The Housing Bubble of 2018
December 26, 2017
Emailed to WSJ/NYT/DMN, the US SEC, and Congressmen Pete Sessions and Sam Johnson on 12/26/17
The following is an Op-Ed to “The Wall Street Journal”, “The New York Times”, and “The Dallas Morning News” that explains how “The Housing Bubble” is caused by U.S. Government fiscal and accounting fraud!
The “news media” has an ethical responsibility to inform the general public of how the U.S. Government is committing fiscal and accounting fraud to cheat the general public and the rest of the planet so they can “feather their own nests” and “dramatically feather the nests of their upper-class friends”!
At some point, when the “news media” fails to follow its ethical responsibility to inform the general public of this U.S. Government fraud, ethical responsibility failure transitions to criminal act by the “news media” for aiding and abetting the corrupt and criminal U.S. Government!
The Housing Bubble of 2018
December 26, 2017
In this commentary, I will explain why “The Housing Bubble of 2008” has not been resolved and how “The Housing Bubble of 2018” is a coming financial crisis that cannot be avoided! While “The Housing Bubble” may not burst again in 2018, it will continue to expand in 2018 and its bursting is inevitable! “The Housing Bubble” has been caused by U.S. Government fiscal and accounting fraud! The U.S. Government is fraudulently borrowing money from the future Americans and giving it to the current Americans so they can buy housing they cannot afford!
The following is the brief Wikipedia explanation of “The Housing Bubble of 2008”.
United States housing bubble
From Wikipedia, the free encyclopedia
The United States housing bubble was a real estate bubble affecting over half of the U.S. states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case–Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is—according to general consensus—an important cause of the 2007–2009 recession in the United States.
Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble "the most significant risk to our economy".
Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.
In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble. This was shared between the public sector and the private sector. Because of the large market share of Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac)(both of which are government-sponsored enterprises) as well as the Federal Housing Administration, they received a substantial share of government support, even though their mortgages were more conservatively underwritten and actually performed better than those of the private sector. The financial sector bailout ultimately proved profitable for the U.S. government, especially its nationalization of Fannie Mae and Freddie Mac.
There have been several explanations given for the cause of this “Housing Bubble” but the “root cause” of “The Housing Bubble of 2008” has never been exposed. The “root cause” of “The Housing Bubble” is U.S. Government fiscal and accounting fraud! The U.S. Government is not using proper GAAP Accounting and as a result is printing counterfeit money. Americans are buying houses with counterfeit money!
These are some of the explanations that have been given for “The Housing Bubble of 2008”:
1) U.S. Government providing loan guarantees for home loans
2) U.S. Government requiring that financial institutions make home loans to a defined quota of low income borrowers
3) unscrupulous lenders making loans that the buyers were not capable of paying, sometimes called low-doc or no-doc loans
4) unscrupulous financial institutions putting together packages of loans with questionable quality representations
5) rating agencies giving questionable ratings for the loan quality of these loan packages
6) an undersupply of housing inventory compared to demand
While all these reasons are contributors to the housing bubble, the “root cause” of “The Housing Bubble” has never been properly exposed. The “root cause” of “The Housing Bubble of 2008” is an oversupply of money! The corrupt and criminal U.S. Government is printing counterfeit money by committing accounting fraud! As of December 26, 2017, the U.S. Government has printed $109.4 Trillion of counterfeit money! Americans are buying houses with counterfeit money that the U.S. Government has created out of “thin air”.
The U.S. Government is using Cash Accounting rather than the proper GAAP Accounting and as a result has stealthily deferred $109.4 Trillion of public liabilities (US Unfunded Liabilities (GAAP)) to the future Americans. The U.S. Government has borrowed $109.4 Trillion from the future Americans and given it to the current Americans, primarily the U.S. upper class! I call this fraudulently borrowed money “imaginary-counterfeit money”. The corrupt and criminal U.S. Government has borrowed $109.4 Trillion of monopoly money from the future Americans and given it to the current Americans.
This is monopoly money because the future Americans do not have $109.4 Trillion!
GAAP basis deficit spending stealthily, fraudulently, and digitally prints imaginary-counterfeit money (monopoly money)!
Americans are buying houses with monopoly money! The corrupt and criminal U.S. Government prints $15.5 Billion more monopoly money every day with ongoing GAAP basis deficit spending. That is why house prices continue to go up, the corrupt U.S. Government is just printing more and more monopoly money by using fraudulent accounting so that we can buy more and more and bigger and bigger houses and pay more and more for the old ones!
The U.S. Government and the Federal Reserve Bank have been patting themselves on the back for rescuing the global financial system in 2008 when in fact they have done nothing to resolve the “root cause” of “The Housing Bubble”! Janet Yellen, Fed Chairperson, has even gone so far as to say that we will not have another financial crisis in our lifetimes because of the actions by the Fed and the U.S. Government.
Unfortunately we are on the precipice of the biggest financial collapse in the history of the planet and Janet Yellen, the Chairperson of the Federal Reserve Bank, has no clue that it is coming! Apparently Congress has no clue that it is coming either.
Americans have bought and built houses, condos, and apartments that we cannot afford because the U.S. Government is using fraudulent accounting!
Americans have bought and built a lot of things that we cannot afford with the imaginary-counterfeit money that the U.S. Government has fraudulently and digitally printed with GAAP basis deficit spending!
That is why we have so many cars on the roads. We are buying them with an exponentially increasing stream of imaginary-counterfeit money!
That is why we are buying and building bigger and bigger and finer and finer houses, condos, and apartments! We are buying and building them with an exponentially increasing stream of imaginary-counterfeit money!
The corrupt and criminal U.S. Government is operating with a fiscal policy that is a classic Ponzi scheme, I call it USAPonzi, that is allowing the current Americans to buy houses with the future Americans' money! $109.4 Trillion so far! Money that the future Americans do not have!
The Housing Bubble is about to burst again!
The Housing Bubble is caused by U.S. Government fraud!
|Cash Deficit in FY2016
|GAAP Deficit in FY2016
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|Total National Assets
www.usdebtclock.org December 26, 2017
To eliminate this fraud, the U.S. Government must adopt GAAP Accounting and commit to a balanced GAAP basis budget.
I have published a website www.usaponzi.net that explains how this fraud works to create a massive global wealth and income gap between the haves and the have-nots and to create false wealth and prosperity for the current Americans. The www.usaponzi.net website is an introduction to my more detailed website www.usaponzi.com and my books “USAPonzi” (Nov 22, 2015) and “USAPonzi2” (May 1, 2017) which are available on Amazon to better explain this fraud/Ponzi scheme.
This fraud/Ponzi scheme is also explained in “short story style” in my October 1, 2017 commentary USAPonzi CliffsNotes and in my October 8, 2017 commentary USAPonzi Elevator Speech.
This is the biggest ($109.4 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Ultimate Government Fraud” and “The Biggest Ponzi Scheme on the Planet”.
John W. White