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The "Crisis of Confidence" is a mere symptom of the problem, the problem is a "Crisis of Ignorance."
http://kasonomics.blogspot.com/
Watch minutes 19-24 on this video that covers the case of Jerome Daly vs First National Bank of Montgomery in which it is acknowledge by the President of the bank in the judges memorandum that there was no legal consideration put up by the bank against the home to give it the right to foreclose. THIS IS HUGE FOR AMERICAN HOME OWNERS TO KNOW!! The banks foreclosure was rejected on this basis. This also shows a legal judgment against the banks fraudulent system and proves this bank structure is illegal by US Law.... How much more obvious does this have to be???
I would advise watching the entire video, but I am highlighting a critical point that has direct meaning for our times and is on everyone's mind who is trying to support their homesteads and families.
I think I get it. The bank has your house for collateral on a loan, but they didn't actually lend you their money (or money that they had prior to the transaction). That is interesting.
ReplyDeleteHowever, the borrower enters into an agreement where they understand that if they don't make payments, they can lose their house. I'm not clear why this should be different because the bank is able to manufacture the money they lent as opposed to lending money they have on reserve. Yes, it enriches the bank more than I thought, and seems unfair/despicable that they can just make money like that, but why does that mean I don't have to pay for my house?
While I'm not trying to dispute what the court found, it sounds like the argument is that the foreclosure is illegal so even if I don't pay my mortgage, I shouldn't be able to lose my house. What did I miss? Note: I am not defending the banking system--the video and your posts are eye-opening, but that is a separate issue, I think.
There is the personal responsibility part of this discussion that I don't see. If you can't afford to pay, then don't take the loan--I understand sometimes people can't pay for reasons out of their control.
If you think the ability to foreclose is illegal, then don't enter into the agreement, or sell your house and get out of the situation instead of agreeing to something and then trying to get out of it only when things don't work our for you.
I don't know of any other practical ways of financing a home purchase other than paying cash (which is possible for some, but not until maybe you're 60, and then, not probably the house you'd like). It is possible, but everyone thinks they need to have as nice a house as possible as early in life as possible (and then some), so we go to the bank to get a loan and leverage what money we have. If we do this, we should reasonably expect to have to pay it back or expect consequences.
So, I think it is one thing to expose a banking system that is a house of cards, and the foreclosure court case illustrates a piece of that, but I guess I don't see how this relates to whether or not the banks can/should take our houses if we don't pay our mortgage.
I think people need to focus more on living within their means, and expect pay for what they buy or borrow, and not on buying things they afford just because everyone else is doing it or that's what the ads say they need. We do this and then we don't have to get into the argument about whether it is legal for the bank to repo my house because I didn't pay my loan.
You make a very good point. And yes if you are going to finance your home you should be able to pay or what you get yourself into. That is the essence of personal responsibility you are right.
ReplyDeleteThe point of this article was to illustrate the deceptive nature of our debt system. The fact that they can create credit from nothing and charge interest on nothing and then seize your assets which are tied to nothing is the disturbing part.
This credit system then facilitates the creation of newly circulating money which is in itself inflation and the stripping of the wealth of our nation through interest. As they create more fake money it robs us all of our wealth in the long run by ever increasing prices over time.
So the point you are making about financial responsibility I agree with. Staying with that theme of financial responsibility its the responsibility of the U.S. Citizenry to demand a monetary system that works for the people and does not enslave it. With the Federal Reserve as the the counter party of both the citizens and the government we are in a state of perpetual loss. And a system like this can only end badly for everyone in the public sector as their wealth is constantly being transferred away from them.