Forum Post: Before Financial Meltdown of '08 a Private Banking Corporation That We Call The Federal Reserve and that Answers to No One Raised Interest Rates 17 Times in a row to CRASH the REAL ESTATE MARKET. That pushed millions into default and foreclosures faster
Posted 12 years ago on Oct. 16, 2011, 2:44 p.m. EST by FedWallFedWellFedUP
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Before Financial Meltdown of '08 a Private Banking Corporation That We Call The Federal Reserve and that Answers to No One Raised Interest Rates 17 Times in a row to CRASH the REAL ESTATE MARKET. That pushed millions into default and foreclosures faster than they could refinance in many cases, meanwhile Wall Street Schemers collected double and triple insurance on every default. The Wall Street Journal quoted a commentator saying it was like the Wall Street Schemers taking out insurance on your neighbors house then burning it down.
The Great Military Industrial Complex that was foreshadowed by President Eisenhower...a military man himself...he warned against it. Anyway....yes, lots of people made bad decisions...Hilary Clinton talked about predatory lending...a lot of these people did not know what they were doing. We can take the moral highway and say they got what they deserve...but we don't live in a bubble....it hurt everyone...the vast cumulative wealth of the middle class has been destroyed...for fears that middle class wealth was getting out of control? That's how the FED justifies raising the rates 17 times in a row after leaving them low and creating the bubble?
I'm not understanding your statement. I know the Fed under Alan Greenspan continuously "lowered" interest rates causing or at least contributing to the housing bubble. When the housing crash came I don't know what was the "straw that broke the camel's back" but in retrospect I doubt that it mattered; it had to happen because the value of the houses just was not there; the whole system was corrupt: appraisals were way too high, a sham, and people were buying with little or no money down encouraged by Bush regime.
Oh, I see. You are saying after the collapse the Fed raised interest rates 17x making it impossible for new homeowners to meet monthly mortgage payments. These new owners had unwisely accepted adjustable rate mortgages gambling that the rates would stay low. Yeah, well ultimately who's fault is that? That's water under the bridge, but of course if it happened to you it would be painful. The big problem is the housing collapse brought down the entire economy, and in addition to the Fed with their lowering the rates, wasn't Banks and Fannie & Freddie guaranteed payment of loans by our Govt? So if govt did not guarantee these bank loans then Fannie & Freddie would have collapsed long before, so guaranteeing loans postponed the inevitable for F&F and other banks, then Govt bailed them all out with TARP which was worse than the guaranteeing the loans in the first place. A worse case scenario would be hard to imagine. But not once you know, F&F were bailed out several times but it was never announced.
If I'm correct then Govt is the major culprit, which makes sense because it was govt that started the destruction of America full steam ahead when they did 9/11.
Maybe I didn't get details correct, but most corruption leads back to govt. They're supposed to have laws and regulations that are enforceable and do not allow for so many loopholes that favor the very wealthy. Most people are always saying how stupid the govt is about the economy & that they just don't get it. I think govt knows very well what they are doing. They have intended for 100 years to get to this point in time for the End Game. They intend to destroy America and kill off many millions and they believe they will create a military power. I see a huge Revolution. So why aren't we marching on Washington?