The Golden Truth: New Home Sales Much Weaker Than Expected...and

Wednesday, October 28, 2009

New Home Sales Much Weaker Than Expected...and

Mortgage applications for purchases and refinancings were much lower than expected - what was unexpected was that the Mortgage Bankers Association had no comment on this. I can hear Bernanke cranking up his printing press and getting his infamously nefarious money-dropping helicopters (extreme posthumous apologies to Milton Friedman) ready to take off over America again.

Now that Obama has satiated Wall Street/AIG's thirst for huge taxpayer-financed bonuses, I'm assuming we can expect Stimulus Part Deux, which will again be used by State Governors to take care of their special interest pet projects and sprinkle money dust on Obama's Government-entitled/dependent support base.

Meanwhile, the Government housing subsidy program has stimulated a surge in mortgage fraud (hat tip to Clusterstock.com):

The Property Valuation Fraud Risk Index is up 25% from the previous quarter and up 46% from the year-ago quarter, indicating a shift toward fraudulent schemes involving short sales, real estate-owned inventories and refinancings by borrowers with equity impaired by falling property values. (here's the link: MORTGAGE FRAUD SPIKES)

I would appear that Obama's taxpayer-funded homebuyer credit is riddled with fraud in every aspect of the home sales process, from real estate broker puffery to appraisals, to mortgage fraud - and even outright qualification fraud.

3 comments:

EconomicDisconnectWednesday, 28 October, 2009
"FRAUD....Its all that left when the people are tapped out"
Poster for investment in US bonds in my opinion.

Between the GMAC 3rd spin at free money, the renewal (maybe) of the home tax credit, and various other things I cannot believe "this sucker has not gone down", to paraphrase.
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Dave in DenverWednesday, 28 October, 2009
As long as Bernanke keeps his helicopters full of cash to drop, this sucker ain't goin' down no matter how absurd the valuations are.

He'll print the dollar into oblivion before he lets the system collapse, in my opinion.
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EconomicDisconnectWednesday, 28 October, 2009
Well , not this week, he has bond sales to close. Friday and Monday we will resume trajectory.
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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.