Financial Sense: The 4Rs: Realty Reality Recommended Reading 10/14/2004

GLOBAL REAL ESTATE MARKETS FORUM
4Rs: Realty Reality Recommended Reading
with Editorial Comment

REALTY REALITY FSO ARCHIVES
October 14, 2004

See: http://www.scoop.co.nz/mason/stories/HL0405/S00268.htm
Transcript of Puplava interview with Catherine Austin Fitts
Also provides the actual taped interview link with Big Jim!

See: http://www.whereisthemoney.org/hotseat/stanleysporkin.htm
Stanley Sporkin Hotseat

See: http://www.conspiracyplanet.com/channel.cfm?channelid=2&contentid=1600&page=1
Conspiracy Planet's: New Bush-Cheney Disaster: Fannie Mae/Freddy Mac

See: http://www.fdic.gov/bank/statistical/stats/2004jun/industry.html
FDIC, Statistics at a Glance, June 30, 2004

See: Ole Man Ozark's Musings on Money and Banking
Musings on Money and Banking - the loan to deposit ratio [pdf]
I'd Walk a Mile for a CAMEL [pdf]

EDITOR'S COMMENTS
by Ole Bear

Foreclosures, Fannie Mae, the Loan Deposit Ratio, the Black Budget Economy,
and the Manipulation of Mortgage and Financial Markets

I received last evening a new pen from Ole Man Ozark on the current loan to deposit ratio which is 1.06%. Typically in the old days regulators went into heart arrhythmia if it got over 80% at a lending institution. If you hop to the FDIC link, take Total Loan $s and divide by Domestic Deposits $s and you get 1.0599 or 1.06%. What does this all mean Mr. Natural?

We are witness to the greatest pump and dump in real estate markets in 400 years of global economic history. The above links are some major pieces in a global markets puzzle on understanding the real estate markets pump and dump. All of this stuff is inter and intra-related. Fitts comments in the interview with Jim Puplava that the gold market manipulation is related to the other markets, including real estate. Why of course it is! This quote from Miss Fitts is priceless:

And the problem we have as investors is ... you know, one of my favorite people, and he's been on your show before, is Bill Murphy and the guys at GATA. They've done a terrific job of documenting the manipulation in the gold markets. And for many years, I've tried to get Bill to understand that the manipulation in the gold markets that he's dealing with is the same people and same players that are manipulating the mortgage markets and the mortgage bubble. And they can do it, whether they do it in the gold market or the mortgage markets because they have access to a Governmental apparatus and financing apparatus which is non-accountable and not transparent.

On immigration and the pipe dream of 100% homeownership Miss Fitts has this to say:

You can flood the country with immigrants who can buy up real estate that you finance at the bottom, but at some point something's got to give in the middle. I mean, if you shrink and collapse the middle class, they're going to default on their mortgages.

This is exactly what's happening, and why the Loan to Deposit Ratio is out of whack. The middle class are being squeezed out of the market, and the NAFTA thing is sending the middle class jobs over-seas. That's exactly what the DemoPublicans want in Washington. This is all part of the real estate pump and dump.

In reading Conspiracy Planet's New Bush-Cheney Disaster: Fannie Mae/Freddy Mac, being very familiar with the Sporkin Hotseat at www.whereisthemoney.org, several items caught my attention:

BFLAP (Bush Fantasy Land Accounting) ru[l]es the day again. They used it instead of GAAP, and so Fannie Mae and Freddie Mac will be the next Bush Cheney fraud disaster. The coverup man for the debt ridden GSE is longtime Bush Cabalist Stanley Sporkin, former bagman-judge, former head of the SEC and former general counsel for the CIA during the Bill Casey era, reports government whistleblower Al Martin (www.almartinraw.com).
The Bush-Cheney Regime used Fannie and Freddie when they first got into office by loosening credit quality standards for would-be mortgage applicants, in order to increase the number of minority home ownership in the United States. They successfully accomplished this, and the Bush-Cheney regime has been using this as an election issue, touting how many new Black and Latino homeowners have been created under the Bush-Cheney Regime.
A) The debt of Fannie and Freddie, under the Bush-Cheney regime, has risen by an aggregate of $9 trillion.

B) They have lost one third of their entire capital base through losses taken in derivative trading and through a record foreclosure rate within their mortgage portfolios. [Editor's Emphasis!]

C) Their mortgage portfolio credit quality now is at junk status, whereas it was investment grade when the Bush-Cheney regime came into office. In other words, the Bush-Cheney Regime has sucked all the political gravy they can out of Fannie Mae and Freddie Mac by loosening mortgage application standards to allow a big increase in minority home ownership in the United States in an effort to attract minority votes.

All of this of course further illustrates the great real estate pump and dump. What is interesting is that this is the first essay that I have seen or read that confirms my belief from my file dossiers on mortgage and appraisal fraud, that the GSEs have blown through their loan loss reserves and are bleeding on foreclosures all across America on fraudulently prepared and bogus inflated realty valuation appraisals. There is literally GSE blood in the streets all across the USA. This is another reason why the Loan to Deposit Ratio is so out of whack with prudent lending. The sad thing is 99% of the realty valuation experts out there are honest and decent hard working men and women. It is a few bad apples that contributed to the fraud tango dance.

If Rhinestone Cowboy Sporkin is going to clean up the mess at the GSEs, he probably needs a crash course on mopping up large amounts of blood in the streets from the American Red Cross. They just might be able to salvage some of it for their more worthy clientele. Perhaps that Bernanke Kool Kat at the NY FED will let the Rhinestone Cowboy use his fleet of jet helicopters to deliver the goods to the Red Cross quickly, and efficiently, if they take the printing presses off of 'em?