former president Bill Clinton,
willingly and knowingly signed the bill eliminating Glass-Steagall. On the
April 1998 night before the signing, Weill stated:
“The President (Clinton) was in fact told last evening about what was going to happen.”

So, those who think or refuse to believe that Clinton was unaware or had no part
in the what was to be the creation of “Too Big to Fail” are dead wrong or just plain ignorant.

Among the legislation’s many detractors, was Senator, Byron Dorgan.
“We are with this piece of legislation moving towards greater risk.
We are almost certainly moving towards substantial new concentration
and mergers in the financial services industry, that is almost certainly not
in the interest of consumers.”

Senator Dorgan stated that in ten years we will look back and regret what was
enacted and sure enough in 2008, exactly ten years later, he was dead-on right.

What is without a doubt most apparent, is the full cooperation and collusion between
major players in BOTH political parties. As we have been stating for years, the majority of Republicans and Democrats are corrupt, deceitful and only looking to advance their
careers and fatten their wallets on the backs of the American tax paying public.
It’s time to start voting for alternative parties, period.

Read the full transcript here

Consumer Inflation (Food & Fuel)

By DataAnalytics

A brief report on the latest purported inflation figures.

As if under some giant slumber, the ‘public’ was given the standard
rhetorical tripe on monthly inflation figures today from the BLS.

Amazingly, CPI-U barley rose a half a percent, in fact it ‘printed’ at
0.4%! Now considering more than half the population are most likely
‘asleep at the wheel’ this report deserves a double-take, even from the
most inept, reality-TV, stupor-induced American.

If you buy groceries and drive a vehicle, you must realize
(at least we hope so) that it is costing you much, much more to
feed you and your family and fill up the old gas tank.

How much more? Well for gasoline, the national average per gallon
is now at $3.83, up from $3.54 a year ago. That’s an 8.1% Rise.
How about from last month? Prices from February are up a hefty 12%.
But yet, the BLS proclaims that the ‘official’ measure of inflation has
only risen 0.4%. How can that be? Simple, one word. Deception.

gas price chart

How about food prices? Well let’s take a closer look at the cost of food
commodities from January 2012 back to January 2011. Meat, Poultry,
Fish and eggs are up on a weighted basis of 7.21% from a year ago.
Dairy and related dairy (cheeses, yogurts, etc) have increased 9% since
last year, while Cereal and Bakery products are up 5.25% from January ’11.

cereal meat eggs

Can’t live without that morning cup of home brewed Coffee? (me neither)
Well, roasted coffee prices have soared a whopping 16.85% from January 2011.
The only ‘good’ news, is that Fruits and Vegetables have actually
dropped about a half a percent, 06% to be exact.

coffee & veg

So while the government and B-B-B- Benny and Fed tout virtually no
to little inflation, there are some of us, who understand that this simply
is NOT true. The government is playing a game, a dangerous game at that.
Manipulating, doctoring and fabricating numbers and figures in order to
‘show’ that Central Bank intervention is working. (which we know is a failure)

The BLS has truly become a Ministry of Propaganda for the government.
No longer an agency of credibility and non-partisan reporting. Engaged
in a campaign of utter and sheer deceit on jobs data and inflation.
Making a mockery of the Statistical arm of academics and public trust.

Crony Capitalism or Corporatism by any other name…

Via Bill Moyers


Moyers & Company
explores the tight connection between Wall Street
and the White House with David Stockman, former budget director
for President Reagan.

Stockman speaks candidly with Moyers about how money dominates
politics, distorting free markets and endangering democracy.
“As a result,” Stockman says, “we have neither capitalism nor democracy.
We have crony capitalism.” Or Corporatism.

 

The Engineered Market and the Doctored Unemployment Rate

Friday, March 2nd, 2012

Short interview with Mark Leibovit of VRGoldletter.com, who speaks with
NBR’s Tom Hudson about the Fed’s manipulations, the engineered stock
market and the Doctored Unemployment Rate.

Video segment is from NBR with Tom Hudson. Full Transcript.

 

 

” My sense is not as optimistic. I don’t believe the figures
that we’ve been getting from the government.”

“There’s a lot of talk about the employment numbers, we know those
have been doctored up…”