I have seen this discussed or written about in many places and not just the MSM as part of some tin foil hat conspiracy theory. The honest ones tell you to go talk to a lawyer and see what your rights are. If banks are willing to write loans on inflated property values then they own the risk too.
If people are trying to get “out of” their underwater loans, they are ending a contract that had their house up as collateral in the first place. If the banks were irresponsible enough to loan money to people for MILLION DOLLAR houses, then the banks should eat it ... and fail. Why are the banks being propped up? Certainly more competent people will rush in and take over.
And if they do it through a "private" surrogate -- you know, some big fund or IB -- it still counts.
Is it any coincidence that the Gumm-in-it now controls 90 percent of private housing mortgages? My prediction, the minute the economy collapses (or the Reichstag Event occurs) they will call in all outstanding mortgages, and then the houses we live in will also become the property of the Regime. Then we all will become slaves.
Is it any coincidence that the Gumm-in-it now controls 90 percent of private housing mortgages? My prediction, the minute the economy collapses (or the Reichstag Event occurs) they will call in all outstanding mortgages, and then the houses we live in will also become the property of the Regime. Then we all will become slaves.
I am not surprised by this, since it has long been obvious.
These “million dollar homes”, probably had an actual cost to the builder of perhaps $300k. With a $700k markup. This is just the high end of what is seen in the rest of the housing market.
People who bought homes in the early 1960s have had their homes increase in price by literally 10 times. Back then, a home that cost $100k would theoretically be “worth” $1m today.
But that is all illusion. Back then, that same home would have cost the home builder perhaps $95k to build. He would earn $5k.
It’s interesting that the total rate of inflation in the US economy from 1960 to today is something like 650%. In real terms, if something cost $1 in 1960, it costs $7.50 today.
So the real value of a $100k home in 1960, with ordinary inflation, should be about $750k today. So why does it have a price tag of $1m? Simple, because of speculation.
In the 1960s, if a bank was to give you a loan on your owned house, they would not assess its value at $100k, but the $95k that the house cost the builder to build. But at some point, the banks decided to loan and mortgage, not based on what the house was *worth*, but what the market said the price of the home should be.
And this was a bad idea. The banks thought they were being very crafty, to only sell mortgages based on the highly inflated price of properties, not its real value. They got greedy.
In the process, they managed to “create” money out of thin air, as least as far as their exposure to that mortgage went. Money that they are still responsible for.
bump for later
I thank the Good Lord everyday that he provided for me a house that’s paid for. Don’t owe nobody nuthin’.
Greatest, most liberating feeling in the world.
I've seen "conservatives" on this forum, advocating the same thing.