The number of homes for sale has plummeted 14 percent since last year. According to the US Census Bureau, there are almost 8 million houses “held off the market” this year, compared to slightly more than 7 million in 2010, 6.5 million in 2008, and 6.2 million in 2007, when the housing crisis struck.
So what’s going on? It’s simple. With the blessing of the US Department of Justice, major US banks, such as Citigroup and Wells Fargo, have taken millions of houses off of the market in order to jack-up the prices of those houses still on the market, all of which is in violation of the Sherman Anti-Trust Act. In other words, the US Department of Justice is a co-conspirator in this scheme.
Decreasing the number of houses for sale artificially pushes the price of mortgages up, by increasing purchasing costs in the form of interest rates for home buyers.
The bank’s shareholders reap the benefit of this illegal scam since they’re going to receive higher dividends and stock prices, all of which is at the expense of the 99 percent.
What’s more, most people don’t realize the housing market rise is being manipulated, so the members of the 99 percent are now starting to get into the market while prices and interest rates are still relatively low, driving the market higher, which would not occur under real market conditions.
This will allow the banks to bring onto the market more and more of their houses currently withheld from the market, and at higher prices than would get under normal market conditions. The banks and the 1 percent are getting something for nothing.
All of this is to the benefit of Wall Street. Trillions of dollars of mortgage backed bonds held by hedge funds, mutual funds, banks, governments, and the 1 percent are worthless because of the decline of the housing market. Now that the housing market is moving up in value through manipulation, those bonds will begin to regain value.
In other words, on all levels, income is being massively shifted from the 99 to the 1 percent through market manipulation, something Wall Street President Barack Obama and Wall Street US Attorney General Eric Holder approve of.
They’re creating another housing bubble that will improve Obama’s economic numbers, but this is really another illegal income redistribution scam. This shows how rotted to the core the US government has become, and how insane it is for people believe that markets operate in some text book way featuring a market setting supply and demand.