Daily Archives: January 29, 2012

Coffee Talk, Opinion/Editorial

-AN AMERICAN TRAGEDY- A Brief Analysis of Why Our Political System Has Lost Sight of the Common Good~William Boe~Part 1: The Real Estate Crash

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I. THE REAL ESTATE CRASH

A.The Significance of Real Estate:

Real estate. Over the centuries, borders were built to define it, wars were fought to protect it and when you were able to buy it, you owned a physical piece of the nation you live in. In America, unlike other countries, real estate has been abundant. As we moved westward from the original 13 colonies we found a sparsely inhabited continent. The government granted us land pursuant to the Homestead Act if we worked it for a certain number of years. Later, the government helped us buy land if we could satisfy their lending requirements. As a result, real estate became the primary building block of personal wealth. So we told our children go to school, so you can get a job, so you will have the income to buy a house, so you will have a place to raise your family, and when you retire you can sell that house, buy a condominium, and live off the difference until you die. Furthermore, real estate became the basis of national wealth. Roughly 80% of the wealth of this nation is tied up in real estate, and our financial system is leveraged to it to the hilt. In the absence of political manipulation, the law of supply and demand kept housing prices and housing starts– reasonably in balance. Now that we understand the value of real estate, we can begin to appreciate what it means to our society in terms of personal wealth, national security and politics when that value is suddenly and irretrievably lost.

B. The “True Cause” of the Crash:

If the real estate crash is as important to this generation as I believe it is, then the factors that caused it to occur must be properly identified. The reason this is an issue is because the Obama campaign has purposely misrepresented the cause for political purposes. More specifically, they have blamed the real estate crash, and the resulting economic downturn on Wall Street greed. They have conspired with labor unions to launch the Occupy Wall Street movement in major cities across the United States. And they have promoted an anti-capitalist class warfare theme.

Their objective is two-fold. First, Congressional Democrats are eager to cover up the role they played in the real estate crash. Second, Obama is keen to use the issue against the likely Republican candidate, Willard Mitt Romney, a scion of Wall Street. But their premeditated lie has the potential to poison the public mind. Therefore, it behooves us to set the record straight on what the real cause were.

The genesis of the real estate crash was demographics. The high birth rate during the baby boom followed by low birth rates in succeeding generations meant that when baby boomers retired there would be an insufficient number of buyers to purchase every home, and the market price for home would decline. According to my information, this contingency was discovered by the now defunct Solomon Brothers in 1994 and they proceeded to alert the rest of Wall Street and Federal Regulators at or near that time. Rather than sell off immediately, and generate a crash, they opted to spread the risk from the strong pockets to the weak pockets. Therefore, they kept interest rates low to attract new buyers and they created a new class of securities which would bundle those risks for sale around the world. Judge Richard Poser (U.S.C.C.A.-7) wrote a book on the 2008 Real Estate Crash and in it he wondered why the FED with its 36 economists did not foresee that cheap money would create a bubble. And in his book, George Soros points out that if you make money cheap enough like the FED did, lenders will lend it until there is no one left to lend to. The answer is they all saw it. How could they not? But the word was mum. Barney Frank and his fellow Congressional Democrats saw it as well. But instead of doing the responsible thing and encouraging lending institutions and borrowers to trim their sails, Barney did the political thing—and thereby triggered the bomb. Over the objections of Bush regulators, Frank forced financial institutions to lower lending standards. Then, weak pockets booked passage on the Titanic. Those weak pockets were given low interest loans with balloon features. When the balloon payment fell due, they defaulted en masse. Continue reading →

Coffee Talk

AN AMERICAN TRAGEDY- A Brief Analysis of Why Our Political System Has Lost Sight of the Common Good~ By William Boe~Introduction

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I will be featuring a fantastic analysis in parts, written by one of the most political astute bloggers I have had the privilege of reading, Mr. William Boe of Seattle Washington.The full .pdf will be available 1-30-2012. Given the depth and detail that went into this piece as it directly addresses the source of the problems facing our country, I feel this article is worth the front and center attention each section will have this week, on this blog. It is my privilege to present;

AN AMERICAN TRAGEDY- A Brief Analysis of Why Our Political System Has Lost Sight of the Common Good~ By William Boe

~Kat

-AN AMERICAN TRAGEDY- In the closing scene of Tales of the South Pacific, writer James A. Michener spoke of the impact that the Battle of Guadalcanal had on his generation, “until longer shadows obscured them and their battle sounded as distant on the ear as Shilo and Valley Forge”. The word is “Kismet” and in Turkish it means fate. People have fates-or destinies. Generations do as well. As Guadalcanal was Kismet for the generation who fought in the Pacific in World War II (including my dad), the 2008 real estate crash may turn out to be ours. The American People are unaware of the magnitude of the problem. This is hardly surprising. Mr. Obama has absolutely zero interest in making plain the nature of the problems we face. He wants to make it seem like jobs are coming back, that the deficit is under control, things are on the right track. And mainstream media (as herein defined) covers for him. Accordingly, this paper will explore the significance of the real estate crash in terms of cause and effect; the leadership failure of Mr. Obama on major domestic issues; his highly problematic state of mind; the corruption of the media; & why we can no longer trust the system. Put it together and what have you got? An American tragedy writ large.