U.S. Government Endorses Full Scale Socialism

Comrades, if the U.S. Government continues down the path currently underway, the United States will be much closer to a completely socialist republic than even our friends in Russia. Congress has zero factual basis for considering a complete bank bail out. The special interest dollars are flying around Washington to ensure that you, the taxpayer, bail out private business.

The United States Federal Government is considering a total bank bail out. This action is essentially legal plunder and will strip your liberty from you by increasing the collective national debt. The treatment for this economic event is equal to treating the symptoms of a disease and not the root cause. The root cause of the banking crisis is massive systemic mortgage fraud, money laundering, postal fraud, wire fraud, and tax evasion. The individuals partaking in this fraud are those individuals that do not value their credit because they do not need it long term. In essence, they are short term residents in the United States. The practice continues to happen on a daily, hourly, and minute by minute basis in many of the major cities across the country. Thousands people spread across the country but connected to very tightly knit community groups have taught one another how to commit mortgage fraud and game the banks into loaning money on real estate that is over appraised and valued at prices much higher than a property is truly worth in an arms length transaction (unless there is deceptive mortgage fraud).

The sellers, typically developers, of this real estate are using the transactions to get out of the debt of construction loans. The buyers are using the transactions to obtain "cash back" at the closings that is undisclosed to the banks. Attorneys are helping this process continue. In fact, the typical transaction does not involve a buyers attorney for a very good reason. Appraisers, real estate agents, and other professionals are all playing an active role in making these types of real estate transactions happen. The identification of fraudulent mortgages is so simple for banks to identify within 60 days after the initial transaction. The borrower or mortgagee doesn't even make the first mortgage payment. The purpose of commencing the transaction was for the purpose of obtaining tens of thousands of dollars of cash, not real estate. The real estate is simply a vehicle by which to generate thousands of dollars in "cash back" money at the closing. The cash transaction is completely undisclosed to the banks.

A taxpayer funded bail out of the banks is simply a reward for the absolute worst behavior on behalf of various lending institutions and mortgage brokers. The economy is suffering from massive mortgage fraud and the economic risk is being spread to all taxpayers. Welcome to socialism. Do not let the government fool you. They do not know the root cause of this problem. The door to sub prime lending and option arm categories of loans was created in 1994 during the Clinton administration. The Clinton administration proclaimed that more lower income people and less wealthy residents of the United States should be able "participate in the American Dream". The result of the policy became millions of newly arrived residents with very low incomes could now borrow far in excess of their capability to pay the loans back. When George Bush came into office he publicly noted multiple times that real estate was fueling the economy, it was. However, the price increase s during the period between 2000 and 2006 was because millions of newly arrived buyers were now in the market. Without proper income substantiation and a visa as long as their mortgage term, they should not have been able to borrow. The banks did NOT do their due diligence because government policy did not require them to ensure the borrowers income.

Let me make this simple.

A. Real estate developer builds a building with funds loaned from bank.
B. Developer can't sell due to market forces currently in play, circa 2006.
C. Developer offers to first time home buyer and new resident to the USA thousands of dollars "cash back" at closing or an offer to pay the down payment (this alone constitutes mortgage fraud)
D. Buyer purchases multiple properties at the same time to increase amount of cash in return and to prevent banks from seeing quantity of transactions.
E. Buyer accumulates cash from each transaction and, once received, sends it out of the country.
F. Buyer places tenant in property and collects cash for rents.
G. Buyer only pays homeowner association fees to prevent seizure of property by the association of homeowners.
H. Buyer never makes payment to bank.
I. Buyer either attempts to "short sell" the property to new buyer or they allow the foreclosure to commence. Either way the bank absorbs the loss.
J. Buyer takes all rents, cash back, and and holds it in cash. They do not declare it as income because it's not visible to the IRS.

Meanwhile back at the farm, the U.S. tax payer is being FORCED to pay for the unethical behavior of the borrower and lender. The banks need to be forced to fail. They need to lose their wealth, reputations, and the workers promoting this activity need to lose their jobs. The final result is well deserved. The borrower needs to go to prison and then be deported, if appropriate.

Please contact your Congressman and Senators by urging them to let the banks fail. The trillions of dollars should go toward an increase of FBI investigators in order to prosecute these perpetrators. Congress should also increase postal service investigators. Finally the banks and lending institutions should stop the practice of giving credit to people that do NOT have valid work permits issued from the Department of Homeland Security.

What you have just read is the real story that the mainstream media will not investigate or air. Corporate media and congress would like to blame wall street for actions that are happening in the neighborhoods and high-rises of every major city in the United States of America. Take action now!

REAL ESTATE NEWS