RANT: I Bet You Only Know of Two Ways to Buy a Home

RANT: I Bet You Only Know of Two Ways to Buy a Home

It pisses me off that the american public is so miopic that they have bought into the brainwashing that you cannot buy a house without a bank. I happen to be a real estate investor and my team only buys houses without banks, i.e. cash, direct from sellers. We can buy seller notes, carry notes for people that want to buy from us, or just outright buy houses.

You should NEVER go into debt to buy a house. Some people don’t learn until they are out of money completely.

51% of all transaction of home purchases in Vegas for the past 2 years has been in cash. Way back when, think grandparents, nearly everyone bought their house with cash.

The banks have tried to attract people to take out loans to buy homes and cars on credits for decades now. Even at 0% interest rates, still 30% of the country, before the housing bubble collapse, bought houses in cash. And, we’re not talking rich people. People saved their money and bought houses, as it should be, and should have always been.

As far as ponzi schemes, you’re talking about fractional banking, where a bank has only $1,000 in reserves, but can lend out $10,000 in “loans” based on money they do not have. To keep this working, the lendee is afraid that if he doesn’t pay up he’ll ruin his credit. However, the interest rate he pays BACK to the bank has to come from thin air. So the bank writes a bad check to you, on money that comes out of thin air, and you pay back the bank on money that comes out of thin air. So as you pay back the bank $15,000 dollars, he then turns around and lends out $150,000. And so on.

What really makes it a ponzi scheme is that the people paying back the interest have to take money OUT of the system to pay back the loan.

Let’s pretend that we could actually have a stopping point in time, to this game:

  1. you go to work and make a table
  2. your employer sells the table to john
  3. your employer gets money from john
  4. your employer pays you a salary
  5. you put your money in the bank $1,000
  6. john takes out a loan for $10,000 for a home improvement
  7. John pays back $15,000 from money he gets from work
  8. the extra $5,000 isn’t even in the system and before john can pay it back he runs out of money
  9. the bank did not have $10,000 to lend out in the first place so
  10. the wood john bought doesn’t get paid for
  11. the nails john bought doesn’t get paid for
  12. the paint john bought doesn’t get paid for

So after about a  year the system collapses from fraud. The only real money in the system was the $1,000. And, that is a ponzi scheme BY DEFINITION.

Madoff did the same thing, just with fewer steps and with less cooperation from banks.

  • He got the first round of investors to invest.
  • Here comes the second round and he pays off the first
  • the first reinvest
  • here comes the 3rd round and he pays off 1 and 2
  • by the 50th round, he cannot pay off 30% more than 1-49 have invested and runs away with millions, because it’s paper money and fake returns that they all keep reinvesting.

This is exactly what the banking system does. They keep making loans every hour and people pay off the loans every hour.

The government is in on it, because they have to pump money into the pool every hour, by the millions. By them pumping millions back into the pool of money, it means your 2 dollars is now only worth 50 cent, because it takes 4 dollars now, to buy what 2 dollars could buy before.

Madoff = ponzi
bank = ponzi
government = ponzi
social security = ponzi
income tax = ponzi

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Christmas Should Be More About Family and Food Than Gifts and Debt

Going Into Debt Over Christmas

They are going to try to get you to spend all your money you made this entire year in one shopping period, Christmas.  It is where they spend the most time and money for marketing.  But, if this economic period has not awakened you to how our country is completely upside down, then you truly need to wake up.  First of all, understand what the “holiday” is.  Christmas is the Christian observance of the birth of their messiah.  It is a strictly religious holiday.  If you’re not Christian, you shouldn’t even be observing the holiday to begin with.  However, because Americans have such a herd mentality, even Atheists buy their children presents on Christmas, because “everyone does it.”

If you’re not Christian, you shouldn’t even be observing the holiday to begin with.

What’s more is that, the Christian Messiah wasn’t even born in December.  He was born in June.

Dies Natalis Solis Invicti

Sol Invictus was the official sun god of the later Roman empire. The religion was created by Aurelian in 274, who made it an official religion alongside the traditional Roman religions. Scholars disagree whether the new deity was a refoundation of the ancient Latin religion of Sol, a revival of the religion of Elagabalus or completely new. The god was favoured by emperors after Aurelian and appeared on their coins until Constantine. The last inscription referring to Sol Invictus dates to 387 AD. and there were enough devotees in the 5th century that Augustine found it necessary to preach against them. A festival on 25 Dec. is sometimes thought to be responsible for the date of Christmas.

The Roman gens Aurelian was associated with the religion of Sol. After his victories in the East, the emperor Aurelian thoroughly reformed the Roman religion of Sol, elevating the sun-god to one of the premier divinities of the empire. Where previously a priests of Sol had been simply sacerdotes and tended to belong to lower ranks of Roman society, they were now pontifices and members of the new college of pontifices instituted by Aurelian. Every pontifex of Sol was a member of the senatorial elite, indicating that the priesthood of Sol was now highly prestigious. Almost all these senators held other priesthoods as well, however, and some of these other priesthoods take precedence in the inscriptions in which they are listed, suggesting that they were considered more prestigious than the priesthood of Sol. Aurelian also built a new temple for Sol, bringing the total number of temples for the god in Rome to (at least) four. He also instituted games in honor of the sun god, held every four years from AD 274 onwards.

The confusion surrounding Aurelian’s reforms has been significant, much of it rooted in the mistaken opinion that he was introducing a new religion, which, as is now clear, he was not. The following constitute the most common errors of fact attributed to Aurelian and his reforms.

Aurelian called his sun god Sol Invictus to differentiate him from the earlier Roman god Sol.

Actually, Aurelian is twice as likely to call Sol Oriens on his coins as he is Sol Invictus.  Only one of the fifteen or so pontifices of Sol adds the epithet invictus; all others simply call themselves “pontifex Solis”.

Aurelian built his new temple for a Syrian sun god, not the Roman one.

There is no credible evidence to support this, and ample evidence to refute it. The “Syrian Sol-hypothesis” is therefore now rejected by all specialists in the field.

Aurelian inaugurated his new temple dedicated to Sol Invictus and held the first games for Sol on December 25, 274, on the supposed day of the winter solstice and day of rebirth of the Sun.

This is not only pure conjecture, but goes against the best evidence available. There is no record of celebrating Sol on December 25 prior to CE 354/362. Hijmans lists the known festivals of Sol as August 8 and/or 9, August 28, and December 11. There are no sources that indicate on which day Aurelian inaugurated his temple and held the first games for Sol, but we do know that these games were held every four years from CE 274 onwards. This means that they were presumably held in CE 354, a year for which perchance a Roman calendar, the Chronography of 354 (or calendar of Filocalus), has survived. This calendar lists a festival for Sol and Luna on August 28, Ludi Solis (games for Sol) for October 19–22, and a Natalis Invicti (birthday of the invincible one) on December 25. While it is widely assumed that the invictus of December 25 is Sol, the calendar does not state this explicitly. The only explicit reference to a celebration of Sol in late December is made by Julian the Apostate in his hymn to King Helios written immediately afterwards in early CE 363. Julian explicitly differentiates between the one-day, annual celebration of late December 362 and the multi-day quadrennial games of Sol which, of course, had also been held in 362, but clearly at a different time. Taken together, the evidence of the Calendar of Filocalus and Julian’s hymn to Helios clearly shows, according to Hijmans and others, that the ludi of October 19–22 were the Solar Games instituted by Aurelian. They presumably coincided with the dedication of his new temple for Sol.

After Aurelian, Sol became supreme deity of the Roman Empire.

Therefore, if you, as a Christian, celebrate December 25th as the birth of your messiah, you are celebrating a pagan holiday and not the actual birth of the messiah.  And, how was the pagan holiday observed?  By gift giving!

The exchanging of gifts is one of the core aspects of the modern Christmas celebration, making the Christmas season the most profitable time of year for retailers and businesses throughout the world. Gift giving was common in the Roman celebration of Saturnalia, an ancient festival which took place in late December and may have influenced Christmas customs. Christmas gift giving was banned by the Catholic Church in the Middle Ages due to its suspected pagan origins. It was later rationalized by the Church on the basis that it associated St. Nicholas with Christmas, and that gifts of gold, frankincense and myrrh were given to the infant Jesus by the Biblical Magi.

I don’t think any more evidence need be put forth for the argument that what Christians are being taught as being the most holy day of their religion, is an actual pagan celebration, with a pagan ritual of gift giving.

It can be said that people going into debt, in general, just to give gifts deserve what they get.  I am here to tell you that there is another way.

I think a new tradition for Christmas should be started: paying off debts.  That means, instead of buying gifts and giving them away, families should come together and try to pay off or pay down debts, so the entire family prospers.  If you truly are Christian, there could be no more appropriate observance of the messiah that forgave all our debts, than a ritual paying off of debts.

A Jewish friend once told me that it is ungodly to be in debt to another man.

Proverbs 22:

7. The rich rule over the poor,and the borrower is servant to the lender.

22. Do not exploit the poor because they are poor and do not crush the needy in court,

23. for the Lord will take up their case and will plunder those who plunder them.

26. Do not be a man who strikes hands in pledge or puts up security for debts;

27. if you lack the means to pay, your very bed will be snatched from under you.

I don’t think I could warn you any more than this.

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New Jersey State Supreme Court Orders Mortgage Lenders to Answer for Fraudulent Foreclosures

Mortgage Lenders Ordered to Appear in NJ Court

By DAVID PORTER, Associated Press NEWARK, N.J. – Six lenders who have combined to file nearly 30,000 foreclosure actions in New Jersey this year face the possible suspension of their operations next month under a court order announced Monday by state Supreme Court Chief Justice Stuart Rabner.

The action follows a report submitted to the Supreme Court that, citing depositions and court filings in other states, paints a picture of systemic abuses in the filing of foreclosures that include so-called “robo-signing,” in which employees signed hundreds of documents without checking them for accuracy.

In one instance cited in an administrative order, an employee of OneWest Bank, formerly IndyMac Federal Bank, said in a deposition that she signed 750 documents a week, taking no more than 30 seconds per document and relying on others to check the documents’ accuracy prior to signing.

Employees testifying in other depositions said they were authorized to sign documents despite having no background in the mortgage industry and little or no understanding of what they were signing.

OneWest and five other lenders were ordered to appear in state Superior Court in Trenton on Jan. 19 to demonstrate why the state shouldn’t suspend their foreclosure actions. The others are Ally Financial, formerly GMAC; BAC Home Loan Servicing, a subsidiary of Bank of America; JP Morgan Chase’s Chase Home Finance; Wells Fargo Financial New Jersey and CitiResidential Living, a subsidiary of Citibank.

“It’s important that the judiciary ensures judges are not rubber-stamping documents that may not be reliable,” Rabner said in a conference call Monday.

He said he believes New Jersey is the first state to take such action against mortgage lenders, a view echoed by Ira Rheingold, an attorney and executive director of the Washington-based National Association of Consumer Advocates, which has tracked the foreclosure crisis.

“To have a state Supreme Court haul in these lenders, it’s something I have not seen reach this level,” Rheingold said.

Spokespeople for Bank of America and Ally Financial said the companies wouldn’t comment on the order. Wells Fargo spokesman Jason Menke said the company “intends to comply with the New Jersey court’s order and demonstrate why the foreclosures scheduled in New Jersey should move forward.” The other companies didn’t immediately respond to e-mail or phone messages seeking comment.

Rabner announced that 24 other lenders will be required to submit documentation to a special master, retired state Superior Court Judge Walter R. Barisonek, to demonstrate that there are no irregularities in their handling of foreclosure proceedings. Rabner stressed that that group of lenders has not been accused of wrongdoing and was selected because each had processed at least 200 foreclosures this year.

The six lenders scheduled to appear in court next month have processed more than 29,000 foreclosures in New Jersey this year, Rabner said. The other 24 have filed about 16,000. The total represents nearly three-quarters of the 65,000 foreclosures filed in New Jersey, a number that has tripled since 2006, Rabner said.

More problematic, he said, is that 94 percent of the foreclosures have been uncontested, often due to homeowners’ inability to afford legal counsel.

“That means there’s no meaningful adversary process to protect them,” Rabner said.

The Supreme Court on Monday also issued an order requiring attorneys in all residential foreclosures to certify that lenders have reviewed documents for accuracy and confirmed the accuracy of all court filings.

Homeowners in several states have filed lawsuits recently alleging their homes were foreclosed on even though they were up to date on mortgage payments. In some cases, banks carted away belongings and changed the locks on the wrong homes.

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Exit strategy: Bernanke to Take Profits from Loans

Bernanke: Taking Back the Stimulus

The Federal Reserve Bank is now poised to make millions in profits from the trillions of dollars it lent out these past couple of years.

Everyone is quick to forget that the Federal Reserve Bank is not a public bank, but in fact a privately owned bank. When they lend money they expect to be paid back and at a hefty profit. This last couple of years has seen them lend out trillions of dollars all in the name of “saving the economy.” However, unlike the failed banks they were “saving”, they always get paid back and never make and high risk loans. There is no such thing as high risk since the fed can simply call for the treasury department to pay them back. In fact, per a Ronald Reagan report, every tax dollar we currently collect goes to pay off the interest the government owes the Federal Reserve.

Enough history lesson.

Bernanke and company now expect to be paid in full. Unlike the loans it makes the federal government, the loans it made to the financial institutions are expected to be paid back in lump sums. Those loans were not made under the same understanding that exists between the government and the Fed.

The exit strategy is just that, Bernanke has to strategize to both appear as if he is still the savior of the economy, yet take profits as quickly as possible without damaging the very institutions that received the loans.

If he takes his profits too soon, the institutions could be damaged and go under. There is talk that no more bailouts would be forthcoming if profits are taken and the institution were returned to a bankrupt state. It would simply mean, in his mind, that the institution would never be able to assisted to return to a healthy state, and therefore be allowed to finally fail.

If he takes profits too late, he risks hyperinflation setting in. He and Greenspan both contributed to the housing bubble, along with businesses like Goldman Sachs. Bernanke is now fighting to maintain current housing prices and are trying to not allow them to fall back to real value which would probably fall around the prices 20 years ago. If the took profits too late inflation would undermine that strategy of propping up inflated housing prices as well, since it would simply inflate housing prices beyond most people’s reach. And, of course the byproduct of the economy failing again.

The rub of course is that once he takes profits, he will come under political pressure to artificially maintain low interest rates. No one ever said politics was a smart business. Artificially keeping interest rates low would completely undermine this entire 2 years. If interest rates are kept low, the economy would simply turn around and head right back to an inflationary state, packaged with more bubbles.

Federal Reserve Conference

Bernanke and friends are to meet at the annual Fed conference in Jackson Hole, Wyo. The issue of him taking profits and maintaining interest rates is sure to be the key note at the conference.

Analyst are debating between two to four or even five years for the Fed to take its profits back. Currently Fed balance sheets show a $2 trillion outstanding I.O.U. balance, more than double what it was when the financial crisis struck.

The fed announced it would not extend beyond October a $300 billion government debt-buying program. It was a program intended to lower consumer and corporate loan rates.

This past week the Fed extended a program designed to increase lending in the commercial real estate market. Only $40 billion in loans have been extended, comparatively minor to the $200 billion previously made available during the first phase of the program. Yet lending is still said to be stiff.

Another program is going to be allowed to expire October 30th, it was intended to support money market mutual funds, and it hasn’t been used to date.

The Fed is reducing lending under two other programs to banks. Clearly they are set to take profits, and soon.

The elephant no one is talking about though is the $1.25 trillion made to Fannie Mae and Freddie Mac. That will take a precise strategizing so as to not cause a huge upsurge in home prices.

There is still, what to do about the $300 billion in Treasury debt they bought has to be accounted for as well.

Understand that none of this is a question of how. They knew the “how” when they made all of these loans. It’s a question of “when”. When do they take profits.

However, the Fed doesn’t operate in a vacuum. They are under pressure from the government to keep the money flowing for entitlements. The politicians are assuming the Fed have created a new entitlement program.

Entitlements are like, welfare, medicare, medicaid, corn subsidies, these all buy votes to keep government in power. The government was under the false assumption that all the programs and actions by the Fed was a new set of entitlements they could cash in on for votes.

What Did the Federal Reserve Stimulus Include

Those programs include:

  • Bernanke slashed interest rates to record lows, near zero.
  • he provided low-cost loans for banks and bought debt so companies would have short-term “commercial paper” loans available to pay for salaries and supplies.
  • he bought mortgage-backed securities and government bonds to drive down interest rates on mortgages and other consumer debt.
  • he moved to support the mutual fund industry.
  • he instituted many emergency aid programs.

What the politicians don’t realize is, if the stimulus is kept in place, the automatic economic impact will be inflation.

By my calculations over $10 trillion has been funneled into the economy thus far. There is no way that if the Fed doesn’t take profits, and take them soon, hyperinflation will be a reality. At this juncture that money nearly disappeared, since most of it was under the table.

The recovery of the profits is going to be a careful balancing act.

Lastly, interest rates will have to raised. It was as much a part of the stimulus as all the real money handed out.

The rub that the government, Obama, and Bernanke are getting is that unemployment is through the roof. Analyst are predicting that it will get worse, especially when interest rates are increased. However, unemployment was never a concern for the Fed. At no point did Bernanke ever touch on that subject, nor has the legislature, nor Obama.

But, raising interest rates become a question of when. There is a mid term election coming up and I’m sure Bernanke will be under pressure as to when he raises interest rates. However, he can’t be too concerned about the politics, he has to take his profits sooner than later. If he waits to take his profits later he risks losing the benefit of it all through inflation.