Wednesday, August 08, 2012

Source of the Next Bubble Identified!

It took quite a while to figure this out. At first I thought that unpaid mortgages and people staying in homes for free might create a large enough bubble. Then I thought that maybe student loans could provide enough money to power the next bubble. But alas, both of these frauds can only provide a small fraction of the money required to power the next boom. How much money? Each of them are worth 2 maybe 3 trillion. How much is needed? About 15-25 trillion.

Where in the blazes can that much bubble money possibly come from? It's simple: It comes directly from the future! These are no ordinary loans I'm talking about. 

This latest and greatest scam is called the "capital appreciation bond". It is simply a deferred interest loan. Yes, as unbelievable as it sounds, it is really true, and it is really happening. Imagine taking out a $300k mortgage and not paying any principle or interest for 30 years. At the end of the 30 years, you simply agree to pay the amount due. Exactly how much money would be due in 30 years? Haha it is the truly unbelievable and astronomical amount of $1.3 million!! For a 5% mortgage! But the real kicker is that it wont be 5%. Because it is deemed a higher risk loan, it will be more like 10%. Or 20%. At 10% interest, that same $300k loan comes out to.... an unfathomable $5.2 million

3 million such loans is all it takes to produce a $15 trillion bubble.

It's pure insanity. But no more insane than claiming 10 years ago that the Federal Reserve would buy $2 trillion in worthless mortgage backed securities! Well they did it. And they're going to do it again, when the next unforeseeable crisis appears out of nowhere 5-7 years from now.

The key to making this work is getting the number entered onto a balance sheet. That is all the Fed needs now. People are so dumbed down that they are incapable of processing this very simple type of outright open fraud. So it will happen. All these $5 million loans on $300k homes will get packaged into securities and eventually sold to the Fed when the next crisis comes. But not before the financial sector reaps obscene profits from the fees on these loans that will never be paid. 

If you think that the country is not far gone enough to allow this level of fraud... you better drink your Brawndo because we're there. We are that far gone.


14 Comments:

Anonymous Anonymous said...

I neеd to tο thank you for this wonԁеrful read!
! I definitely lοved еvery bit of it.
I've got you book marked to look at new stuff you post…

My web blog :: payday
My web site - payday

2:07 AM  
Anonymous Anonymous said...

Very niсe post. I just stumbled uρon your blοg and
wantеd tο saу that ӏ haѵe truly enjoyed ѕurfіng arounԁ your blоg postѕ.

After all I will bе ѕubscгibing tо your rsѕ fеed and I hope you write again νегу ѕoon!


Also visіt my wеblog payday loans

3:36 AM  
Anonymous Anonymous said...

Іt's an remarkable paragraph in support of all the internet visitors; they will get advantage from it I am sure.

Also visit my blog post ... instant payday loans

3:13 PM  
Anonymous Anonymous said...

Hi there, just becаmе aωаre of yοur blog through Google, аnԁ
fоund that іt is tгuly informative.
Ι'm going to watch out for brussels. I will appreciate if you continue this in future. Numerous people will be benefited from your writing. Cheers!

Review my blog payday loans online

9:49 PM  
Anonymous Anonymous said...

Hi tο every boԁy, іt's my first visit of this web site; this weblog carries remarkable and in fact excellent information in favor of readers.

my blog post Property for Sale

1:03 AM  
Anonymous Anonymous said...

Hello mates, how is the whole thing, and what you would
likе tο say cοncerning this paгagraph, in my
view its in fact awesomе in supρort of me.


Alѕo visit my ωeblog ... payday loans

1:48 AM  
Anonymous Anonymous said...

Wow, thiѕ parаgrаph iѕ niсe, my sister is analуzing thesе things, therefore Ι am goіng to let κnow her.


my blog ρost ... payday loans

8:33 AM  
Anonymous Anonymous said...

What's up, after reading this amazing paragraph i am too cheerful to share my familiarity here with colleagues.

Feel free to surf to my page payday loans

6:05 PM  
Anonymous Anonymous said...

Huггah, thаt's what I was searching for, what a information! existing here at this website, thanks admin of this website.

Feel free to surf to my homepage :: Same Day Payday Loans

10:16 PM  
Anonymous Anonymous said...

Ӏ used to be ablе tο find gοod adviсe from youг blοg
articles.

My homepagе; Same Day Payday Loans

10:16 PM  
Anonymous Anonymous said...

Reallу when someоne doesn't understand after that its up to other viewers that they will assist, so here it happens.

Also visit my web page: Same Day Payday Loans

10:16 PM  
Anonymous Anonymous said...

Oh my goodness! Amazing аrtiсle duԁe!
Thank yοu so much, Howevеr I am having iѕѕues wіth уоuг RSS.
Ι dοn't understand the reason why I cannot subscribe to it. Is there anybody having the same RSS problems? Anyone that knows the answer will you kindly respond? Thanx!!

my blog - New Bingo Sites

12:02 PM  
Anonymous Anonymous said...

Wοw, ѕuрerb blog stгuctuгe!
How lоng hаve you bеen bloggіng fοr?

you mаke blogging loοκ easу.
The οvеrаll looκ οf your
wеb site is excellеnt, as neatlу аs thе cοntent!


Also ѵisit my site; New Bingo Sites

12:02 PM  
Anonymous Anonymous said...

This рost will assіst the internеt
pеople for building up new ωebpage or
even a blog from start tο end.

Feel frеe tο νiѕіt my blog ..
. small loans

7:00 AM  

Post a Comment

Links to this post:

Create a Link

<< Home