Friday, March 20, 2009

Government and Finance

I am not really sure why I am starting this blog besides as an outlet. "So read at your own risk" is the implied contract you agree to by continuing to read. Many subjects come to mind as ways to start this snowball, brainstorm is my preferred method for now I think.
When I voted for this president I had faith in his ability to communicate with the people which was very necessary at the time. Now I am pretty sure he spends a lot of time doing just that. I am not sure if his focus is really where it belongs... it seems like a discourse instead of dialog. I feel he sends plenty of messages to the public about the things which are being focused on, but I am not convinced the issues are being addressed with the necessary amount of input from the people who are actually affected. I see the focus on the "head" or command structure and missing the people of the "body" of the nation. He seems to be playing into the hands of the control structure while in the background something is being set up to undermine the messages being relayed to the people. Is this just the next step toward police state and the structured metering of population maintaining by controlling bodies and powerful entities?
I know the "housing collapse" was a structured collapse. It was arranged from the top down and the timing was somewhat accounted for. It is far too convenient that the market collapses when the population is starting to gain headway on technological evolution and gaining monetary and public sway. Companies before the burst were able to decide their own direction and go in that direction. Part of the major flaw to a publicly traded "Stock Market" is the possibility of manipulation by numerous means. So as to say
A company starts and does really well selling goods to the public, so good they can't keep production up to pace with purchases and have to grow faster than they can afford... setting up the situation for "stock market" entrance. Being publicly traded/funded, they are then able to grow to fit the situation. The company continues to grow and eventually can afford to do side projects. Some of which don't fit with the business model of the "Old Money" structures in the stock market (such as to undermine the oil industry stranglehold on a completely outdated technology, the car market). The fact that such a company is publicly traded makes that company vulnerable to a vast number of possible interruptions. Some possible interruptions are cooking the books of a competitor so as to transfer loyalties out of the stock value, raising the price of some input product used by the company which makes it profitable, or debasing the ability of investors to freely invest due to credit availability and/or equity based capitol input (people were borrowing against their house values {sometimes} to generate a greater gain by placing that equity money into a company or pet project with greater or near equivalent growth potential) ...... The housing finance community was forced into generating loans to "risky borrowers" by governing bodies. This practice can be absorbed to a certain calculable degree according to risk potential. That risk potential was accounted for and the degree to which loans were required to be generated far outgrew the possible market absorption rate of defaulting loans generated for these risky borrowers. Therefore the situation was set up by the governing bodies to do exactly as it did. This situation was intended to collapse just as it did. .... Knowing that this set up was taking place, "Old Money" has the ability to pad against such pending disasters and even post a gain accordingly by setting up to take advantage of the current valuing system which is based on real property or real estate. Many advantages would be realized by such a "disaster". By shuffling money into safe industry knowing of the coming housing collapse would make for an ideal situation for "fire sale" purchasing of small companies and real estate/houses and great deals of land. These steps would have the ability to increase the 'leveraging power' of the "Old Money" so that they can set up to "redirect" the market in the coming future in whatever direction they so choose.
Part of the reason this is completely believable is because I could see the housing collapse coming as of about 2001 when the ARM loan industry was coming into full swing. The housing loan requirements were being manipulated at the same time, generating a great set-up for large numbers of defaulting loans. At the same time the APR was going lower, even though it should have been rising according to economics principles. The lowering of the APR made it more appealing to enter the ARM loan system to borrow against housing values even if it wasn't necessary, just to loosen up liquid asset finances as a homeowner (almost everybody bought into it because of the state of continued stable growth in America).
I am curious as to whether the "financial bailout" money is going toward the "Old Money" establishments under the pretense of their ability to handle money in order to generate stable growth historically. Is this really just money for the "Old Money" to buy defaulted homes, loans, businesses and Real Estate in order to leverage the market? The set up is convenient for the receivers of bailout money to buy up defaulted/undervalued property and use it to leverage future growth and indentured servitude.
The "American Dream" is to own a home (one of them at least) and now lots of people who had good credit just got swindled out of their home and have had their credit history ruined due to manipulation in the top end of the market by the overseeing bodies (Fannie Mae, Freddie Mac, FHA). Their equity gone and their possible interest rate higher than when they had a good credit history, they are in a place to be taken advantage of by the bailout money they provided by paying their taxes during the boom/bubble. The banks who advised them into this situation stand to gain double from the situation