It’s unofficial, but true because your corporate media, Wall Street investment banks, and government officials don’t want you to know. The market for homes is being fixed like a corrupt poker game. The big banks are playing with a loaded hand, playing the 99 percent for fools, and they’re doing this by rigging the housing market; they’re artificially pushing home prices up. That’s the only way home prices can be rising, because home buyers aren’t buying.
Look at the graph above. You can see that the number of 30-year fixed mortgage applications hit a record low on December 9, 2012, well after the housing market began to heat up a few months earlier. Since that December 9th, the number of mortgage applications have inched up a bare fraction, and they’re back at near record lows. Roughly 80 percent of all home mortgages are 30-year fixed mortgages.
A quick look at all home mortgage applications called the price index, which includes 15-year flexible and 30-year fixed, shows almost the same pattern. The number of total mortgage applications have remained the same for the last three to four years. They’re lower now than in 2014 by a significant margin.
If if the demand for houses is so low, and compared to the peak of the housing bubble in late 2005 it’s quite low, what is keeping house prices surging beyond 2005 home prices? Why are home prices exploding upward while demand is at a near 20 year low?
The evidence is clear. Demand is not pushing up home prices.
That means the supply is artificially drying up. Here’s how its done. The banks are keeping up to 90 percent of foreclosed homes off the market. See As Many as 90 Percent of All Foreclosed Properties Held Off the Market–The Street. I’ve got a good and dear friend whose home should have been foreclosed years ago, but she’s still living in it.
The National Association of Realtors suggested the banks were keeping 3.4 million house off the market at one point. According to a Bloomberg News Report from 2012, 3.4 million homes kept off the market represents more than 50 percent of all vacant homes in the nation.
These homes are just sitting there. I see them everywhere, although you might need to look close. There are several of them within the ten square blocks of where I live.
This quite naturally has driven up rental prices as people are no longer able to afford to purchase homes, and they must now rent. There is also evidence that a large number of rental units is being kept off the market, which is also be driving up rents.
The action of the banks is called a conspiracy in restraint of trade, and this action is against the law. It is also designed to redistribute income from the 99 percent to the banks and their shareholders, most of whom are members of the 1 percent. This conspiracy is a violation of the Sherman Anti-Trust Act.
Don’t expect Wall Street President Donald Trump to order his Wall Street attorney general to do anything about these criminal acts either, just like then President Obama refused to do. Obama’s biggest campaign contributions had been from members of the Wall Street gang, such as Goldman Sachs and Citigroup. Trump is also beholden to some degree to the big financial interests.
All of this market manipulation redounds to the benefit of Wall Street. Trillions of dollars of mortgage backed bonds held by hedge funds, mutual funds, investment banks, governments, and the 1 percent are worthless if the housing market declines by 8 percent or more, but they go up in value if the houses go up in value.
The Federal Reserve has been bailing out these incompetent investors for years with $26 trillion dollars of so-called loans that have never been paid back, and it’s unlikely they will ever need to be paid back since the Fed has already claimed they were paid back when it was impossible to have occurred. (See The 26 Trillion Dollar Bailout–JohnHively.Wordpress.com). The Fed has also purchased trillions of dollars of these bonds at their face value, rather than at their worthless value.
This conspiracy is a massive income redistribution scam.
On all levels, income is being redistributed from the 99 to the 1 percent through market manipulation, something Wall Street President Barack Obama and his Wall Street attorney general apparently approved of. Otherwise, they’d had done something about the newest criminal activities of the banksters. President Trump will also not likely do anything about these criminal actions.
This shows how rotted to the core of corruption the US government has become, and how insane it is for people to believe that markets operate in some text book way featuring supply and demand.
From 2009 to 2015, 99 percent of all US income growth had gone to the 1 percent, an historic record, and by a wide margin. Nowadays, the 1 percent is stealing 37 percent of all income created in the United States, up from 17 percent when Obama took office, which was up from 8 percent in 1980. This has occurred for many reasons, and one of them is this conspiracy in restraint of trade.
Hillary Rodham Clinton was Wall Street’s chosen one. A vote for Hillary was a vote for more Wall Street scams, higher rents, higher housing prices, and more income and wealth being redistributed from the 99 to the 1 percent. This may be why Wall Street investment banks bet big on Hillary. See Wall Street bets big on Hillary Clinton–JohnHively.Wordpress.com. Let’s see how much they’ve been betting on Trump.