Skip to content

THEGREAT HOUSING RECOVERY AND OTHER MYTHS (PER MARKET WATCH.COM)

September 19, 2013

THE GREAT HOUSING RECOVERY AND OTHER MYTHS (per Market Watch.com)

Business news pages, TV business channels and other corporate-owned media these days are trumpeting the recovery of housing, which they say is attributable to low interest rates, rising real estate prices and even some “overheating markets.” They are not telling the truth (except for cash-laden vultures in for the kill). The housing market recovery is far from a done deal for the vast majority of the people involved, people by the millions who have experienced the brutality of foreclosure, lost homes and/or the continuing struggle to stay in homes with negative equity (underwater), not to mention that those who have been uprooted and dispossessed have left boarded up and generally unkempt housing behind which reduces even further the value of the housing of their former neighbors who remain.

The same Wall Street that used pools of overpriced mortgages as collateral for credit derivatives it sold all over the planet and nearly brought the world to depression is now back in the game of financing the purchase of foreclosed and underwater mortgage debt its antics brought about. Wall Street, after all, controls consumer credit, and is making a bundle with cash-only offers that cannot be matched by competitors at auctions and sheriffs’ sale of distressed real estate around the country. The only good news in the real estate market these days belongs to those who bought their property before the crisis or otherwise have ample credit and, of course, Wall Street, which profits either way, up or down.

It is wrong by any standard I can imagine to bail out Wall Street banks with money collected in part from those who are underwater on their mortgages or have lost their homes, but that is exactly what has happened. Wall Street banks were bailed out; bankruptcy relief was simultaneously denied those who were and are either underwater on their mortgages or dispossessed entirely (with some who have also lost their jobs living under bridges). The near-depression caused by Wall Street’s near-criminal antics a few years ago contributed greatly to the near-recession economic milieu we have had to endure ever since, and in many cases must have caused the unemployment of former homeowners as well as the loss of their homes. To think that such homeless and unemployed people are additionally called upon to bail out the same greedy group that put them out of house and home (and perhaps their jobs) is more than conscience can bear. Bailouts for the bad guys and denial of bankruptcy relief for the dispossessed followed by bad guys coming in to pick the bones of the dispossessed former homeowners with wads of cash, cash supplied in part by the dispossessed? How can this happen? The business press chirps that the borrowers were irresponsible. Mortgage loans require at least two parties; what about the responsibility of the lender? The same lender that securitizes the mortgages into a pool and runs around the planet making even more fees and commissions on the sale of derivatives (which many economists describe as toxic, including Warren Buffett, who refuses to traffic in them) – speaking of irresponsibility)?

There are currently more than 7 million mortgage holders who are underwater and struggling to remain in their homes. For millions more who have lost their homes, their “market” is over. For the very most part, it is investors and not new homeowners who are buying in the so-called “hot markets.” The “recovery” is a waiting game in which those underwater are hanging on in the hope that they can survive until their homes gain enough value to bring them to the surface. A slow economy doesn’t help.

The housing “recovery” is a cruel myth orchestrated by those who profit from such false tripe. GERALD E

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: