Understanding the sub-prime mortgage scandal.

Many developing nations are in debt, and poverty, partly due to the policies of international institutions such as the International Monetary Fund (IMF) and the World Bank. Their programs have been heavily criticized for many years for resulting in poverty. In addition, for developing or third world countries, there has been an increased dependency on the richer nations. This is despite the IMF and World Bank’s claim that they will reduce poverty. Here in the U.S., the IMF was behind the mortgage crisis all the way! 

There is nothing inherently wrong or reckless about lending to borrowers with lower incomes, and lower credit scores. But good judgement dictates that in making sub prime loans, lenders must control the risks by closely evaluating the borrower, setting standards for collateral, and charging rates proportional with the greater risks....unless the idea was the fleecing and displacement of citizens from the beginning!? A high percentage of these sub-prime mortgages, over 90% in 2006 for example, were A.R.M's! The IMF's policy of structural adjustment is partially the blame. People want to blame the average Joe for taking out a mortgage he ultimately could not afford, consider this..... 

You have a global pool of money which consists of all of the worlds savings...companies, countries, people etc. The bankers want to invest this money for the best amount of profit for the least risk. In 2000, this amount of money was close to 36 trillion after adding up for many years. In just 6 years in 2006 it doubled to about 70 trillion! This was unprecedented and was because of the poorer countries starting to make money through savings, investments, etc. The world bankers were making a ton of money as a result of this, and because of their greed, needed to re-invest to make more. Their money doubled so fast that the good investments didn't have time to keep up, so consequently, there weren't enough good places to invest. U.S. treasury bonds were one of the investments that the bankers loved, but Alan Greenspan kept the interest rates so low that the bankers could not get the returns that they wanted, so they turned to mortgages where they could get 4, 5, 6, 8 % etc. returns on their money. Thirty years of data proved that this would be a great source of money for the bankers because people were paying their mortgages. 

But, being the greedy parasites that they are, the bankers wanted more, so a scandalous system was developed to get people's mortgages into the hands of the big bankers. This is how it worked. Joe Blow makes a deal with a mortgage broker, who then sells the loan to a bank, who in turn sells it to an investment firm on Wall street like Morgan Stanley, Bear Stearns, or whoever. Finally the Wall street firm puts this mortgage in a pile with a thousand other mortgages, and sells shares of them back to the world bankers who control that global pool of money I mentioned earlier! This worked so well that the mortgage brokers started running out of people who wanted mortgages! So guess what they did! Out of total greed, the bankers had the mortgage brokers relax the standards and requirements of who could take out mortgage loans! Traditionally you needed a decent credit score, and money in the bank to get a mortgage loan. The sub-prime mortgage crisis was caused because they began to loan money out to people with no jobs, no credit, and no money! Meanwhile, everyone in every link of this chain was making HUGE money!

 Everything went great until enough people's bills became due that could not pay them. This is when the crisis started. People stopped paying their mortgages. Now the world bankers with their pool of money ceased all investments, which killed Bear Stearns, Washington mutual, etc. The mortgage brokers were involved with writing up deals that were criminal! Do you blame the guy who had a dream of home ownership who was lied to and told that he could be put into an affordable mortgage situation? They cooked the books to make the numbers look good, but it was all a scam for fast money, and eventual displacement! Many people have lost their homes at this point! As of right now, most can't qualify for a home loan. I recently was told of a doctor with a mid 800 credit score, who could not qualify because of a glitch in an automatic payment!

So now who are buying up all the homes? The Canadians, and Chinese are the top two mortgage investors in the United States! All this while Americans are losing their homes and being displaced at the hands of unscrupulous individuals! Can you say "third world country'? The well-to-do Chinese investors, who are limited in their own country in terms of investments, are buying up many, many properties, sitting on them, or renting them out. They often buy a property and jack up the rent many times displacing the individual.

Now lets talk derivatives. If you really want to know what is going to sink the global economy, many financial experts, and economists say "look to derivatives". No less an expert than Warren Buffet has been warning us about derivatives for years. They type of derivative he speaks about is the big business kind that is sold by large international banks to their corporate customers. These derivatives are loosely monitored by regulators like the Federal reserve. But a whole different derivative market has grown up supposedly under the radar of monitors and is doing a very good job of undermining the U.S. economy all on it's own! I am speaking of the unregulated, out of control derivatives that infested the home mortgage market in recent years. You read about them...mortgages with teaser rates, no interest payments, negative amortization, and so forth. If you did not know that these were derivatives, join the crowd because the people selling them didn't know either, much less the poor souls buying them! And therein lies the problem. 

Just to keep things straight, a derivative is a financial contract which derives it's value from some other more basic, and traditional financial contract. A derivative is typically a swap of one interest rate payment for another over a fixed period of time, or a swap of one asset for another. Another form of derivative would be an option...the right of the buyer to purchase or sell some basic financial contract on a future date at a predetermined price. The basic financial contract that underlies the derivative can be any traditional instrument such as a deposit, commodity transaction, foreign exchange deal, or equity purchase. 

In the mortgage business, the traditional financial contract is the 30-year, fixed rate mortgage payable in monthly installments. Principle payments as a percentage of the monthly payments start out very small in the life of the mortgage, but towards the end almost all of the monthly payment goes towards paying the principle rather than interest. Banks which sell this product do not usually hedge their cash flows by buying a 30-year fixed rate mortgage to match all inflows and outflows exactly. What they do is short-fund the mortgage by issuing short term deposits to hedge their mortgage portfolios.

With the vast amount of options involved in the derivative market, one can begin to see the problem. Only a hand full of the very large banks were able to properly value all of the different options related to this unscrupulous market! A.R.M's, teaser rates, interest hikes for not accepting teaser rates, penalty clauses.....the list is long! Most of these mortgages, as soon as they were booked, were sold by the banks as securities to investors who knew even less about  the option risks, and were fooled by the AAA ratings on the securities thinking they were as risk-free as U.S. Treasuries! 

In steps the media. The very nature of the mortgage problem being described as a "sub-prime credit crisis" implied that mostly poor Black and Hispanic homeowners were/are the majority defaulters on their mortgages, with their homes entering into foreclosure. That is an element of what occurred, but it is obviously not just Blacks and Hispanics, and... it is also a residual effect of something more sinister...the systematic abuse of derivatives by mortgage banks and brokers, and the Wall Street investment banks which packaged and sold the securities! 
It is interesting to me that because primarily due to ignorance, and the media, I hear people saying things like..."these people should never have taken out these mortgages in the first place"! Or..."they knew that they would not be able to make the payments, what made them think they could buy a house in the anyway"? This crisis really has nothing to do with the segment of the market that was lured into thinking they could be a part of the "American Dream" of home ownership. It has everything to do with how these options were sold, and the degree of ignorance that was on display about the risks of derivatives across the board! 

So, the next time you want to blame your neighbor for causing the sub-prime mortgage crisis, you may want to switch some of that blame to the parasite world bankers who control the flow of money!

Sitting here in meditation, I am reflecting the last couple of years to put my life in perspective. Going against the grain has it's rewards, but it also has it's pitfalls! Sometimes I allow my mind to take me back to a place where I was a little more secure with my surroundings. A home with a huge garage to tinker around in. An $80,000 a year job. My kids and their kids. Friends, and familiar surroundings. But nostalgic reminiscing tends to floss over the negatives, some of which contributed to the reasons you made the move in the first place. "The grass is always greener right"?


My better half and I make formidable opponents in whatever endeavor we choose to take on. I decided, in my creative moments, to incorporate world events into my song and lyrical creations. My wife has became a very creative nutritional, and gluten free chef, with an associated blog that she shares with her fans, and members Monday through Friday. She also heads an online community, and a test kitchen...which expounds not only on her creative ability in the kitchen, but her vast research capabilities, leadership skills, and organizational savvy! We have enjoyed 99% of her creations, and we find humor in the unheralded 1 percent of her test kitchen surprises that have become learning lessons to engineer other creations!


Now, I was all prepared to carry my music to the next level by writing many songs with Grammy intonations! LOL I have written music off and on for years, but this time I built a state of the art studio in my garage just three blocks from the beach! All the ambiance was present to induce the level of creativity that I was seeking. To seal the opportunity, I was blessed to have almost two years off of work, well, a lot of that was recovery from surgery, but you get the picture. I was at my most creative moment.


Something strange happened though! I started noticing friends, celebrities, and associates, dying at very young ages. My writing took me many times to linear notes and biography's of respected musicians and composers in the trade for research reasons. I started to put a startling puzzle together as I began to notice how many of these cats died young, and many around the same age! Life on the road can be rough with the haphazard schedules but could that be the reason? Drugs and alcohol are prevalent in musician circles, so could that be it? What about regular people who are dropping like flies from heart attacks, cancer, and disease? What about other entertainers? What about Michael Jackson? What about the collapse of world economies, armed forces on alert all over the world, and the terrorism threat everywhere? What about 9/11? I had a ton of questions to seemingly unrelated events and each research opportunity led me somewhere else! Eventually they mostly led to the same place and I found out that they were not as unrelated as I thought!


In my haste for song material, and collaborations with other writers, I began to research daily! Since my wife is nutritionally minded with her food creations, she was researching daily as well. At some point, our research brought us together interestingly enough, considering we both started at opposite ends of the spectrum. We both now have the unenviable task of enlightening others to the dark-side of the supposed "New World Order" and it's plans for mankind which seem to fall hand in hand into prophesy! Imagine a world of symbolism, demons, wealth, and power. This is their world, and throwing a wrench into the machinery of human good will and harmony is what they do on a daily basis!


I have been reading about many of these things since the eighties, and especially after 9/11, but I never had the time to research and add things up. When I was told years ago that the New World order had a plan to rid the world of millions, I didn't believe it! When I was told that many of my favorite singers like Sam Cooke, Donny Hathoway, and Bob Marley were actually murdered, I didn't believe it. I remember the first time I read that the Axis and Allied powers in World War 2 were both funded by the same bankers, some American. I wonder how many of the dead patriotic soldiers laying on Normandy beaches would have had a problem with that? Vietnam was started based on a lie concerning the Bay of Tonkin incident which the Government has admitted to. Both of my brothers were in that war and one of them is locked up today because of it! 58,000 dead American military, and who knows how many Vietnamese, all for some elite ruling families and their agenda? On top of that the experiments conducted on the service men and women?


Make NO mistake! The United States is no longer a Country but a corporation! Think about this for a second. Why would you ever want to destroy the middle-class? The middle-class who traditionally has beared the brunt of the taxes in this Country. The middle-class with all of it's buying power? Why would you try to destroy that? Why would you cease to make children's educations a priority? A nation's strength is in the futures of it's young right? Not anymore apparently! Why would you ever treat veterans who have at times, put their lives on the line for this Country, like shit? Why would you not secure the borders? I'll tell you why. The people who rule this world are trying to turn this Country into a third world Country, something else I did not believe when I first heard it years ago!


Why do you suppose the Israeli air-force looks just like a knock off from the United States air-force? I am not, nor have I ever been anti-Semitic, but I am anti-Zionist! If you don't know the difference...look it up. The honorable minister Louis Farrakhan has been accused of this many times. Look up the protests by Jews against Zionists. Ninety eight percent of our media is controlled by Zionists! Remember Bob Marley speaking against the Zionists way back in his day?


The elite have gained control over much of the world's economy, energy, education, health care, and food! Why do you suppose that you can go into any major grocer, pick up a food item, and have a hard time finding anything without soy? GMO soy is added to everything now, and it is poison, not in the sense of rat poison, but a "soft kill" poison. Many foods contain added sugar, and high fructose corn syrup!?Why? Many foods contain preservatives that are over the top! How gullible is the American public to fall for the chef boyardee commercial that claims it's canned foods have NO preservatives? The majority of items on your grocers shelves are what is called "frankenfood", and are G.M.O.'s containing mostly non nutritional ingredients, and are harmful to your health! A little study and research will show you how the big pharmaceuticals are tied into the F.D.A, E.P.A, Monsanto[who creates 90 + percent of gmo foods], and the U.S.D.A.  


To simplify things. You eat foods based on the standard American diet pyramid which is loaded with gmo grains that block the absorption of nutrients into the body. Yes, those grains you consume in the form of breads, pastas, cereals, chips, crackers etc. are Frankenfoods of a gmo variety, and they block the assimilation, and absorption of nutrients into the bloodstream where they are needed, causing you mal-nutrition, which leaves your body vulnerable to many horrible diseases and afflictions! So you then go to your doctor who gives you a prescription of something to help you out. He receives a kick-back from the big pharmaceuticals for EVERY prescription he writes! I believe that seven times out of ten, your doctor may think he is doing the right thing, but keep in mind, he is just trying to pay the bills like everyone else. Also keep in mind that most doctors have not had nutritional, or naturopathic classes! So here you are forty years old, and on medication that you did not need! You could have simply changed your eating habits! You then have to take another medication to counter the last one in some cases. You become comfortable with the idea of taking the meds for your health concerns. Chances are in the long run, you won't live to enjoy retirement. You won't receive your social security! Is this starting to make sense? While you are living though, you will be helping to make someone rich....and the sicker you become, the more medicine you are encouraged to take, and the more you are worth to them!


Another problem is water. There will be a shortage and corporations are already setting up to profit huge from this! Whether or not the water has been bad for many years, or it was just a propaganda campaign to fleece us out of more money...who knows. I am not a chemist. All I know is that we have been drinking bottled water for years. Fluoride is poison! The Nazi's used it in Germany, and after the war, were instrumental in setting up the same system here, all the while telling you it was needed for your teeth!? What a sham! The Nazi scientists who complied were not murdered, but scattered around to places like the United States, Russia, and South America. Here in the States, they were given carte blanche by treasonous powers that be, and allowed to conduct their experiments, some sinister in nature, such as eugenics. Others more beneficial, like the space race. There is a belief that certain immunizations react with certain individuals in conjunction with fluoride, and even the massive amounts of aluminum in the soil, to create a breakdown in the body. So lets see...you use tap water, you have received immunizations, you eat frankenfoods off the grocers shelves, you are inundated with pesticides, aluminum, barium, and GOD only knows what else..and this is before you decide to indulge in drugs and alcohol! And you wonder why people are dropping like flies in their thirties, forties, and fifties? I won't even get into what they are doing to the meat before it hits the grocer's shelves! 


What we are dealing with is greed and power! The elite families, bankers, royalty, etc. have been stealing your money for years in the form of taxes, interest, pensions, gold, etc.. Let me ask another question. When did it ever become acceptable to pay three times the amount you borrow for a possession such as a car, house etc? We jump up and down when we get approved for a loan to buy our favorite home right? Then depending on the bogus credit rating system, you commence to re-paying a loan for a certain amount of money that electronically showed up in your account right? The bankers who loaned you that money never owned that money! Fact is, it never even existed....yet you just accept the fact that you are going to repay thousands more in some cases than you borrowed!? Why is that accepted?


Why is it accepted that the federal reserve is never audited and is it's own entity? Why do you keep paying taxes that are ever increasing, while your pensions and 401k's are being eroded away? Why would we ever fall for "weapons of mass destruction"? 9/11 has resulted on the worst attack on our citizens privacy, and civil liberties imaginable! We got scared when the towers went down because we all wanted to rally as a Country to defeat the Muslims who attacked us! We were so upset at the idea, we allowed our government to implement supposed terrorist tracking surveillance equipment everywhere, availability to all of our records etc. just to protect us! Wow, in retrospect, I fell for that B.S. too! I fell for it until I started to realize that nothing added up! All I can say is that if you still believe a motley crew of Islamic extremists crashed planes into the Trade Centers on 9/11 in 2012, you are beyond ignorant! Not to make fun of, or  degrade, but you are the worst kind of sheep!


In closing, I don't know when the bottom will fall out of the economy. You can't keep printing money leveraged against nothing! There are something like $700 trillion in bogus derivatives and the world banks are out of their minds!  The way I see it, according to prophesy, all nations are not pointing at Israel yet so I ain't falling for the whole 2012 issue, though scientists have proven that they can control certain aspects of the weather and natural disasters. I was told years ago by someone I love and respect, that the Anti-Christ would come out of the line of the Papacy. I believe that there is a Black Pope who rules the world, followed by the ruling Roman families who use the Vatican and Pope as a front. Right down the line there are families, Royalty, Orders, and organizations that make the Rothschilds look like peons! These are the people who pull the strings, decide who lives and dies, decide who is elected, who rules, world finances, events and the like. Until we pierce the veils that contain knowledge sometimes that we don't want to acknowledge or accept, until we understand our history, and until we stop allowing our thoughts to be dictated by others so they can control us, we will be destined for failure and allowing history to repeat itself. You think the fact that the ruling elite families, Oligarchs, and their close minions who probably number less than 10,000 people, and are in control of your life and world events, and control 90 percent of the world's wealth ...are a conspiracy theory? You have never been further from the truth! Wake Up!