~ Click here to view the full Freddie and Fannie Become Penny Stocks article.

Overwhelming American communities with mortgage, auto and credit card debt as we shift manufacturing and research capacity, jobs and approximately $10 trillion of capital offshore—much of it by illegal means— has been the US economic strategy since 1996.

This was a strategy that depended on massive government spending and market intervention. It was intentionally designed to leave us where we are now. There clearly is a plan. I am not privy too it. However, what is happening is not an accident. The people who run the world are plenty smart. Originating a great deal more debt than anyone could carry, let alone pay back always ends in failure and bankruptcy of someone or something. So Fannie and Freddie’s failure or nationalization was always in the cards – it was a matter of when.

If your goal is total centralized control, this is a great way to achieve it. Between Freddie, Fannie, Ginnie Mae, FHA, VA and the Federal Home Loan Bank Board, the federal government no longer regulates or provides credit to the residential mortgage market – it is the market.

Combined with the digitization of the mortgage credit scoring, origination and servicing process, the implications for privacy and personal freedom are simply stupefying. And the best part is that this can be described as the government “helping.”

I have described the fundamental US strategy on numerous occasions over the years. It was my misfortune to try to propose an alternative strategy. When that made me a target of a legal and economic “hit,” I attempted to warn people of the dangers. Those who heeded those warnings avoided direct harm from the burst in the housing bubble, including the drop in Freddie and Fannie shares to penny stocks. While living with the horror and grief of realizing that most would not heed those warnings, I concluded that we were experiencing a financial coup d’etat.

Here is a sample of pieces that I have written which describe the intentional lack of sustainability in the US mortgage market and economy:

The Story of Edgewood Technology Services (Oct 1999)

The Hamilton Litigation (Dec 1999)

The Myth of the Rule of Law (Nov 2001)

Personal Experience with FHA-HUD (June 2003)

America’s Black Budget and Manipulation of Mortgage and Financial Markets (May 2004)

Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits (April 2006)

The Housing and Economic Recovery Act of 2008 (Aug 2008)

The Stanley Sporkin Hotseat

The Missing Money (2000)

Here are two pieces that also describe my personal process:

Where is the Collateral? (Oct 2003)

So, Where is the Collateral (July 2004)

I describe the history of governmental mortgage fraud in Part I of Solari Audio Seminar Navigate the Housing Bubble. If you are interested in the deeper story, I recommend this one.

All parts of this 6-part post: (I) (II) (III) (IV) (V) (VI)