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"The Biggest Investment of Your Life"
House prices are so much more than what they cost to build
Date: 9/24/2008 6:53:25 PM ( 16 y ) ... viewed 1905 times Buying a home is said to be "the biggest investment that most people will ever make in their entire lives". So why wouldn't it be a GOOD thing that the cost of a house was somewhat closer to the actual cost of building a house?
Bush said, this week of Sept 25th 2008, in speaches to the nation about the rescue of the financial meltdown, that it was his mission now to "bring the house prices back up".
Due to all the foreclosures lately, and all those houses on the market that are owned by banks, there are a lot of cheap houses. It sounds like a great thing for "the average person", to whom Bush claims to be doing all this for. Sure, those who allready own houses are seeing the values drop, but it is not like they will actually LOSE CASH over it unless they plan to sell.
No, the real story is a sordid affair, and goes back a ways.
Let me start by quoting from a book that was published a couple years ago, but is now even more poignant than before. It is titled "Satanic Purses" by R.T. Naylor. He begins by saying that "the dreaded al-Quadah, and it's leader bin Laden, was THREATENING TO DESTROY AMERICA'S, AND THE WORLD'S, FINANCIAL SYSTEM". The first strike in this plot was bringing down the WTC, the physical hub of that financial system.
Instead, it appears Bush and his Wall street buddies did that all by themselves by getting over-extended in the mortgage credit schemes. Something not being mentioned on the news these days is that Bush actually made some changes to the laws of the land in 2007 and 2008 that allowed those "sub-prime loans" to be done like they were. Those new rules gave the investment banks more rope to hang themselves with, and they took it up eagerly!!
In a similar vein of self-whiplashing effects by Bush, R.T. Naylor says, the military response to 9/11 "has left a trail of bodies that far exceeds the acts of 9/11 that initiated the military response" , therefore ensuring it's own perpetuation".
Ok, so we have those two examples... but an even more cynical view is that Bush has planned all this, that it is going exactly as he wants it to [or, perhaps his superiors planned it, and he is their puppet]. In other words, the sub-prime meltdown is Bush' parting gift to his Wall Street supporters.
The gift would be this:
First there was the huge amount of money brought into the portfolio managers who were being paid by 'dollar volume of mortgages' to homeowners [whether they could pay it back or not], and now there is the trillion dollar bailout that will prop up those corporations that insured the bad mortgages. Huh.
Just watch - in the near future the share prices will go back up again and everyone will be back in the black. And, in the case of the banks that have failed, such as Lehman Bros., perhaps they were not players for Bush, or maybe it doesn't really matter than they died because they are just the corporations and not actual individuals, and the bi bosses probably dumped their stock/shares by the time the banks failed. Some workers lost their jobs, but those are not the people Bush really cares about.
This "gift" follows the big gift to weapons makers and military contractors that was in the form of The War on Terror.
Also, oil companies make their biggest profits by importing cheap Arab oil, so "raiding Iraq" was the Bush gift to them.
Bush has a lot of gall to continue to say that his main concern is "the little guy on main street, not the big guys on Wall Street". In the same breath, Bush said the bailout plan was partly about helping to raise the price of houses back to where they were before the sub-prime crisis. But gee, G.W., are you so sure that having house prices where more people could afford them is such a bad thing?
And ya, WHY ISN'T THE PRICE OF A NEW HOUSE CLOSER TO THE ACTUAL COST OF BUILDING IT? Typically, the materials, labour, and the land a house sits on are worth about $100,000 or less, but they cost $500,000 or more!!!
Hmmmm, "The Biggest Financial Investment Most People Will Ever Make" is looking more and more like "the biggest gift to investment bankers from the average person". [now lets go Google that bit about the rule changes that Bush made for the sub-prime mortgage industry!!].
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