Thomas Jefferson proven right, again

[Dequeant]

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020610


I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson - letter to the Secretary of the Treasury Albert Gallatin (1802).

What happened.......inflated housing bubble, then the deflation......now banks gaining ownership of homes across the U.S.

[JordanQ72]

Banks don't keep foreclosed homes around sitting on balance sheets. They're sold off very quickly.

[Mystile]

Thomas Jefferson was a wise, wise man. He's probably turning in his grave right now. Everything he warned against....

[affa]

http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020610



What happened.......inflated housing bubble, then the deflation......now banks gaining ownership of homes across the U.S.

the fed happened. again.

[Paulitician]

That describes the Great Depression quite prophetically. However, Bernanke said he'd do whatever it takes to avoid another deflationary depression like in the 1930's. So instead of deflation being the problem this time, it will be hyperinflation.

[Mystile]

That describes the Great Depression quite prophetically. However, Bernanke said he'd do whatever it takes to avoid another deflationary depression like in the 1930's. So instead of deflation being the problem this time, it will be hyperinflation.

and then Americans will never be travel or live overseas :(

[Brian4Liberty]

Banks don't keep foreclosed homes around sitting on balance sheets. They're sold off very quickly.

Only when they can sell them. They are holding a lot of them now...

[JordanQ72]

Only when they can sell them. They are holding a lot of them now...

In many states they legally don't have a choice. They have to conduct a public auction and eat any losses.

[Joe3113]

Hyperinflation is already happening. Interest rates keep getting lower.

We all know why the elite need the fed. They need to create money supply expansions and then collapse (via deflation or hyperinflation), at which point they buy everything up.

That is what Thomas Jefferson was referring to. He was my favorite of all the US Founding Fathers. One of the most intelligent men in history.

This concept is so easy, but the sheeple are all stupid. They think they can get money for free, without there being a risk.

This is our cause. We must never give up to the scum international banking elitists.

[robert4rp08]

Canadians are probably buying up U.S. houses

[fxmercenary]

Canadians are probably buying up U.S. houses

actually European vacationers are buying up all the homes in my town, they are EVERYWHERE.

I counter 30 for sale signs in my neighborhood today, there are about 90 homes here, thats 33% for sale.

And this is a pretty wealthy town too.

CNN Money today said thats its a "good Idea" to just up and leave your home if you are stretching your income to pay for your home. Just stop paying for it they suggest... :eek:

[kyleAF]

Banks don't keep foreclosed homes around sitting on balance sheets. They're sold off very quickly.

Not in a declining market, they aren't. Otherwise the owners would be doing that. The banks are gonna hurt a lot before this is all over.

[JordanQ72]

Not in a declining market, they aren't. Otherwise the owners would be doing that. The banks are gonna hurt a lot before this is all over.

As I said before, in some places they're even required by law to conduct a public auction. It doesn't matter if they have to sell it at a loss, that's their problem. An owner is free to do this too. Trust me, you'll find a buyer if you go low enough. I've gone to these auctions before. Yes, yes, I know, I'm scum of the earth and stealing housing from needy families, whatever, I've heard it all before.

[OhioMichael]

Hyperinflation is already happening. .

Also Stagflation.

[OhioMichael]

bump for a great quote!

[Brian4Liberty]

As I said before, in some places they're even required by law to conduct a public auction. It doesn't matter if they have to sell it at a loss, that's their problem. An owner is free to do this too. Trust me, you'll find a buyer if you go low enough. I've gone to these auctions before. Yes, yes, I know, I'm scum of the earth and stealing housing from needy families, whatever, I've heard it all before.

In California, they hold the auctions, but they set a minimum bid that no one will pay (probably the amount of the mortgage). They don't sell at a loss, and they are holding a lot property right now...

[Brian4Liberty]

actually European vacationers are buying up all the homes in my town, they are EVERYWHERE.

Dropping dollar means property is just cheaper for them. That was one of the major fuels for the housing bubble in the first place. Dollar dropped, foreign money poured in. Don't forget that Hong Kong went back to China, and there was a lot of money looking to get out of there too.

Investment fell off the last year due to the decline. It's mostly just a commodity to them anyway, and when it goes down, they don't want to hold. And they don't want to buy until they think it's the bottom.

[JordanQ72]

In California, they hold the auctions, but they set a minimum bid that no one will pay (probably the amount of the mortgage). They don't sell at a loss, and they are holding a lot property right now...

Admittedly I've never had real estate dealings in California, but where I'm from you can be liable and in debt to a creditor even post foreclosure if the auction doesn't happen to even cover the outstanding loan amount. Maybe California has some laws concerning foreclosures giving you a clean slate with banks, hence no bank would sell at a loss, I don't know though.