Today, December 8, 2008, sources are reporting: more than half of the modified mortgage participants are defaulting. These defaults are presenting, after the mortgage is being adjusted.
The sources are revealing; the default rate is increasing, as time is passing.
The categories, of the revised loans, are not being revealed, by the sources. Perhaps, they are comprised, of sub-prime loans? Perhaps, the defaults are consisting, of a mixture; sub prime and more conventional, loans. The more conventional, loans are, perhaps, being included, as borrowers incomes are being reduced or eliminated.
As the financial malaise is continuing, such to afflict the USA economy; efforts are being directed toward stemming, the tide.
Efforts, which are determining, the causes, of the, residential mortgage, industry failures, are not presenting.
Once again, The Baby Boomer News is holding the opinion; the, existing, residential real estate available, for sale within the USA, is overpriced. This distortion is afflicting the entire market. Of course, some markets, which are being situated, within desireable, growing, USA areas, are more inflated, than are mundane markets.
So, incorrect valuations are the major contributing, factors, as the, residential real estate, markets are enduring, turmoil.
Are there other factors being involved? TBBN does state; the obscene concentration, of wealth, within the USA, is a contributing factor.
We are remembering, eighty percent, of the USA wealth, is being controlled, by twenty percent, of the USA population. In addition, the, top ten, percent, of income recipients, are controlling, more than fifty percent, of the annual income.
These greedy individuals are, frequently, being found, within the financial, insurance and real estate industries.
These people are, frequently, dishonest, intelligent, manipulative, street smart and well connected.
Is it possible, the "twenty-percents," identified within these aforementioned industries, are the cause and the effect?
Specifically, these individuals while plying their greedy ways, are creating, the environment, wherein the need is arising, for the creation, of sub prime borrowers.
After creating, this, sub prime friendly, environment; the "twenty-percents" are initiating and fostering the development, of the sub prime, residential real estate, mortgage industry.
The question: are the "twenty-percents" aware, the sub prime loan, industry is doomed for failure, as they are founding, the sub prime loan industry?
Previously, TBBN is suggesting; the implementation of a "living wage," via federal government legislation. A "minimum wage" is arbitrary, mired in political considerations and not adequate for the task. Said task is providing, each worker, with a "living wage," which is being determined, by a real world based, formula. This formula is using the ENTIRE Consumer Price Index's content, as the formula’s input variables are being determined.
Also, additional federal legislation is needed. This additional legislation is mandating, a maximum, annual, dollar amount, which is being derived, from wages. This amount is being applied, individually, for each and every wage earner; their respective opinions are not of consequence.
TBBN does hold the opinion; a leveling, of the wages playing field is inducing, the deflation, which is needed, as residential real estate prices are being aligned with the new, equalitarian, reality. Said reality, as applied, for the USA, is being needed, for a very long time.
Finger pointing is just beginning.
The USA economy is being reshaped, by adjustments, at this time.
What are the causes, of these adjustments? Greed? Incompetence? Lack of awareness?
Maybe, some of each?
An insightful opinion is being provided, via this hyperlink:
Today, November 23, 2998, Federal Reserve Chairman Ben Bernanke is, supposedly, admitting, his underestimating; the impact, upon the economy, which is resulting, as the sub-prime debacle is being revealed.
This quote is being attributed, toward Mr. Bernanke. “The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.”
Oh! Really?
House purchase is, frequently, the largest purchase, which is being completed, by a USA consumer.
The relationship, which is existing, between the USA economy and the, real property financing, industry is not difficult to predict. This relationship is not complex.
Blunt force and omnipresent are among the attributes, which are defining, this relationship!
Previously, before this sad situation is being scrutinized, knowledgeable people are explaining, the inherent weaknesses, which are marring, the sub-prime concept.
What is this man thinking? What is motivating, this man's thinking? Who is motivating, this man's thinking? Why is greed being selected, such to replace knowledge and, hopefully, wisdom?
"Economics For The Here And The Now," is being defined: make it up as you go along; on a day to day basis; implement, via the use of other peoples' money. This economics flavor is being favored, by the USA federal government, at this time.
November 12, 2008; Hank Paulson is adding, the daily wrinkle.
Specifically, the $700 Billion, which the administration is wresting, from Congress, is not being directed, toward the purchase of residential mortgage assets. These, previously, targeted purchases are, in many instances, being illiquid. The lack of liquidity is resulting, as the real properties, which are "supporting," these instruments, are continuing, such to experience declines, in their current market values.
These declines are appropriate. The real properties, which are supporting, the non performing, financial instruments, are possessing, inflated market values, as the mortgages are being created.
Now, these properties' values are moving, toward reality. Reality, as defined, for residential real estate, is realized, as structures are being depreciated and land is being appreciated.
Not sending, good money after bad money is, apparently, the federal government’s decision of the day.
Not directing, the "bail-out" money, toward the support of previous mistakes is a good decision.
This removal of support, for previous mistakes, is, perhaps, aiding the ongoing process, wherein residential structures are being depreciated, substantially.
Unfortunately, November 12, 2008, Hank is, also, stating: the "bail-out" money is being re-directed.
Now, the feds are directing, the "bail-out:" toward "direct investments" in some number of unidentified financial institutions.
The funds are, supposedly, being invested, for the benefit, of the, USA, taxpayers, from whom the funds are being taken.
This, direct investment in financial institutions, advisory is not good news for the USA citizens.
As an explanation, for this preceding, negative statement; we are remembering, the all-time, old-time favorite, of the "twenty-percents," Warren Buffet.
Our fellow citizen, Warren, is, recently, investing, $5 Billion, in Goldman Sachs. This transaction is providing, Warren, preferred stock shares, which are paying, a 10% dividend. Goldman Sachs receives, the money; Warren receives the shares.
Twenty days later; Hank, while using taxpayers' money, is purchasing, preferred stock, as an investment in nine banks.
Hank's shares are paying, the taxpayers 5%, only!
Previously, The Baby Boomer News is stating: the federal banks are, while being managed, correctly, separating, the monies, which are being used, for operations, from the monies, which are representing, the bank's capital.
If, we are believing, the story, which is being circulated, by the Bush administration; federal banks' managers are now incompetent. The incompetent managers are permitting, the operations' monies decimation. This decimation is complete.
Capital monies, which are the wealth of the banks, are being used, as the bank are meeting, operations obligations. This need, for operations monies, is such, the banks' capital investments are being breeched and are enduring, a, current, decimation.
TBBN is not believing, this, capital decimation, explanation is presenting, as a creditable scenario.
However, if this incompetence level is existing; the citizen taxpayers are not, correctly, supporting, the banks.
The taxpayers are not buying, the, inadequately securitized, papers, which are resulting, from poor operations decisions.
If, the capital decimation presentation is correct and true; the taxpayers are not investing, monies, which are being used, such to replenish, the banks' capital investments.
Boss and his "twenty-percents," bank owning, cronies are attempting, such to enrich, themselves.
This enrichment is resulting, as the citizens are being duped, into believing, the banks are squandering, their capital investments.
The banks are, TBBN does believe, hiding, their capital, at this time.
The banks’ managements are attempting, such to enrich their respective institutions’ capital amounts. These capital enrichments, which are coming forth, from the taxpayers, are not conveying, the powers, which enable the investors’ inputs, into the businesses’ operations. These empowerments are, traditionally, bestowed upon those making, contributions, into an entity’s capital.
The, USA economy is, hopefully, continuing, as an unfettered economy.
Federal government aide, which is being directed, toward the "Big 3," USA incorporated, automakers, is being advocated, by some, at this time.
Such aide is not correct. Baby boomers are not, correctly, being required, such to contribute, for the welfare, of these corporations. Such, proposed, contributions are, of course, forthcoming, from federal tax revenues.
Unfortunately, the tax-paying, citizens are not receiving, votes, which are being directed, toward the management, of the companies, in return, for the proposed contributions.
Saving factory workers jobs is the modus, which is being suggested, frequently, as this latest "bail-out" effort is being presented, for consideration.
Maybe, the, proposed, cash infusions are saving, the aforementioned corporations. However, there are not any guarantees, such infusions are being adequate for the tasks.
In addition, which methodologies are guaranteeing, the employment levels, within the beneficiaries, are being maintained, as the donations are being placed, into the corporations' capital structures?
Automations, out-sourcing and revised model mixtures are affecting, the employment levels, within these specified corporations.
Also, the corporations are not as yet learning, from their mistakes. Yesterday, November 16, 2008; Ford motor company is purchasing, television commercial time, in a a large amount. This, time purchase is sponsoring, a NFL football game. This specific game is airing, after 4 PM EST. This programming is appearing, on the CBS network.
Each, of these expensive commercials, are promoting, the virtues, which are, supposedly, inherent, within a 2009, F-150, pick-up model, truck. This advertising is being directed, toward the sale, of a vehicle, which is, for most people, inappropriate, at this time.
A fraction, of the pick-ups and SUVs, which are being sold, during recent years, are being necessary, as transportation, for their respective owners.
The pick-ups and the SUVs are, always, being absurd. Witness, an overeducated; overpaid, over fed, over coiffed; over dressed; thirty something matron, as she is maneuvering, one of these behemoths, on a narrow city street. This process is being completed, while the vehicle’s operator is not possessing, an accurate and true perception, as to the location, of the vehicle's four corners. This described vision is confirming, the absurdity, of these vehicles.
Much better, the "Big 3," are working, through Chapter 11 bankruptcies. This, action course is being followed, by many corporations, which are being burdened, with poor management decisions. If, the, domestic based, auto manufacturers are modifying, there errant ways; these, domestic based, manufactures are surviving, their bankruptcies and are prospering, into the future.
Advertisements, which are appearing, on websites, do state; Obama's intelligence quotient (IQ) is 124. Perhaps, this statement is true; perhaps, this statement is not true.
Many boomer are possessing, IQ scores, which are settling, between 120 and 125, through multiple testing instances.
Those, of us, so classified do know; we are not adequate to the task, which is being USA President.
In addition, Bama Boy is a half-breed. The man's parentage is including, a member, of The Blacks.
Maybe, whiile residing, within Kenya, The Blacks are well behaved. In the USA, The Blacks, dwelling, within the USA, are not well behaved.
Indeed, within the USA, The Blacks are arrogant, belligerent, loud, uncouth, unlawful and violent.
Why do the, northeastern USA, residents vote for this man? The, majority, of the majority, norheastern USA residents are being confronted, by these trouble makers, daily. Perhaps, the non-blacks are not presenting, at the polls, in the numbers, which are reflecting, their superior census.
We, the majority, of the USA majority, are being burdened, with the prospect, a half-breed is serving, as our nation's President, through the foreseeable future years.
The hard facts are, most likely, confirming, the suspicion: this man is failing, as he is functioning, as President.
Hopefully, via the, USA, citizens enduring, this adversity; positive change is presenting.
Specifically, as Bama Boy is failing, while pursuing, his desired occupation, the majority, of the majority, are becoming, awake, once more. As a result, of this awakening, The Blacks are being relegated, via new legislation, into their, correct, societal situation.
Such situation is does mandate: The Blacks are being managed, as the, troublesome, fourteen percent minority, which is the true and correct description, of these despicable individuals, as they are residing, within the USA.
The Civil Rights Act of 1964 and the various and assorted affirmative action legislations are, correctly, being reviewed and, likely, being eliminated.
These aforementioned, legislations are not, in significant numbers, improving, the attitudes and behaviors, of The Blacks. These aforementioned, legislations are depriving, the majority, of the majority, that, which is, rightfully, benefitting, the majority, of the majority, members.
The, majority, of the majority, does have need, at this time, such to place, a new, focus. This, new, focus is being directed, toward, what is true and correct. Previous, legislation is responsible, for creating, a mindset. This, legislation induced, mindset is pursuing, a focus, which is not reflecting, the, true and correct, facts, which are defining, The Blacks.
Once again, we, the USA citizens, are being afforded, an opportunity. This opportunity is, of course, our voting, for a new President.
Unfortunately, the, 2008 selection, process is being dampened. The candidates are not possessing, the qualities, which are setting, them apart, from the mainstream.
Perhaps, this election is serving, as an awakening, for the USA citizens.
What is being needed, in the way of changes? These changes are being intended, such to attract superior individuals. These, so attracted, individuals are being willing, such to face the limelights and offer themselves, as candidates, for elective offices, within the USA.
Suggestions:
1. The President, the Senators and the Representatives are being limited. These individuals are serving, one term, only, in a, particular, elected office. The term lengths, which are being attached, for some elected offices, are, perhaps, being lengthened.
2. The individuals, whom are being elected, into the aforementioned offices, are receiving, seven figure annual salaries, while serving, their respective terms in office.
3. Political contributions are being eliminated. The costs, which are being attached, for campaigning, are being paid by the Federal government. In addition, each candidate, for any particular office, is receiving, a like amount of campaign money. Big state; little state; big district; little district; all the same.
4. Lobbyists' activities are being curtailed, if not eliminated, via new legislation, enactment.
5. Elected officials are being provided, lifetime, seven figure, annual incomes, after leaving office. These stipends are being provided, via the Federal government. While receiving, the aforementioned pensions, former elected officials are being barred, from employment, with profit making firms. In addition, considerations, gifts and loans are not being received, from profit making entities, while these, retired, elected officials are receiving, the government pensions.
Some changes are being necessary. The citizens have a need. The citizens must attract superior people, who are motivated, such to manage the Federal government's operations, for the benefit, of the citizens.
Self aggrandizement and self enrichment, which are, frequently, defining, elected officials’ behaviors, are not being correct behaviors.
We do not have need; for half-breeds; mothers possessing, children, who are "up the stump, without a license"; geriatrics dwelling, in the seventh decade, of their respective lives; and "Old Pol" dealmakers.
These candidate, for President 2008, are very similar, for the people, who are residing, within our home neighborhoods.
We all do understand; the neighbors are not managing, the USA, under any circumstances!
Sources are reporting housing prices are dropping 16.6%..
This percentage is reflecting, an average price decline. The index, which is producing, the, 16.6 average, price drop, is incorporating, the, average price declines, which are being experienced, within twenty, major, USA cities.
The individual cities are experiencing, average price, declines ranging from -2.7% to -30.7%.
This, reported, price decline is an excellent start, for a journey.
This journey is, of course, following, the road toward sanity; as sanity is being applied, for residential, real estate markets, valuations, within the USA.
Unfortunately, there is much, arduous travel remaining, as these prices are being delivered, into reality.
The real estate markets are continuing, such to be rift, with the ridiculous.
The obscene, greed driven, examples are continuing, such to exist, as well
The rules of thumb, for residential construction: after ten years, the vermin is, into the building and after twenty years, the water is, into the building.
We are remembering, the goal is: value these older, structures, for the land plot value, only!
A, forty six year old, residential structure, which is containing nominal quality construction, is possessing, value as being measured, by the underlying ground.
The labor and materials, which are being incorporated, into the original construction's project, are fully and completely depreciated.
Why is any reasonable person investing, $350,000, into such a structure? A new 2500 square foot dwelling is being built, with construction costing, $80 to $100 per square foot. The ground plot is holding, some value, which is separate and apart, from the, per foot, construction costs.
This, advertised, project is pure greed. The financing, which is being attached, for this insanity, is more of the same nonesense, which is resulting, with a $700 Billion bail-out!
The Hymie the Keicks are being responsible, in large part, as the financial institutions are failing. Bet your bottom dollar; their brethren are being responsible, in large part, as the greed is presenting, for the residential real estate markets.
Always, for two thousand years, the same suspects. This, deplorable condition is continuing, because the majority, of the majority, is not taking, the needed actions. The Hymie minority is not, correctly, being allowed, such to control the lives and the destinies, of the majority's members.
Boomers, who are lifelong renters, have to be amazed.
The crying, about the poor homeowners loosing, their homes through foreclosure, is continuing.
Renters are aware; as rental payments are remaining, unpaid; we are enduring evictions.
Of course, boomer renters are well indoctrinated, as second class citizens, within the USA.
Now, politicians are suggesting, more aid is forthcoming, for the "homeowners."
The FDIC is suggesting, the 'insuring,' of loans. The Treasury is suggesting, the recalculation of mortgage loans; with, supposedly, lower payments being incumbent. Some state legislatures are enacting, legislations, which are forestalling, the foreclosure process.
These, enumerated, efforts are threats.
Excess valuations are plaguing, the residential real estate markets. The possibility is existing: the inflated valuations are being removed, via the foreclosure process. These, most recent, government suggestions are thwarting, the foreclosure processes.
Sources are reporting: home prices dropped 5.9 percent from a year earlier during August 2008.
This figure is a great start! However, residential real estate valuations are still inflated. Again, the prospect, of fifty years and older properties, being sold for five and six figure amounts, is absurd. These properties are, correctly, being valued, in total, for the value, of the underlying ground.
Think about this; why is a market, for sub-prime mortgages existing?
The properties’ values are inflated. Wage earners, who are qualifying, as prime mortgage prospects, are no longer qualifying, as such, because the inflated values are existing.
Therefore, these, home ownership, prospects are being reclassified, as sub-prime mortgage, prospects.
The equity markets are, currently, removing, the excess valuations, with which they are being afflicted.
This same removal, of excess valuation, is correctly, being permitted, such to propagate, through the residential real estate markets, within the USA
The numbers, of potential residential real estate purchasers, being classified, as sub-prime is being reduced, as the residential real estate, within the USA, is becoming, accurately valued.
The, current, additional, government agencies, proposals, which are enumerated, above, are perpetuating, the market conditions, which are fostering, the sub-prime, mortgage industry's establishment.
We, as USA citizens, are demanding, the federal and state governments are ceasing, the efforts, which are thwarting, the opportunity, for a return of real estate values, which are based, upon the fundamental understanding: land appreciates and structures depreciate.
The best medicine is, often, the medicine, which is the, worst tastomg, medicine.
Sources do attribute the quote contained, herein, toward, Thomas Jefferson.
We are remembering, Mr. Jefferson is the author, of the Declaration of Independence; Mr. Jefferson is, also, the third President of the United States.
This quote is "food for thought":
"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."
Individuals and groups of people form business entitles. These entitles, most often corporations, are divided into shares. The entitles are capitalized via the sale, of these shares, to other individuals; to other groups; to other entities.
Subsequently, these same shares are bought and sold in the open marketplaces. These open marketplaces are being identified, as exchanges.
So, there is a very simple explanation, of how stock markets are coming, into existence.
Hopefully, this explanation's simplicity and lack of details is not confusing, any, of the individuals, who are reading, this commentary.
The point: The aforementioned, formation sequences is not incorporating, any processes, which are functions, of the federal government.
During, recent weeks; the federal government is assuming, stances, which are inappropriate.
First, the federal government is deciding, such to purchase $700 Billion of non performing assets, which are, allegedly, clogging the USA credit markets.
These assets are being purchased, with taxpayer money, from financial institutions, which are being subjects, of public ownership.
The federal government's purchase, of non-performing assets, from a private business, is not correct.
The assets, which are being purchased, are having their respective valuations being dependent upon the valuations, of other assets.
There is existing, a strong possibility; these underlying assets, which are providing, the basis for valuation, of the assets being purchased, are not accurately valued. These underlying assets are residential real estate properties.
Subsequently, during the week, which is commencing, October 5, 2008, the federal government is proposing, such to purchase equity interests in the affected financial institutions, which are the owners, of the non-performing assets.
The question: Why are the USA equities markets plunging, downward, during the week, which is commencing, October 5, 2008?
The answer is obvious.
Central government is presenting, with interventions, which are being directed, toward the operations and internal affairs, of these equities markets’ membership.
Such interventions, are not being, a part, of the original equations, which are bringing forth these equities markets.
Said equations are providing, the basis, which is being used, as these equities markets are being formed and as these equities markets are operating, through the years.
The upheaval, which is evident, during the week, commencing October 5, 2008 is analogous to an organism, which is rejecting, a virus infection, or a bacterial infraction.
Now, 3:00 PM EDT, October 3, 2008; sources are reporting, the U.S. House of Representatives is passing, the infamous $700 Billion "bail-out" legislation.
As always, The Baby Boomer news is holding, the opinion: this legislation is wrong.
This legislation is not correcting, the underlying greed, mismanagement and poor application, of basic economics. All, of which, are being identified, as contributors, for the economic crisis, which is, allegedly, existing, within the USA.
First, the problem is not being corrected, permanently, via the implementation, of this legislation.
Second, this legislation is fostering, an environment, which is maintaining, the inflated values, which are afflicting, residential real estate valuations, within the USA.
Purported, features, of this newly passed, revised, "bail-out," legislation, do include:
Increased protection for saving deposits - At this time, The Federal Deposit Insurance Corporation (FDIC) is not possessing, the funds, which are being necessary, such to insure citizens' bank deposits, while said deposits are remaining, insured, at the $100,000 level. Currently, the FDIC reserves are remaining, below the amounts, whcih are being mandated, by the Congress.
Specifically, the FDIC reserves amounts are $52.5 Billion. The bank deposits, which are supposedly, being insured are presenting, as a $4 Trillion total amount.
Where is the money, which is assuring, this, additional, insurance protection is being in place?
Increased child tax credits - Pure PR. Discriminatory legislation. Not germane, for the problem at hand.
More aid for hurricane victims - Once again, not germane. This amendment is being motivated, by the desire for votes. Discriminatory legislation.
Tax breaks for renewable energy - Not germane, for the problem. Indirectly, these incentives are, perhaps, providing, support for the inflated, residential real estate, values, which are existing, within the USA.
Higher starting limits to alternative minimum tax - Not germane, for the problem. Disgraceful attempt, such to garner voter support, for a hot steaming pile.
Want prevent a reoccurrence, of this or similar problems?
Great, eliminate the root cause, which is the excessive valuations, which are being placed, for residential real estate, within the USA.
Eliminate, these excessive valuations, via the implementation, of new real estate appraisal methodology.
This new methodology is separating, the value of the land, from the value of the structure.
After implementation is being completed; these valuations are being. strictly, maintained, as properties are being bough an sold.
These valuations are being immune, for the hype, which is dominating, the residential real estate markets, within the USA, for many years.
Meanwhile, let us eliminate, the foreplay, move directly into the main event. An example, of such meaningful action, is being depicted here:
At this time, 3:30 PM, September 30, 2008; the USA House of Representatives is continuing, a course of action, which is being supported, by a majority, of the assemblage's members.
Specifically, the Congress is saying, no, as the body ponders, the $700 Billion bail out
Many, USA citizens are in agreement. The, vocal, citizens are making, opinions known, for the Congress.
One facet, of this proposed salvation, is not receiving, extensive, informative coverage.
As you probably do understand; the monies, which are comprising, a bank's capital are an asset. These monies are the ownership, of the bank. These monies are separate and apart, from the monies, which are being used, as needs arising, from operations are being satisfied.
Such operations’ needs are being represented, by demand deposits; time deposits; loans, both secured and unsecured; certificates; mortgages.
The Baby Boomer News does have a question.
Are the "bail-out" candidates being required, such to contribute, their capital monies into the money pool, which is being used, such to complete, the "bail-out" operation?
Some weak banks are filing, bankruptcy petitions.
Some, other, weak banks are being absorbed, by stronger banks.
Are the bankrupt banks and the absorbed banks retaining, all or part, of the wealth, which is comprising, the failed institutions’ capitalizations?
The hyperlink, which is appearing, below, does open, a copy of "Emergency Economic Stabilization Act of 2008."
If you are viewing, this document; please, do read Page 9, Lines 8 Through 12.
Also, Page 13 Sub 6 Lines 8 Through 18.
Perhaps, this, specified, text is revealing, a "loophole." Said "loophole" does provide, empowerment, for the affected financial instutions.
The specific empowerment is enabling, the instutions, such to retain their respective capital structures.
Banks, investment banks, savings and loans, mortgage companies, insurance companies and assorted, additional, financial institutions are ‘’twenty-percents’’ controlled entities. These ‘’twenty-percents’’ members are, in the main, supporters, of Boss Bush.
The Baby Boomer News is, repeatedly, stating; the situation, wherein eighty percent, of the USA wealth, is in the control, of twenty percent, of the USA population, is the underlying, cause, for many problems, which are exiting, within the USA, at this time.
The USA financial markets and the USA total economy are, conceivably, teetering, upon the precipice of chaos, at this time. This, aforementioned, misappropriation, of real wealth and personal wealth, is being identified, by TBBN as a contributor, for the sad state of affairs, which is domintaing, the USA economy, at this time.
Marriner S.Eccles is the Chairman of the Federal Reserve during, the years between, 1934 and 1948. Mr. Eccles is selected, for this opinion, by President Franklin D. Roosevelt.
Unfortunately, Mr. Eccles is somewhat "two-faced." The man is a millionaire, by age 22.
However, during, 1951, in the publication, Beckoning Frontiers, Mr. Eccles is stating:
As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth — not of existing wealth, but of wealth as it is currently produced — to provide men with buying power equal to the amount of goods and services offered by the nations economic machinery.
Obviously, Mr. Eccles, while amassing, a personal fortune is aware; concentrated wealth is an anathema, for the USA economy.
More important, the principal, which is reveled, within the 1951 statement, is being ignored, as the, current, 2008, economic crisis is a building. This building process is occurring, through the years, which are containing, recent, USA, economic history.
Mr. Eccles is revealing, further, deeper, insights into what is feeding, the, 1929 - 1933, USA economic depression. This knowledge and the resulting wisdom are being revealed, within his,
1933, testimony, before Congress
Herein is an events litany. This litany is revealing, the events, which are defining, the 1929 - 1933 USA, economic depression :
From 1929 to 1933, production at the nation's factories, mines and utilities fell by 50 %
Real disposable income fell by 28 %
Stock prices fell by 90 %
The number of unemployed rose from 1.6 million in 1929 to 12.8 million in 1933
At its worst, 1 in 4 workers nationally were out of work
Auto production fell 75% from its 1929 peak
Nine thousand banks failed between 1930 and 1933Once again,
Mr. Eccles is revealing, thoughts and conclusions, which are being applicable, for the, current, 2008, financial debcle, which is afoot, within the USA.
Hopefully, the cliché, which is stating: those who are refusing, such to learn form experience are being destined, such to repeat, the learning experience, is not being applied, for the current, USA, economic problems, situation.
The federal government is proposing, such to spend $700 Billion, of taxpayers money. The money is being directed, toward the purchase, of assets. Said assets are, possibly, not possessing, intrinsic values, in the aggregate amount of $700 Billion.
This scheme is another federal government effort, which is designed, such to thwart the laws of economics.
The citizens are, apparently, divided, as to the advisability, of this aforementioned effort.
57% of Public Favors Wall Street Bailout
L.A. Times/Bloomberg poll: Only 31% favor bailout
The Baby Boomer News does believe, as stated previously, the residential real estate marked is, correctly, collapsing, at this time.
This market, which is being comprised, of overpriced structures, is rotten.
The financial entities, which are fostering, the excessive valuation processes, as they are accepting, mortgages, are, correctly, failing, at this time.
The, USA, citizens' reluctance, such to support this "bail-out" proposal is understandable.
The, USA, citizens are bearing, burdens, which are resulting, as bailouts, of financial entities, are being effected, previously.
This $700 Billion proposal is presenting, for TBBN as being implemented, in a backward fashion. The old cart and horse comparison.
If a "bail-out" is being pursued; please, do minimize the pain, which is being inflicted, upon the, USA citizens!
The mortgages, which are bundled and sold to investors, are, as previously stated, not fully supported, by the underlying properties. The availability, of mortgage money, and the bizarre, residential real estate evaluation, process, which is being found, within the USA do conspire, such to create overpriced, real properties
The land components, of the underlying properties, are the only components, which are being amenable, for accurate valuations. In addition, the land components are, very likely, continuing, such to appreciate, as time is continuing, such to pass.
The "bail-out" total amount is being reduced, via the timely appraisals, of the underlying, properties’ land components.
Specifically, the appraisals, which ate being undertaken, at this time, are being based, upon the values, of the land components, only!
This methodology is providing, an accurate and easily determined valuations, for the only components, which are possessing: continually appreciatig, intrinsic and accurately measureable values.
Appraisals, of the land components, are being completed, with relative ease and in an expeditious manner.
The new appraisals are being applied, for the mortgages supporting, properties, which are subjects, for the federal government's “bail-out.”
These specified mortgages are constituting, the underlying securities, for the mortgage packages, which are being purchased, by investors, in the past.
These, two, in sequence, processes do reduce, the $700 Billion, “bail-out” amount, significantly.
TBBN is guessing; the, “bail-out” amount is being reduced, by two-thirds; the taxpayers are paying, for the land components, only!.
The taxpayers are being burdened, with an amount, which is between $300 Billion and $400 Billion, as the revised appraisals are being used, such to create, the taxpayers’ financial obligation.
The, amounts balance, which is remaining, may be recovered, in part, via the sale, of the mortgaged properties.
Owners, of the troubled, mortgage properties, are, correctly, assuming, the obligations; for the remaining, moneies owed. These obligations are being met, via the implementation, of installment loans, which are being assumed, by the, previous mortgagor.
As an example:
$100,000.00 = Full Market Value – Per County Assessment Office
Lender And Realtor Suggestions Are Not Of Consequence
$30,000.= Land Component – Per County Assessment Office
$130,000.00 = Mortgage Amount In Default – Per Lender
$30,000.00 = Taxpayers Liability For A Bail-Out
$70,000.00 = The Asking Price Which Is Being Sought As Troubled Property Is Offered For Sale
Remember: Land Component Is Being Paid By Taxpayers
$30,000.00 = Balance Remaining – Paid Via Previous Owner’s Installment Loan
In addition, the title, for the property is encumbered, with a lien. The lien amount is $30,000.00. The lien is in favor of the U.S. government. This lien is recorded, and is presenting, as a deed encumbrance, for the new owner(s). This lien is subordinate, for a first mortgage.
Talk about being misguided.
Today, September 23, 2008, sources are reporting, the comments, which are allegedly being uttered, by James Lockhart. Mr. Lockhart is the Federal Housing Finance Agency's director.
Mr. Lockhart is suggesting, such that; Fannie Mae And Freddie Mac are, at this time, loosening, the lending standards, which are being applied, for potential mortgage makers.
Specifically, these potential mortgagees are seeking, such to use, the aforementioned agencies' services.
The, July 2008, housing price decline, which is being reported, is, ostensibly, motivating, Mr. Lockhart's suggestion.
Mr. Lockhart's suggestion is wrong! This man is attempting, such to destroy the, presently existing, golden, opportunity, wherein home prices are being reduced, such to reflect the true value, of residential real estate, as same is existing, within the USA.
Does this man not understand; retention, of rigid loan qualification standards in conjunction, with the continuing decline, of residential real estate prices, is eliminating, the problems which are afflicting, the residential real estate market, in the USA?
As housing prices are declining; more potential buyers are qualifying, legitimately, for financing, which is being dispersed, while using, rigid standards.
On the other hand; Mr. Lockhart's suggestion is, possibly, fostering, a reemergence, of an environment, wherein unqualified buyers are being granted loans, which are financing overpriced, properties.
Boss Bush, his "twenty-percents," supporters and law enforcement are desiring, such to remove Constitutional guarantees, from the, USA citizens.
This aforementioned group is continuing, such to devise methods, which are advancing, their common goal.
Boss is the front man. The President's function is to devise the plans and push the plans through the Congress.
The "twenty-percents" are, as always, seeking, absolute, unquestioned, control, of the masses. Such control is assuring, the continuation, of the status quo. Said status quo is resulting, with eighty percent, of the, USA, wealth, being controlled, by twenty percent, of the USA population.
LE seeks to continue, such to pull down the $4K to $5K each month; ride about in the Crown Vics; strut in the uniforms; "punk out" the poor and the weak, who are being forced, such to pursue crime, as an endeavor.
LE is needing, work. These days every little burg is possessing, a police department; this assessment is seeming, such to be true. As LE is investigating, incidents; the focus is upon, the course of action, which is supplying, the most work hours. Good and bad; right and wrong; up and down; forget about those.
Fortunately, some members, of the Federal judiciary, are determined, such to protect, the, USA, citizens. These individuals are rendering, citizen protecting decisions. Specifically, these decisions are upholding, the legal concept, which is probable cause.
The link, which is appearing, directly below, is leading, into a website. This website is containing, a news article. This article is detailing, the, courageous, enlightened and thoughtful behaviors, which are being displayed, by two members of the federal judiciary.
The Baby Boomer News is sending, kudos!
Sunday, September 7, 2008, sources are announcing: Fannie Mae and Freddie Mac are being placed under the control, of a USA, federal government, agency, This action is, supposedly, being intended, as an effort, such to restore order and confidence, into the USA economy. These desired effects are, hopefully, being, results as home foreclosures are being delayed or eliminated.
The Baby Boomer News is understanding, at this time, this receivership plan is moving, up to $100 Billions into each, of the entities, which are Fannie Mae and Freddie Mac.
This money is, as always, eventually being supplied, from the, USA, taxpayers.
This action is rebutting, the, accurate, cliché; two wrongs are not making a right.
The hard truth: this wrong is being the most recent addition, in a series, of wrongs!
Multiple, incorrect, actions, which are being directed, toward the facilitation, of residential, real property, financing, are proceeding, this, most recent, affront.
These actions, amass, are being responsible, for the current, residential real estate, financing, problems and the aforementioned, incorrect response, which is being directed, toward the problems..
Buying, financing and selling, of residential real estate and commercial real estate, are, correctly, remaining, enterprises, which are being supported, by private entities, only!
The agencies, which are comprising, the federal government, are not, correctly, being established, such to provide funding, for real estate purchases; provide repayment insurance, which is protecting, mortgage makers; provide an apparatus, via which, mortgages are being packaged and sold for the benefit, of mortgage makers and mortgagee investors.
In addition, the legislative branch, with or without consent from the executive branch, of the federal government, is not, correctly, legislating, the establishment, of quasi government corporations, which are being involved, with the above enumerated, activities.
The currently existing, entities, which are including, FHA, VHA, Fanny Mae and Freddie Mac, are, each and every, incorrect, federal government, endeavors.
Unfortunately, the federal government, with the consent, of the USA voters, is being involved, with each, of the inappropriate activities, which are being identified, within the previous paragraphs.
These, federal government, incorrect, involvements, in the residential real estate, financing, industry are responsible, as the market price, of residential real estate, is continuing, such to reflect, excessive valuation, of individual properties.
These, federal government, incorrect, involvements are responsible, as individual, marginally qualified, buyers are being provided financing. This financing is being supplied, for properties, which are being afflicted, with inflated market values.
The, real estate financing, industry, functions are, correctly, being returned, into the private sector, at this time.
While the, real estate, financing, responsibility is, correctly, remaining, within the control, of the private sector; the, real estate, valuations, practices, as we know them, such to exist, within, the USA, are having, a need, which is entailing, a methodology change..
A significant, flaw is afflicting, the USA real estate industry. This flaw is defined, via the bizarre method, which is being used, as real estate is being valued.
This bizarre method is responsible, as inflated, residential real estate, values are becoming, the norm.
The inflated, real estate values are providing, the environment. The environment is fostering, the development, of the, aforementioned, inappropriate, federal government, practices
As a hypothetical, yet viable, example:
Circa 1948; a not uncommon behavior is the purchase, of a building lot and the construction, of a private home, upon the lot.
Possibly, the building lot is being priced, $1500.00; the construction is generating, an additional $8000.00 expense. Great, mom and dad are possessing, a, comfortable, new home.
Now, 2008, the building lot is remaining, in existence. This building lot is appreciating, through the years. This appreciation is true and correct. Land, which is being used, for human shelter, is finite. While humans are continuing, such to dwell, upon this planet; usable land is appreciating.
A possibility does exist; the, built in 1948, structure is remaining, in place.
Unfortunately, the, poor, real estate, valuation process, is remaining, in place, within the USA.
This flawed valuation process is resulting, with the structure's value being appreciated.
This structure appreciation is incorrect! The structure's value is not appreciating, from a value, of $8000, into a value, as an example, of $50,000
The practice, wherein an object, which is being constructed, from oxidizing materials, is being appreciated, as time is passing, is a "twenty-percents" rip off.
Hard fact; first class masonry construction is possessing, a useful life, which is, approximately,100 years.
The 1948 structure, if first class, is consuming, more than half the useful life, of the structure, at this time.
The water and the vermin are inside, the structure. Renovation, repair, and replacement are ongoing, costly concerns
The structure’s true value is $0!
The, 1948 example, property is not possessing, a true and correct, value, which is $80,000,00.
The, 1948 property is possessing, a, true and correct, value, which is $30,000.00.
The $30,000.00 is, of course, being contained, within the ground.
Do not remodel; do not "fix-up"; do not repair; do not, certainly, place, a, commemorative plaque, on the outside wall.
At the earliest date; demolish the structure.
Too expensive? YES, as the status quo is remaining, in place!
NO, as the status quo is being changed! As structures are being built, with a known demolition date being in place; the structure is being built, using materials and techniques, which are reflecting, the structures’ pre-determined, lifespans.
Room additions, new kitchens and bathrooms are being eliminated. Hymie, the Jew, is not visiting, such to peddle new windows. Bubba is not installing, a, replacement, furnace and air conditioner.
Yes, we are eliminating, emotion based, waste, which is, currently, finding, a refuge, in the residential housing stock.
More important, this, pre-determined, structure lifespan, methodology is eliminating, sub standard housing, within the USA.
True, the planned obsolescence program is eliminating, the excessive, market prices, increases. These increases are the, current, status quo; which is afflicting, residential real estate, structures' valuations.
Very important; the mindset, which is being held, by residential real estate owners must change. These owners are, correctly, ceasing, such to hold the building, in which they are residing, as an appreciable asset.
Of course, fixing the, USA, housing stock is not fixing, the financial problems, which are being attached, for real property, financing, within the USA
Financial problems, which are being incumbent, with residential real estate financing, are exiting, at this time.
Mortgage foreclosures, which are affecting, some number, of residential properties, during the immediate future is a catharsis, which is being necessary, at this time. This, unfortunate, circumstance is reducing, the bloat and nonsense, which is being attached, for the valuations, of residential real estate, within the USA, at this time.
The nonsensical, costly for taxpayers, plan, which is being revealed, by the federal government, September 7, 2008, is perpetuating, the, current, machinations, with which, residential, real estate market, prices are being afflicted, at this time.
The Baby Boomer News is suggesting, these problems are being reduced, or, hopefully, eliminated, in the future. The problems' eliminations are being brought forth, via the implementation, of a, two part, residential real estate, financing, methodology.
As always, TBBN is suggesting:
A mortgage, which is being applied for the purchase, of the land. Obviously, the mortgage amount is being limited; the land’s value, at the time, of the purchase, is determining, the mortgage amount. This mortgage is, possibly, being a "balloon" mortgage type. Interest is being paid during, the mortgage's lifetime. The mortgage principal is being retired, as the structure is being replaced.
Most certainly, the two part methodology is holding agreement, with the ongoing, principal; land is is continuing, such to appreciate!
The structure is being financed, via the use, of an installment loan. This installment loan is holding a term, which is as is the pre-determined lifetime, of the structure. The installment loan is being retired, via the use of monthly payment. The monthly payment is being directed, toward the retirement, of the installment loan’s principal and the installment loan's interest. This loan is operating, as an auto loan is operating. Autos being another, of the asset classes, which are continually depreciating.
Yes, real property is continuing, such to be bought and sold, as this two-part financing system is being in operation. Residential property owners are moving, as need or want is dictating. The land mortgage is retired, before maturity, from the house sale proceeds. The installment loan is being retired, before maturity, from the house sale proceeds.
A, new land mortgage is made. A, new, installment loan is being created. The installment loan amount is being determined, from the structure's remaining useful life. The useful life is, of course, being determined, via the date, upon which demolition is becoming due.
The good news; as residential real estate is being bought and sold; price negotiation, as directed toward the structure, is being eliminated. The price is being determined, based upon the years, which are remaining, until the structure is being obsolescent.
From The Perspectives Held By Others
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