The 4Rs: Realty Reality Recommended Reading 11/23/2004

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

REALTY REALITY FSO ARCHIVES
November 23, 2004

Bubbles in Real Estate & The Parallax View
by Professor Hans Sennholz
See: link

Another View of How It Happened
by Richard Brawn, CCRA, MPA
See: link

EDITOR'S COMMENTS
by Ole Bear

Bubbles in Real Estate and The Parallax View

I love it when I read two excellent and great parallel articles on the same day. I always enjoy reading Professor Sennholz. It is always a treat to feature an essay from the realm of FSO as well, such as Richard Brawn's Another View of How It Happened. Bubbles in Real Estate go hand in hand with Another View. A review of these two essays is not merited here -- they succinctly speak for themselves. Both authors concern themselves with the topic of debt and the Federal Reserve Fraud, and the implications on real estate as an inflating debt-backed "wealth effect" animal, which is similar to our debt backed legal tender fiat paper money system.

My parallax view is that I would just as soon that my real estate did not inflate in price, and that it's value, like our current money system would maintain a stable value like gold and silver [through the ages, I am most aware of www.gata.org]. Increasing real estate prices [which is nothing more than witness to the current monetary policy destruction by the FED through creating more of the stuff out of thin air in the Mandrake Mechanism] allows more debt to be burdened onto escalating realty prices. Price is not value. Value is not market price. Real estate is one big Ponzi Scheme con game. Professor Sennholz uses the very nasty word "depression" in his essay referring to micro real estate markets, when he referenced the last steel plant closing in Youngstown, Ohio. When we understand that the FED can target any industry or profession [steel, agriculture, real estate valuation, i.e. realty appraisers, among others] exercising its monetary policy and financial death grip on a manipulated financial system, we blow away the smoke and mirror obfuscations of "monetary policy" by the Minions and Green Eggs and Ham at the FED. Improved real estate currently is, always has been, and forever will be a depreciating physical asset, which cannot be moved [without considerable expense].

Bucklin Establishes the Parallax View

From 1984 to 1986 I performed nearly 300 realty appraisals for the FDIC when they shut down the fraudulent dealings of the Bank of Bucklin, Linn County, Missouri in the North Central part of the Show Me State in the US Highway 36 corridor west of the US Highway 63 North corridor. This agricultural sector in the early 1980s was already in a severe agricultural recession. When the source of free money was shut off, like turning off the outside water spicket to the dying grass colored a medium green brown, this micro market lapsed into a severe Micro Realty Market Depression [dead brown grass, also infested with the Fungus Among-Us]. The market became foreclosure sales, and prices paid for realty nose-dived over the course of time with no bottom in sight! There was no true open market. Further, the monetary policy of the FDIC, much like the Resolution Trust Corporation, born out of the S&L Scam to follow later, added further to the micro realty market implosion in the Bucklin micro realty market. The Bank of Bucklin is now a Bank of America. Yaaaaa-Whoooooo! Although my family always talked about the Great Depression in the 1930s in the Mississippi Delta, I learned first hand what a monetary and real estate depression really was.

I saw the parallax view in the eyes of the property owners I inspected around Bucklin, Missouri. I saw first-hand proud Missouri folks who had the light taken out of their eyes. They could not make ends meet. They were going to lose their homes and businesses, if they could not refinance for a cash-out to the FDIC based on the depressed market prices for their realty. I was met at the front door by the property owner with a shot-gun more than once. Luckily the FDIC representative accompanied me on all property inspections. Eyes dulled and glazed by several years of financial manipulation of the agricultural markets by the FED, had taken away hope, fortunes, and the will to go on. Being covered in debt with promises by big government that things will get better, doesn't make it easy, when at the same time it is taking away your life, liberty, and your pursuit of happiness, including your personal and real property. It [FED and monetary policy] acts to destroy one's faith in a Supreme Being, and if you are Christian, in Jesus Christ. From this historical perspective, I view the Federal Reserve as an Anti-Christ -- knowing what it can do to the soul of The Republic, and to its people on Main Street America. It breeds insider trading, predatory lending, insider foreclosure, and mortgage servicing fraud to boot in this great wealth transfer in real estate. The banking cartel, and its use of appraisal management companies, coupled with the GSE money pump to Wall Street are part of the wealth transfer mechanism from Main Street American to Wall Street. Control over and manipulation of the realty valuation industry now, is part of the subterfuge combined with rising property prices, at the expense of the destruction of our current monetary system. Ben Franklin said in his Poor Richard's Almanac, "Neither a lender, nor a borrower be." Ben was most correct.

I will never forget this experience working for the FDIC. In my youth, I considered it a Lark at the time to learn a new market. Now, nearly 20 years later, the impact of what I learned is just starting to hit me like Ten Forty-ton Trans-Continental Trains Traveling from Toledo to Tucson at 150 miles an hour! Ben Franklin said in his Poor Richard's Almanac, "Neither a lender, nor a borrower be." Ben was most correct. Ben Franklin said in his Poor Richard's Almanac, "Neither a lender, nor a borrower be." Ben was most correct. Ben Franklin said in his Poor Richard's Almanac, "Neither a lender, nor a borrower be." Ben was most correct.

I am also a composer and musician. When Mozart wrote something he liked, he repeated it like crazy. That's why I don't have much use for Mozart.... 'ceptin' the 40th Symphony, Eine Kleine Nactmusik, his Operas.... the Fantasy in D-Minor, and the 21st and 23rd Piano Concertoes....

Ben Franklin said in his Poor Richard's Almanac, "Neither a lender, nor a borrower be." Ben was most correct. Thanks Professor Sennholz and Mr. Brawn for writing your astute essays. I like folks who make me think. Ben was most correct...

Ole Bear, Editor

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