Analyst's note: Absolutely must read. Sorry ... someone just purchased your home and your debt is going up. Some might consider this story from FoxNews written by Dunstan Prial & Adam Samson to be old considering it is about an event from 9/13/2012, but we've not seen anything yet regarding what is coming our way as a result. If you think the first housing bubble was bad -- just wait... Here is what a little investigation has found regarding "the rest of the story" as our federal government and a cabal called the federal reserve once again abuse power that comes from "We the People". Here is what seems to be happening.
- Federal Reserve creates $40B every month indefinitely out of thin air
- It is our home mortgages they are buying with that $40B/mth.
- The Fed will now take our mortgages and "hedge" the derivatives market. They will be "fractionalize" our mortgages.
- Our homes mortgages will be sold all over the world @ 90% profit. We the taxpayer will continue to be responsible fo the $40B/mth leverage.
- The banks will be getting the $40B/mth to buy treasuries issued by the federal reserve
- This little secret agreement is intended to "save" the dollar just a little longer.
- You will now note the continuing rise in things like gold, silver, gasoline, groceries as our purchasing power is lost every month. Soon we will all be unable to pay our mortgages.
- The progressive will then own us and control us as they move to the "new world order" they they desire so much.
- Instead, like the frog in the slowly heating water pot, we do not protest what is happening to us ... all is well, all is well
- We need to throw out of office every politician who has been in over two years.
Yep, this all make sense only if you like the same old ponzi scheme that is our Congress, banking and the federal reserve. Once again they think political action and manipulaton can substitute for actual commerce. The government gives itself far too much credit for being able to set their own messes straight.
Only production increases wealth, only work provides opportunity, only honesty solves problems not running printing presses, setting interest levels.... the truth is that American commerce and industry has no confidence whatever that when they produce there will be any profit or benefit to them.
Bottom line: No one works for nothing and no goods are produced without work. Giving the government ownership of the mortgage industry is simply another socialist take over. We already have seen such takeovers in the car manufacturing, health care industry, Wall street, and now the actual assets of America....
This progressive (socialist/Marxist government) is tightening the knot that can likely never be undone without bloody revolution. Congress and the people just sit and watch it all .... all is well, all is well....
The American people have yet to understand that this is a takeover move.... the libs are smart about all the ways they have for government to get tangled in our society... what is left to be assaulted? We are on very thin ice at the moment ... our Constlitutional Republic is all but gone....
The Federal Reserve on Thursday, in an effort to target stubbornly high unemployment, offered an array of open-ended stimulus programs designed to keep interest rates low until an economic recovery gains significant traction.
In a strategy shift, the Fed’s latest round of quantitative easing, commonly referred to as QE III, will target mortgage backed securities rather than U.S. Treasuries. And, importantly, the Fed said it plans to keep interest rates low even after a recovery gains momentum.
The Fed statement said it “expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”
Federal Reserve Chairman Ben Bernanke hinted recently that Fed policy could soon be tied directly to the U.S. labor markets. Without setting specific targets, the Fed’s announcement did just that.
[....] Fed: Housing Market Is Key Recovery
The new Fed policy suggests that a housing market recovery is key to stimulating labor markets and eventually spurring a full-fledged recovery, Faucher explained. By keeping mortgage rates low -- and possibly pushing them even lower -- through Fed purchases it will hopefully give the fledgling housing recovery some much-needed momentum, he said.
[....] Bernanke, clearly aware of the political ramifications of Fed policy with a presidential election looming, also took pains to explain that asset purchases do not equate to government spending.
The Fed announced a program of mortgage backed securities purchases valued at $40 billion each month. The Fed also said it would extend Operation Twist, a program initiated a year ago designed to shift the central bank’s portfolio toward long-term assets.
“These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative,” the Fed statement said.
In addition, as had been widely predicted, the Fed said historically low interest rates will remain in place through at least mid-2015. Interest rates have been set at a range of 0%-0.25% since December of 2008, during the worst of the recent financial crisis.
[....] Critics of the Fed’s long-term low interest rate policy note that the strategy hurts anyone -- notably retirees -- who has invested in fixed income securities such as bonds. Investment returns on bonds are derived through the bond’s coupon which fluctuates with interest rates. Higher interest rates mean higher coupons, which translate into better returns for investors.
Savings accounts have also been all but useless as a means of deriving income as interest rates have hovered near zero for almost four years.
However, the Federal Reserve hopes that keeping pressure on short and long-term rates will create a multiplier effect. Low rates could encourage businesses to borrow and make investments across the economy. Mortgage rates may also fall, helping to make home purchases more attractive and adding to the burgeoning recovery in that sector.
[....] The Fed chief stressed repeatedly during his press conference that central bank policy alone is not enough to cure high unemployment or ward off a potential recession if the U.S. falls off the so-called fiscal cliff early next year, when dramatic budget cuts and tax increases will occur unless Congress reaches a compromise on government spending and deficit reduction.
