The Golden Truth: 1st-Time Homebuyer Tax Credit Loaded With Fraudulent Schemes

Thursday, October 22, 2009

1st-Time Homebuyer Tax Credit Loaded With Fraudulent Schemes

Shouldn't surprise anyone - seems like about 80% of the housing and mortgage market is riddled with interminable fraud. This is reason enough ALONE to not extend the 1st-time homebuyer tax credit. From the Inspector General for Tax Administration:

He told a House Ways and Means oversight subcommittee that they also found 580 taxpayers under the age of 18 who claimed $4 million in first-time home buyer credit. One was 4 years old..."Some of our findings, while preliminary, are somewhat disturbing," George said. Among the most striking instances of fraud include 4-year-olds, non-U.S. citizens and IRS employees inappropriately claiming the benefit, he said. (Here's the link: More Systemic Fraud)

I can think of several other reasons not to extend the tax credit - about $8,000 of them. I'm not sure why my taxes should be used to put someone into a house who has a high probability of defaulting on that house within the first year. The only real beneficiaries are the real estate and mortgage brokers.

3 comments:

EconomicDisconnectThursday, 22 October, 2009
Dave,
Thanks for the GLD report.

Glad you posted this article, I was looking for one (and I can hear NBC Nightly News doing a segment on this in the background). This is a key issue about all these stimulus games; fraud and abuse is rampant. Also, we have no idea how many people that take this credit will have to forfiet it later if they move/get foreclosed in within 3 years. Just say NO to renewal.
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Dave in DenverThursday, 22 October, 2009
hey gyc: in the GLD report, I did not hit every loophole in the prospectus. there are several more. I tried to hit the big ones.

GLD is on gigantic gold leasing operation and that's why it was legally set up the way it was set up. There isn't ANYONE who is entitled to go look at one gram of bullion being held by subcustodians. It's a god damn joke. The Custodian isn't even required to have contractual agreements with the subs.

GLD is eventually going to incinerated just like Enron did. 20 years ago, the SEC would not have approved of the GLD prospectus the way it is written.

Just another example of the balatant fraud in our system.
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EconomicDisconnectThursday, 22 October, 2009
Dave,
No one can hit every loophole in GLD! Great effort and a great report, my thanks.

You should change the 1oz Silver Eagle picture to Mexican Libertads or Canadian Maple Leafs, my two favorites!
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.