The Housing and Economic Recovery Act of 2008:
An Analysis by Catherine Austin Fitts
~ Click here for the full article.
If there is to be any blessing in this housing bill, perhaps it will be to so offend, so disgust those of us who are awake that the process of withdrawing from the old and reinvesting in the new models will accelerate. And maybe the smartest and most creative among us will be willing to invest the time and energy it takes to reinvent a model that incorporates what we like to think are traditional American values. These are the values that are enduring and make us proud to be Americans still. There is no hint of these values in the housing bill. There is, however, an abundance of them in the hearts and minds of the people.
- Housing Bill, Part I – Overview
- Housing Bill Part II – Nation State or Investment Syndicate?
- Housing Bill, Part III – Your House Is Bigger than My House
- Housing Bill, Part IV – The Profits of Playing Ball
- Housing Bill, Part V – Where Is the Collateral?
- Housing Bill, Part VI – The Tapeworm Corporation Comes Out of the Closet
- Housing Bill, Part VII – Andrew Cuomo Owes Us $5 Trillion
- Housing Bill, Part VIII – The Two Great Financial Mysteries of Our Time: Missing Money and Collateral Fraud
- Housing Bill, Part IX – In the Destruction of the Old, Let There Be the Creation of the New
Catherine Austin Fitts served as Assistant Secretary of Housing and Federal Housing Commissioner in the first Bush Administration. Her company Hamilton Securities Group served as lead financial advisor to the Federal Housing Administration during the Clinton Administration. She is a former managing director and member of the board of the Wall Street investment bank Dillon, Read & Co. Inc.
Catherine:
I have sent several to your site, as the material is powerful and quite a lot to take in. If someone had a small amount of $ and already paid off their mortgage, owns their car outright, and has minimal debt, what is the safest place to put that $? Euros? Buy land? Trust the family stock broker? Bonds? Hide it under the bed in a safe? Other? Every “authority” has a different view, and since real estate is losing value, and the U.S. dollar is losing value, and the magnitude of the nation’s debt may eviscerate other holdings, what does one do in such times? I am a freelance writer who’s lived on about $12,000 a year, raised my children, kept a good credit rating, and just came into a small nest egg as a result of the loss of both parents (within a 2 year time frame). If this is too personal to warrant an answer, I understand. Best wishes, and thank you for having the courage to tell it like it is in an area that is so complex for most of us to grasp.
Best wishes, Sioux Rose
Catherine –
I was chatting with my brother-in-law at a party last night about the Ginnie, Freddie debacle. He is an assistant fiance director for an affluent city here in North Texas. He said that this housing bill does not really increase the national debt by $5 trillion which I countered with, “the increase in debt is implicit.” The conversation moved to him telling me that he is getting his city completely out of Ginnie and Freddie as those bonds come due. And he said that most other cities are doing the same thing. I suppose this is bound to place incredible pressure on these two institutions. What was really insightful was seeing the fear in his eyes when I suggested that those institutions, along with all the others (Bear Sterns, etc.) should fail without intervention. He responded, predictably, with “They are too big to fail.”
I’m wondering what I might offer to him to retool his view this and other related financial issues. He has also told me that, by law, his city is not allowed to invest in commodities, or any investment that is not AAA bond related or similar instruments.
James
Michael:
Yes, it can indeed seem a bit overwhelming at times. One of my favorite stories is the story of Gideon in the old testament. Gideon throws the Midianites out of Israel. It seems the Midianites were so without a higher intelligence and so deeply evil and distrustful that they killed themselves.
Time to invoke the magic that comes in dangerous times…
Optimistic,
Catherine
I cannot fathom Catherine’s ability to stay level headed in spite of the ugly, gloomy truth. It’s a very lonely place for me. The only thing more offensive than the level of deceit and corruption within our most powerful institutions is the potential for it to get much, much worse.
When you realize that the events of 9/11 were conveniently & synchronistically stacked in favor of those (no names) who would benefit, you begin to see a picture of the real terrorists we are facing. These cannibals who seemingly self devour were really never one of us to begin with. Their mantra has never been one of compassion… they are blind to the concept.
The problem is that commercial jets and anthrax are ploys. These folks have real infectious weapons that will silence us all before a shot is fired. They hold the golden tickets to move “downstairs” and can then claim whatever they want once it’s nice and quite. The brilliant part?… no one will be here to contest who the “terrorists” was that silenced America.
The only true hope I still hold is that the “times and half times are at an end” and that higher forces will intervene (whatever that means). It will take a new, more mysterious power of synchronicity to fold these folks before they are through with us.
~Hopeless
What an informative series of related articles; and so helpful in providing a basis for grasping what has been underway. On a personal level, I never had much interest in economics or finance until a small inheritance just came my way. Accustomed to living on about $11,000 a year as a freelance writer (who managed to keep a good credit rating while raising two dynamic daughters as a single Mom) the ways and wherefores of managing money now “knock.” And what a time to be entrusted with a modest nest egg I’d like to be able to leave for my children and grandchildren at some point.
I’ve spoken to the family broker, my daughter’s boyfriend who makes a living as a financial advisor, a friend who owns over twenty refurbished properties, and others and NO ONE agrees on a wisdom-based strategy because as everyone seems to notice, all of the old rules to the game have broken down. It’s a new paradigm. What once was considered a “solid” investment in real estate, can now not be counted on, since housing prices in most regions are falling. Indeed, the percentage rate of artificially boosted home values over the l980’s & l990’s played a role in this bubble bursting, as do all the factors carefully mentioned by Ms. Fitts. (This is a topic worthy of having a FITT over!) Some bet on gold, but its price is so high; others say to diversify and use mutual funds, while some see the dollar in such a precarious state as to merit the next Great Depression. Some say to hide money under the mattress, or transfer funds to the Euro. I feel like Alice sliding down the rabbit hole, in this case, one dug by bankers and the fed with the help of unscrupulous folks across the housing hub.
Is there any practical advice for retaining one’s assets in the now? I knew there was corruption, and I was not one to let it idly pass that so many billions disappeared in Iraq… meanwhile the Fox news crowd is taught to hate illegal aliens and/or welfare recipients, as if these disadvantaged thousands make anywhere near the dent in the US (virtually raped) treasury as the forces using all the devious measures Ms. Fitts aptly explains, to expunge our net treasure of all virtual and actual Worth. If it’s just fiat money, like a game of monopoly, I guess all consent to continue playing or be played, till the roll of the dice is no longer made possible.
Jeff:
Excellent comment and question. I was referring to the model expressed in the bill. I did not mean for that to predict what would happen.
You are correct, the push for nationalization is growing. I am hoping to comment on that in the next week,
Catherine
Nando, yes, indeed! What a wonderful comment. Thanks so much.