~ 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)
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.
Dear Catherine,
Thank you so much for providing this website and this service. I have read the Dillon Read case, as well as of your background at HUD. You are a true warrior, and from what you have seen and experienced I can see the frustration you must go through. I am very amazed, impressed, and thankful that you do keep us informed and advised as well, as often and as thoroughly as you do. I just want you to know that I for one am very appreciative of what you are doing and I continually check this site. Thanks.
Dear Catherine, I am holding a $100,000.00mFannie Mae Bond and wondering if I will be receiving the interest payments that are due in December and June of each year. This F&F thing makes me nervous because we can not afford to lose any money on this bond. I sometimes feel we should be getting rid of it but as a fixed income source I have no idea where to invest that money. What would you or anyone else reading this do? Sell or hang on?? Thanks for any reply.
MHenkels,
So I guess you get to pay twice. Just lovely, huh?
Flood the market with repos and destroy the property value of even those who made good loans with good credit, and made reasonable bets (given the appearance at the time) based on a market they thought was legit. Now you get to pay for the ‘bailout’ as well.
‘Spiritual’ is fine, but just maybe it’s a good time to store beans and bullets as well.
Katherine,
Count me among those who have been financially ruined. I bought a beautiful old commercial adobe in Santa Fe. It’s now on market & competing with 100,000 sq ft of new space. What seemed impossible to fail has. I love your work & also follow Jim Sinclair at http://www.jsmineset.com.
the only solution for me now is spiritual. They can only factor in what they know. Mexico’s economy is off-grid. The people have their own ways of making it. Perhaps that is something the US will come to know. Whatever the solutions, they will only come if we reject powerlessness in all forms. Desire to live as we choose has been turned into living as they market us to live. There are other ways.
We will find them if we have the will to thrive. keep up the good work, Margret
This has got to be the biggest robbery of the U.S. taxpayer in history! And, of course, it WAS intentional.
A blank government check, backed up (wink, wink) by the U.S. taxpayer, then run up a massive debt in bad mnortage loans, repackaged out to foreign inverstors… well, it’s just about the perfect ripoff scheme. It’s kinda like a welfare state for the super-rich! A license to rob at will.
Add to this the astronomical transfer of wealth in the form of money spent for foreign oil, the massive war debt (all borrowed money) with no end in sight (not to mention the state of social security), prevent collapse by more massive borrowing, and then just tell everyone all is well and the economic numbers are really not all that bad!!! Incredible. And we are probably only seeing the tip of the iceberg. I’m no economics wizard, but I know cooked books when I see them!
There is only one solution to all this: pitchforks and mass hangings in D.C.! But, no, the people are all asleep… We get to choose between Obama or McCain, and we are dumb enough to think we are making a real, significant choice that actually matters! Does any thinking person really believe that those who run the world give a hoot whether it’s Obama or McCain? It’s meaningless.
Catherine, I think the plan is slavery to the NWO. Because the USA can not repay it’s debt with money, it can pay in “performance”. Wolfowitz has been involved is structuring the World Bank to “collect”. The laws are already on the books for the USA to force labor on it’s people. Now they will do that in payment of the debt our leaders intentionally let get out of hand. Well, that is out of hand to you and me, not to them.
It will most likely start by using US troops to enforce UN policies and then will gradually move into the population. Our troops will be on foreign soil and foreign troops will be on US soil. Welcome to the new “Soviet” style communism brought to you by the wonderful Communitarians and Neocons running our government. The sooner we get rid of the IRS, the Federal Reserve and elect peole like Ron Paul to positions of power, we deserve what we get for our apathy.
It takes and active, interested, and moral citizenry to maintain it’s freedom. The people of the USA are none of that anymore. No one even wants to hear any of this.
Dear Catherine,
What are the implications for Gold/silver now that FNM/FRE have been nationalized. The metals are clearly under brutal attack. Physical gold/silver is scarce, yet futres collapse everyday? Please shed a little light if possible? Thank you so much. Love your work.