~ Click here to view the full Freddie and Fannie Become Penny Stocks article.
Overwhelming American communities with mortgage, auto and credit card debt as we shift manufacturing and research capacity, jobs and approximately $10 trillion of capital offshore—much of it by illegal means— has been the US economic strategy since 1996.
This was a strategy that depended on massive government spending and market intervention. It was intentionally designed to leave us where we are now. There clearly is a plan. I am not privy too it. However, what is happening is not an accident. The people who run the world are plenty smart. Originating a great deal more debt than anyone could carry, let alone pay back always ends in failure and bankruptcy of someone or something. So Fannie and Freddie’s failure or nationalization was always in the cards – it was a matter of when.
If your goal is total centralized control, this is a great way to achieve it. Between Freddie, Fannie, Ginnie Mae, FHA, VA and the Federal Home Loan Bank Board, the federal government no longer regulates or provides credit to the residential mortgage market – it is the market.
Combined with the digitization of the mortgage credit scoring, origination and servicing process, the implications for privacy and personal freedom are simply stupefying. And the best part is that this can be described as the government “helping.”
I have described the fundamental US strategy on numerous occasions over the years. It was my misfortune to try to propose an alternative strategy. When that made me a target of a legal and economic “hit,” I attempted to warn people of the dangers. Those who heeded those warnings avoided direct harm from the burst in the housing bubble, including the drop in Freddie and Fannie shares to penny stocks. While living with the horror and grief of realizing that most would not heed those warnings, I concluded that we were experiencing a financial coup d’etat.
Here is a sample of pieces that I have written which describe the intentional lack of sustainability in the US mortgage market and economy:
The Story of Edgewood Technology Services (Oct 1999)
The Hamilton Litigation (Dec 1999)
The Myth of the Rule of Law (Nov 2001)
Personal Experience with FHA-HUD (June 2003)
America’s Black Budget and Manipulation of Mortgage and Financial Markets (May 2004)
Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits (April 2006)
The Housing and Economic Recovery Act of 2008 (Aug 2008)
Here are two pieces that also describe my personal process:
Where is the Collateral? (Oct 2003)
So, Where is the Collateral (July 2004)
I describe the history of governmental mortgage fraud in Part I of Solari Audio Seminar Navigate the Housing Bubble. If you are interested in the deeper story, I recommend this one.
George Bush and Vldamir Putin are brothers. I am a American married to a Ukrainian who lived her life in the Soviet Union. I have talked a lot to seniors who know about socialist life. America has become the EXAMPLE OF SOCIALISM. Why? Because two reasons. #1: In 1933 President Roosevelt signed a treaty with the United Nations declaring the United States BANKRUPT. He created income tax that would be used to run the country and the interest from the income tax was to used to pay off at the time the 4 billion of national debt. Today 75 years later we are now after goverment take over of Freddie Mac/Fannie Mae 20.6 trillion in debt as a country. We cannot pay this debt off. We can’t even run a fiscal goverment 1 year with a balanced budget. We are 500 billion in debt each year. It is obvious the take over is to prepare the United States for a world bankruptcy AGAIN IN 2009. The will obvious delete the American dollar. It was declared illegal about 5 months ago. They have printed the Amero as a collectible coin for 2 straight years. On the back of the coin it DOES NOT SAY (UNITED STATES OF AMERICA) IT SAYS (UNION OF AMERICA). It is so obvious that the United States has no intention of paying the debt. The United States is going to completly start a new currency using the Amero after filing for bankruptcy protection from creditors through the United Nations. SAME AS PRESIDENT ROOSEVELT. President Roosevelt set up the International banking cartel as the debt party owed. They today form a group known as the BILDERBERG GROUP. They are the people still 75 years later running the world. They are they inherit of the economic situation. They are planning all this to change the currency. Why? This leads me to my second reason.
#2 In 1990 when the Soviet Union sperated people thought democracy had broken through. However this was a blind thought. Before they seperated the Soviet Union. The KGB had already put the most well educated and loyal KGB in power in breakway republics political highest elected positions. So they can steal and run the KGB platform. This happens up to this day except TWO BREAKAWAY REPUBLICS. Ukraine and Georgia. The exact two who have Presidents who want to join Nato. The public does not support the presidents there. In 1990 when they seperated the KGB literally controlled the ENTIRE FINANCIAL MARKETS. They stole all citzens money. People went to the banks and were told the money is not theres. They are not longer Soviet Union. There are actually 5 billionares in Ukraine who took all citzens money and investments. They still do not own the homes outright. They have to pay bribes to elected offials today to attempt to own the homes outright. Even if they were owned outright before 1990. The people literally lost everything. SEE THE SIMMILIARITIES???????????
Goerge Bush has learned from his European KGB brother many ways of how to become powerful and rich. The United States knows that when they decalre bankruptcy. The will be able to begin a new currency. There will be complete loss of financial accountability. The currency exhange rates will be completly out of control. People will be told what they will recieve. It has happened this way in 1933, it happened in 1990, and it will happen 2009. When the goverment took Freddie Mac and Fannie Mae into a conservertship a few weeks ago. It was done until the end of 2009. It is being held up for congress and the incoming to President to manage and decide how to run, or where its future is. How is that going to protect and person with a mortage? Not only that those companies and invested heavily in INTERNATIOL COUNTRIES. Again exactly like the bankruptcy in 1933. Not since the beginning of the creation of the Presidentcy of President Roosevelt have they been in the Goverments conrol. IT IS SO OBVIUOS THAT THE UNITED STATES AND GEORGE BUSH AND BOTH PRESIDENTIAL CANDIDATES ARE ALL IN THIS TOGETHER. BECAUSE THEY ALL WORK FOR THE BILDERBERG GROUP. THERE IS ONLY ONE WAY OUT OF THIS MESS.
IT IS TIME TO SELL ALL YOUR THINGS OF DEBT. AND LIVE A COMPLETLY DEBT FREE LIFE. OWN A CAR YOU CAN AFFORD, A HOUSE YOU HAVE PAID OFF, NO CREDIT DEBT, BUY CLOTHES AND FOODS PAYING CASH. AND STOP THE GREED THAT YOU HAVE TO BE BETTER THAN OTHERS IN THE WORLD. START ENJOYIN LIFE WITH WHAT YOU CAN PAY CASH FOR AND BE HAPPY. HELP YOUR KIDS GET A GOOD EDUCATION. AND LOVE EACH OTHER.
ONCE I SAW THE POOR IN UKRAINE WHO LOST EVERYTHING IN 1990 TO THE KGB AND PUTIN. I realized myself that I am a greedy selfish American man who needed to change.
Every person who reads this can also change to make our kids lives more closely chosen to proetect there future. If we don’t change today. There will be no future for the kids you kiss each day and drop off at school. Who know responsibility to our actions now. THINK IT OVER AND REALIZE WHAT GEORGE BUSH BARACK OBAMA JOHN MCCAIN ARE PREPARING US FOR. John Mccain say (country first) IT DOE NOT SAY PEOPLE FIRST, OR CITZENS FIRST, IT SAYS COUNTRY FIRST. He is preparing to ask you for a sacrafice. TO GIVE UP YOUR DEBTED MORTAGED HOME OR AUTO FOR THE COUNTRY WHEN THEY DECLARE BANKRUPTCY. Barack Obama says a (change we can believe in) he will ask you to accept this change and give up your mortaged homed to the goverment for liquidation to pay off the national debt from a declared bankruptcy. WAKE UP PEOPLE AND SEE THE TRUTH COMING BEFORE YOUR EYES AND PAY OFF ALL DEBT RIGHT NOW BEFORE THE UNION OF AMERICA COMES TO TAKE IT FROM YOU.
Catherine, what can I say? When I first came across you, perhaps a couple of years ago, when I saw Mike Rupperts video “The Truth and Lies of 9/11”, my eyes began to open. Then when I checked out this site and read “The Aristocracy of Stock Profits” the scales fell dramatically from eyes. I can honestly say that you have had a dramatic impact on my education, changing my paradigm of the world completely.
Since that time, although I am Irish and living in Ireland, I have been using every opportunity to share this education that I can find. I get a real sense that this is a pivotal point in history, when the possibility of real change may be at hand, if we survive the criminals running the show with their lust for war. At times I feel as if we are back again in 1914, on the cusp of Armageddon, and yet if enough of us challenge the status quo with conviction, it may yet be possible to finally build a civilisation worthy of that name. Should we succeed in this, then the name Catherine Austin Fitts will be inscribed in History. You moral force and integrity leaps off the page. God bless you and keep up the vital work.
Ralph:
If the banks are to have any hope of recapitalizing, it is essential for gold and silver to be surpressed. The Lehman bankruptcy says that the strategy is not working. So does the inability of the physical precious metals markets to clear at these prices. It will be quite interesting to see what happens this week now that a global syndicate is going to fund the next round of bailouts.
JHK:
If no one wants to hear about what is really going on, how come I can’t keep up with the questions I am getting?
🙂
M Henkels
I am so sorry. I wish I could have found a way for EVERYONE to hear what I was saying in time. It was terrifying to watch this develop and unfold year after year after year.
Onwards….
Branematter:
Forget the pitchforks. Shift the money and shun the perpetrators and we can completely change the game without giving anyone the right to arrest us and eat up our assets in legal fees (which fund them!)
Joyce:
It is improper for me to give investment advice. I don’t know your full background, etc. I would recommend you listen to my audio seminar, Positioning Your Assets for Growth in Uncertain Times. I believe it would help you understand some of the considerations involved in this kind of decision.
Fred:
You are most welcome! Thanks for taking the time to post a kind word.
Susan and Micheal:
The system is much deeper — and deeply bipartisan. It is all of us, alas….
Mary:
You see into the engineering of the “dump.” Thanks so much for posting. The more we can teach each other the mechanics of the manipulations, the less powerful they will become.
Thanks!
Catherine
Michael,
You are correct. The manipulation of the interest rate by the Fed created the housing bubble. The administration tried to keep the economy afloat with building. It was the only thing putting money back into economy on a large scale, keeping up employment. Running out of qualified buyers, the Congress allowed the GSE’s to support lending to unqualified buyers. The lobbyists for the building industry and the mortgage industry pushed for this.
There became a glut of housing as all the buyers got absorbed. Then the defaults from fraud withing the mortgage industry and the unqualified buyers started hitting the books.
The exclusion of credit card debt from bankruptcy was supported by one VP candidate. This relief valve for individuals protected the banks, enslaving those with credit card debt. Making credit card debt more expensive encouraged people to take out home equity loans. Now those loans are in jeopardy as the market value of property doesn’t support the loans, and people can’t get out from under the loans that leave them no equity.
Raising interest rates would cause the prices to fall further.
The SEC refuses to do its job of regulating the market. Instead of stopping the trading of counterfeit shares (called share entitlements), they grandfathered the counterfeit shares and removed the uptick rule that allowed for the bear raids that ensued. They allowed more counterfeit shares to enter the market via the options market maker exemption to give the OMM the risk free position of selling options while selling non-existant shares.
Seeing the above fraud makes it easier to see how the same counterfeiting teqhniques can be used in the bond market. Selling assetless-backed bonds increases the leverage for the counterfeiters. They could buy more mortgages and package them over and over. The profits from packaging and selling the bonds to foreigners with cash made it worse as China and Russia were buying our assets. Now China and Russia are on the hook for the bubble. The ratings agencies were perverse as they have a profit-motive to over estimate the quality of the bonds. Once the market acknowledged the lack of assets, bonds deteriorated. China sold off 10% of its holdings.
Holders of bonds can use them for collateral on more loans. When the bonds quality comes into question, the ratings are dropped and collapse begins.
Two years ago, China was concerned about their boom. Somehow they recognized that they couldn’t endlessly build as we had done.
Our system with paid lobbyists, on-the-take politicians who are motivated to push uneconomic rules for campaign contributions and kick-backs has made the U.S. economy unsustainable.
Dear Michael and Susan,
How long have you been reading CA Fitts? Have you read her articles at all? It is obvious to most of her readers, thanks to her incisive analysis of the Tapeworm Economy, that it is the two nominal wings of the CRIMINAL CORPORATE Party to blame for the duplicitous collapse of our Global Economy. (translation for those not familiar with the Popcicle Index: Democ-rats and Re-pub-li(e)-cans). By playing ‘Good Cop/Bad Cop’ like personas,each “winning’ some battles and “losing” some battles, the groundwork has been laid to capture all our communities’ real assets in a pincer movement to enrich the criminal oligarchs. It is pointless to panic and lay blame. All we can do is demand accountability from ourselves and others, demand redress and rebuild locally because this is what each of us can most easily oversee. Personally, my latest mental discipline in this area is to remind myself,” It is not for me to give and take. Conscientiously,with gratitude, I share and receive Thy gifts “
SUSAN. Dear, what have you been smoking or drinking? The Housing Debt Crisis began right after the REPUBLCIANS took the President, Congress, and Senate in January 2001. When Republican Fed Chairman Greenspan lowered rates too much and for too long. The Republicans on Wall Street demanded the sub prime loans so they could make a big profit selling them. And the Republcian Bankers and Mortgages Firms wrote theses bad loans that have collapsed…SUSAN, please get your facts correct. This entire credit debacle has REPUBLICAN fingerprints all over it. Now Why didnt the Republican Congress in 2001-2007 stop sub prime from being written then? There was a BIG WARNING by Fed Governor Gramlich…
The Republicans in Charge said NOTHING and did NOTHING.
Just less rules and less regulations, right Susan?
Until the Democrats took over the House and the Senate AMERICA WAS PROSPERING!!!
The Housing Market fell off the cliff the same month Chris Dodd became the Chairman of the Senate Banking Committee. Read his acceptance speech and focus on the items he intended to address and fix. http://dodd.senate.gov/index.php?q=node/3680
FIX, you got to be kidding! Once he attacked Predatory Lending (code for Subprime), Mortgage Banks failed/closed rapidly, and limiting resources for millions of homeowners to refinance out of their adjustable loans. But what He/or the Democrats didn’t understand was that was a needed/necessary tool in the housing market. Fannie and Freddie Mac needed subprime, millions of B/C borrowers needed subprime.
If New Century, Fremont, Option One, Ameriquest, Long Beach, Delta Funding, WMC Direct, First Franklin were still in business, MILLIONS OF AMERICANS would have the options available to them to get out of FORECLOSURE. Subprime was not the evil that it was sold to the American public to be. As you now see, it was the tool that was needed to keep the American Housing Industry afloat. More people achieved the American dream of Homeownership under George Bush than any President, more minorities too. Now more people will lose the dream, more people will lose their equity savings to send their children to college, more banks will fail, the FDIC will fail under the Democratic House and Senate than ever before..
The entire USA mortgage industry is under the control of the government. Where is free-enterprise???
The unemployment rate soared to a nearly five-year high in August 2008 as employers trimmed jobs for the eighth straight month, the government reported Friday.
The unemployment rate rose to 6.1%, the HIGHEST level since September 2003. That’s up from 5.7% in July and 4.7% a year ago.
In addition, the economy suffered a net loss of 84,000 jobs in August, according to the U.S. Department of Labor, compared to a revised reading of a 60,000 job loss in July.
The U.S. economy has lost 605,000 jobs so far THIS YEAR ALONE.
Tell the 605,000 families that are now without income to buy food, clothing, or provide shelter for their families.
Manufacturing lost 61,000 jobs, while construction employment fell by 8,000. But the job losses were widespread and went beyond those two troubled sectors.
Retailers trimmed 20,000 jobs despite the back-to-school shopping season, which for many stores is typically second in sales only to the holiday period. Business and professional services – a broad category that includes industries such as accountants, consultants and legal services – lost 53,000 workers. Leisure and hospitality cut 4,000 jobs.
These jobs were lost due to the policies of the Democratic ruled Senate Banking Committee. All of these jobs relate to the Housing Industry. Now you have states and cities buying foreclosures for 20 cents on the dollar, to rehab and resell. To who? Why didn’t those states and cities buy the mortgages and let the citizens stay in their homes. The states and cities are low-balling the banks, creating more losses, which translates into more job losses, more banks failing, THE FDIC FAILING. Read this article in Time Magazine http://www.time.com/time/nation/article/0,8599,1840329-1,00.html
If states and cities have $3.9 billion dollars lined up from the Federal Government to buy and rehab foreclosed homes, why not use that same money to open back up Mortgage Banks that will refinance the homeowners into a affordable mortgage. It seems to me we are being duped in this housing crisis and I want it to stop and for the real culprits to be exposed.
California’s attorney general is reviewing a request by former employees of IndyMac Bancorp Inc to investigate whether a New York senator triggered the bank’s collapse by releasing confidential information. http://www.zimbio.com/Senator+Charles+Schumer+of+New+York/articles/28/Chuck+Schumer+Being+Investigated+IndyMac+Failure
This has been the work of the Senate Banking Committee for the past two years, spread rumors about a bank, have the investors lose confidence, freeze the credit lines, sell the stock, and collapses the bank. The question is why? What’s going on? Is it to insure that the Democrats take the White House too? LISTEN AMERICAN PEOPLE ARE SUFFERING, LOSING THEIR HOMES, ALL BECAUSE THE DEMOCRATS WANTED TO WRECK THE ECONOMY, SO THEY COULD RUN ON THE “I CAN FIX THE ECONOMY PLATFORM”. IT’S CRIMINAL!!!
Dear Catherine,
Thank you so much for providing this website and this service. I have read the Dillon Read case, as well as of your background at HUD. You are a true warrior, and from what you have seen and experienced I can see the frustration you must go through. I am very amazed, impressed, and thankful that you do keep us informed and advised as well, as often and as thoroughly as you do. I just want you to know that I for one am very appreciative of what you are doing and I continually check this site. Thanks.
Dear Catherine, I am holding a $100,000.00mFannie Mae Bond and wondering if I will be receiving the interest payments that are due in December and June of each year. This F&F thing makes me nervous because we can not afford to lose any money on this bond. I sometimes feel we should be getting rid of it but as a fixed income source I have no idea where to invest that money. What would you or anyone else reading this do? Sell or hang on?? Thanks for any reply.
MHenkels,
So I guess you get to pay twice. Just lovely, huh?
Flood the market with repos and destroy the property value of even those who made good loans with good credit, and made reasonable bets (given the appearance at the time) based on a market they thought was legit. Now you get to pay for the ‘bailout’ as well.
‘Spiritual’ is fine, but just maybe it’s a good time to store beans and bullets as well.
Katherine,
Count me among those who have been financially ruined. I bought a beautiful old commercial adobe in Santa Fe. It’s now on market & competing with 100,000 sq ft of new space. What seemed impossible to fail has. I love your work & also follow Jim Sinclair at http://www.jsmineset.com.
the only solution for me now is spiritual. They can only factor in what they know. Mexico’s economy is off-grid. The people have their own ways of making it. Perhaps that is something the US will come to know. Whatever the solutions, they will only come if we reject powerlessness in all forms. Desire to live as we choose has been turned into living as they market us to live. There are other ways.
We will find them if we have the will to thrive. keep up the good work, Margret
This has got to be the biggest robbery of the U.S. taxpayer in history! And, of course, it WAS intentional.
A blank government check, backed up (wink, wink) by the U.S. taxpayer, then run up a massive debt in bad mnortage loans, repackaged out to foreign inverstors… well, it’s just about the perfect ripoff scheme. It’s kinda like a welfare state for the super-rich! A license to rob at will.
Add to this the astronomical transfer of wealth in the form of money spent for foreign oil, the massive war debt (all borrowed money) with no end in sight (not to mention the state of social security), prevent collapse by more massive borrowing, and then just tell everyone all is well and the economic numbers are really not all that bad!!! Incredible. And we are probably only seeing the tip of the iceberg. I’m no economics wizard, but I know cooked books when I see them!
There is only one solution to all this: pitchforks and mass hangings in D.C.! But, no, the people are all asleep… We get to choose between Obama or McCain, and we are dumb enough to think we are making a real, significant choice that actually matters! Does any thinking person really believe that those who run the world give a hoot whether it’s Obama or McCain? It’s meaningless.
Catherine, I think the plan is slavery to the NWO. Because the USA can not repay it’s debt with money, it can pay in “performance”. Wolfowitz has been involved is structuring the World Bank to “collect”. The laws are already on the books for the USA to force labor on it’s people. Now they will do that in payment of the debt our leaders intentionally let get out of hand. Well, that is out of hand to you and me, not to them.
It will most likely start by using US troops to enforce UN policies and then will gradually move into the population. Our troops will be on foreign soil and foreign troops will be on US soil. Welcome to the new “Soviet” style communism brought to you by the wonderful Communitarians and Neocons running our government. The sooner we get rid of the IRS, the Federal Reserve and elect peole like Ron Paul to positions of power, we deserve what we get for our apathy.
It takes and active, interested, and moral citizenry to maintain it’s freedom. The people of the USA are none of that anymore. No one even wants to hear any of this.
Dear Catherine,
What are the implications for Gold/silver now that FNM/FRE have been nationalized. The metals are clearly under brutal attack. Physical gold/silver is scarce, yet futres collapse everyday? Please shed a little light if possible? Thank you so much. Love your work.