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Federal National Mortgage Association Message Board

  • emcsw33 emcsw33 Jul 11, 2008 9:27 AM Flag


    Has it occurred to anyone this housing collapse, mortgage foreclosure crisis and financial meltdown was a carefully planned and expertly engineered conspiracy? Let’s connect the dots here and see where the lines intersect. First, all in the name of free trade, globalization and “less government”, the Glass Steagall Act was repealed, the FHA program was allowed to deteriorate to irrelevance, the banking and financial services industry was free rein without regulation but still with the benefit of FDIC and government guarantees. Of course, housing prices exploded as did Americans’ debt levels. Then, before the first signs of financial stress, the bankruptcy laws were changed to make it more difficult for individuals to discharge debt. NOTICE THE BANKRUPTCY REFORM LEFT CORPORATE BANKRUPTCY RULES UNCHANGED. As the housing economy (the only domestic economy the US still had) began to crumble, more than fifty mortgage companies that were originally funded with Wall Street capital lost that capital backing and suffered margin calls. Goldman Sachs, just one of many Investment Banks involved in collateralizing sub-prime debt, was actually shorting the very debt it was selling to clients! Mortgage companies were forced into bankruptcy, bondholders and shareholders were left holding an empty bag and select Wall Street Investment Banks with the help of the government began picking the bones and buying the assets for pennies on the dollar. The Bush Administration and Congress paid lip service to the crisis, but only to buy time while the FED poured hundreds of billions into a beleaguered banking industry and lowered interest rates at the expense of savers and severe inflation. Bear Stearns received a bailout and more homeowners entered foreclosure. Now, fast forward to June 2008 and notice the foreclosure prevention bill was derailed by a Republican Senator from Nevada. What’s so significant about this? Nevada is ground zero for the current foreclosure crisis. One must ask why would a Senator from the state hit hardest by the crisis block intervention unless his action was intentional and also a small part of a very large plan? Now, I suppose there are many out there who would chalk my assessment up to the ratings of a conspiracy nut, but that’s exactly what those who caused this problem are counting upon. Meanwhile, mission accomplished! A major portion of America’s wealth has been transferred into the hands of a small but very select and powerful group while America’s Middle Class has been annihilated. Call me paranoid, but coincidences are very rare and when they really do occur they come in pairs, not in hoards of “incidents” as I have described.

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