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"Just stop paying your mortgage" by Peter Shiff

By Peter Schiff
October 10, 2008

If you are a mortgage holder who is either struggling with crushing payments, bitter for having overpaid for your home during the bubble, or who has extravagantly refinanced when prices were rising, the government's landmark $700 billion bailout package has an important message for you: stop making your mortgage payments . . . immediately. Furthermore, if you believe that with some planning and sacrifice you may be able to meet your mortgage obligations, the government's message is clear: relax, don't bother.

While angry voters have labeled the package as a bailout for Wall Street, it is more akin to a “Get out of Jail Free” card for anyone who acted irresponsibly during the boom. Here's why.

http://www.signonsandiego.com/uniontrib/20081010/news_lz1e10...

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long gone

YOUR land or control of same was stolen back in the 90"s with a SUPREME COURT ruling on private property..
weee

FRAUD on both sides & the MTG.

AMEN ..US responsible parties will be taken down with the sub prime lenders & borrowers..IN more ways than one...EVERYONE does NOT deserve their own home & some cannot handle the responsibility that is associated with a MTG.ALSO , what is up with people in sub prime MTG renting out to other parties ??
weee

The

The real issue here is the selling out of America to foreign bankers and foreigners. I paid my mortgage off so I'm a sucker? Now they'll steal my land when they want to bring in the NWO? Anyone seen The Patriot with Mel Gibson?

Detective Krum Investigates:
http://victory1project.wordpress.com/
http://v1-p.com/

Detective Krum Investigates:
http://victory1project.wordpress.com/

I would be happy just getting my interest on my 30 yr

mortgage reset to something close to the percentage rate that these #*%king bankers are getting in the bailout.

Debbie's picture

It's tongue-in-cheek,

do you really think that someone who was Ron Paul's financial advisor would advise you not to meet your obligations? Whether it's fair or not, it's still your obligation that you agreed to, and you're still responsible.

Debbie

you are

absolutely correct

So if someone defrauds you

So if someone defrauds you into a false obligation you think you are morally obligated to perform the false obligation?

I seriously doubt Ron Paul even believes that but if he says so publicly he of course will be skewered.

Sure Schiff was being tongue and cheek but for the same reason and he was speaking to the public on a level most could understand as evidenced here by folks who should know better still believing they are obligated to a fraudulent contract.

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

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End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

I recognized the 'toungue-in-cheek' aspect...

..but he's not too far from spot-on truth.

Why should we use a different rule book than the Feds? How come when we get into debt, we go bankrupt but they get bailed out and vacation in Club Med? The example the government sets for us goes against everything they are telling us.

"Honor your obligations and contracts.... even if we don't."

I may not know the truth, but I know when I'm being lied to...

I may not know the truth, but I know when I'm being lied to...

Well wall Street is not accountable

Why should the little guy pay? This is the way we win this war. We quit paying them anything.

Come on folks use a little

Come on folks use a little logic it's not an obligation if you were defrauded. First off any contract is null and void if not all facts were disclosed up front, and secondly if the the contract purports to exchanged something that does not really exist however one was led to believe it existed that is fraud therefore there is no contract.

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Why Do You

Fight for something you will never really own anyway? Dont pay. Send these bastards a message. Especially for those with little or no equity and those who owed more than their home was worth. They have us as slaves and it's time we stopped being slaves.

Actually I'm planning to pay

Actually I'm planning to pay off my mortgage with hyperinflated dollars.

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

Debbie's picture

Yes,

me too.

Debbie

Unless you have some gold or

Unless you have some gold or silver to cash in where are you going to get all those hyper inflated dollars?

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Two cases:

1) If you're still employed at all your pay will be at least enough to eat on. It won't inflate as fast as the currency but it will inflate a LOT. The loan price (IF it's a FIXED RATE loan) doesn't inflate. So a year or two in you skip dessert one meal in favor of owning your house free-and-clear.

2) If you have ANYTHING to sell it will bring in some insane number of hyperinflated dollars. Example: Plant some zucchini. Sell one to somebody for enough to pay off the mortgage. See 1).

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

If your employed at all why

If your employed at all why do you think your pay will rise with inflation? Chances are you will be evicted and on the street before you have a chance to pay the house off. There will be a short window of opportunity for a small few to do this but most will be laid off in the time leading up to hyperinflation and not have the opportunity unless they have some gold or silver or other high demand commodity to sell for lots of inflated dollars.

this is why you need a food storage and a trade storage then gold and silver.

Things to trade or sell like:
wheat grains and beans
whisky and cigarettes
ammo guns and gun parts
Fuel and fuel economy devices
Repair and manufacture skills, tools and parts.
Water filters
Silver and gold

These will be the currency eventually

-----
Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Why should anyone feel

Why should anyone feel obligated to pay anyway when even those who saved a down payment and followed the rules were defrauded into trading the fruits of their labor for the next 20-30 years for nothing but a fraudulent entry on a computer screen by someone licensed to commit fraud i.e loan money that does not exist?

The system is going to crash anyways because it is unsustainable, so no matter how moral you think your being if you can get out from under a fraudulent loan why not?

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Don't fall for it.

Yes they've set up a perverse incentive structure. But don't fall for it.

The next step is inflation - very likely hyperinflation. (They can't avoid it if they're "bailing out" with newly-created money.) If you have any employment at all, some of that will be passed on to you in pay increases - if only so you can keep buying food enough to be alert at work. When it inflates by three orders of magnitude or so you can pay off the mortgage with a day's take home pay. (Start a garden now and you can do without store-bought food for more than that. Or buy some gold and later trade it in for a big bundle of nearly-worthless paper - with enough left over after paying the taxes to pay off the mortgage or buy an order of fries.

The banks may be mandated to keep the deadbeats in their houses. But they can structure it so the deadbeats have to turn over all the rest of their assets and much of their future pay in the process. (And maybe title, too, ending up as tenants.) Meanwhile if you maintain your OWN credit rating you'll be in a position to do business with those others who are still able. You'll remain at least a freeman artisan while the deadbeats become serfs.

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Hyperinflation is coming

Hyperinflation is coming anyways no matter what we do. Might as well stop paying into the fraud what ever way you can!

Also the idea that our tax dollars are bing used to bail out wall street etc. is a misnomer . They are printing it and creating it on computer screens because not a single dime of your tax dollars goes for any of it it goes to pay interest on the national debt

-----
Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

Get Prepared!

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

5 * 10^7 In first under two years of German hyperinflation.

German currency was stable at 60 marks/dollar in the first half of 1921 - before the Treaty of Versailles kicked in that August. By November of 1922 the Mark had inflated by a factor of 6e7, nearly eight orders of magnitude in a year and a half.

A loaf of bread is over a dollar now. With that same multiplier it would be just as much over fifty million dollars. Hang in there a bit, make the minimum payment only (as its value drops exponentially). Then pay off the mortgage for less than the price of a slice of toast and own your house free and clear.

Presuming you've got a FIXED rate mortgage, of course. (If you have a variable see if you can refinance RIGHT NOW, while the bankers are still thinking they're collecting single-digit interest rates for loaning free money from the fed.)

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Well,

I might as well buy a house now, tack my debt on that, and then not pay!
Is this a sign? Are they giving us a warning? LOL! I might look into that though, sounds like a great deal!
__________________________________________________________
"The real terrorist's are in this country and they are not planning to blow us up, but rather, take our money, our freedom, and our country."

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."

Better yet:

Better yet, get a FIXED RATE mortgage, tack on all your other debt that you can, and pay it off in a couple years with hyperinflated currency.

When you get more heat burning the bills than you get burning the firewood they'd buy you can peel off a few and pay off the mortgage without even an extra shiver.

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

A modest proposal

Just like Swift's satirical essay "a modest proposal"

Schiff is *not* literally giving this advice,

Schiff *is* criticizing the government.

Ron Paul for Peace!

Actually, if you still have the money to pay your mortgage

then you could possibly challenge it in court and if they don't still have the note you just got a free house and if you lose, you're still paying your mortgage so no real harm.

Or, if you're about to get kicked out of your house, same thing, challenge it in court to get them to produce the paper and if they don't have it -- no more mortgage worries.

But, it would be insane to stop paying. All this theoretical stuff is good and well, but you don't want to be an army of one destroying your life on "principle."

I can't tell if he's being

I can't tell if he's being serious either. If so, it really contradicts his book "Crashproof". However, he didn't really anticipate the US turning communist.

“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw

He is being sarcastic because

He is being sarcastic because in the end he says - Taxpayers, that's us, we do not have it that easy. We can not live off our credit cards.
VI 6 S 6 A6

Republicae's picture

He is simply making the

He is simply making the statement that the bailout amounts to little more than a moral hazard which assist people and corporations to walk away from their obligations.

http://www.1776solution.blogspot.com

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

I don't think he's too far off base here at all

IFF the "way" to "save" the housing sector is to literally buy these bad loans and reduce principal and interest for those who in ordinary times would not have qualified to buy houses at all THEN they will have to address the punative nature of that plan with those who, despite the exorbitantly high cost of housing, continued to act prudently, delaying other purchases and savings to make those loans (hi that's me and probably a lot of DP'ers). If they fail to do so....Schiff is correct-stop paying, get sold to the Gov't. I think this is really the point he's trying to make-the current plan is encouraging more of the behavior that got us in the mess.

On another note: I spoke with a woman today who has just been contacted by her real estate agent (apparently they opted not to buy in the last couple years as they couldn't get a fixed loan with their credit score). She was told to run out and buy a home now. That the sub-prime loan could be placed with near nothing down but she had better hurry. I guess with the Gov't intervention, it's possible again to write those loans in an effort to move the foreclosures to new persons who will essentially be foreclosed on (or more likely saved by the taxpayer). It's insane.

Another sucker play. The

Another sucker play.

The time to run out and buy a home is when the value crashes. It's not crashed yet. It's still bouncing down the cliff with the banks and government trying to shove it back up.

What they'll end up doing is inflating the money until the PRICE is back up while the VALUE is still down to somewhere sane.

But if you can get a FIXED RATE loan, go for it. Then your loan doesn't balloon with the inflation and you get to pay it off with debased currency.

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

To pete

You first. You'll be a cellmate for your dad. Maybe then you can really inspire some change.