Loanowners are speculating their newly found equity in the stock market

 NEWS
Apr 062013
 
Loanowners are speculating their newly found equity in the stock market

This is a window inside the mindset of the 21st century ponzi loanowner. This is the worst recession in post war history, and home owners that lucky to now have equity in their properties are taking it and gambling in the stock market. Is paying down your mortgage such terrible financial act to commit? It shows that a home is not shelter to the Ponzi, but a financial speculation product to use to support their lifestyle. This will be new cohort of loanowners that will find themselves with negative equity if mortgage rates have a rapid increase. This will result [Read More...]

Can you name all the bailouts to banks, homeowners, and government sponsored enterprises? It’s many more than you think

 NEWS
Dec 222012
 
Can you name all the bailouts to banks, homeowners, and government sponsored enterprises? It's many more than you think

Last week I published a post that predicted that the Federal Reserve will start bailouts by performing principal reductions for underwater homeowners. I wanted to detail exactly how did we reach that stage. So, I wanted to briefly detail the last five years of housing bailouts. It was just an impossible task to sum up in a few paragraphs due the sheer number of programs. If fact I should have have created this list first, would have made writing easy. I will attempt to name the program, the beneficiary of the program, and a brief description of the program. California [Read More...]

The deleveraging myth exposed: Generation Ponzi doesn’t pay down debts

 COSTA MESA, NEWS
Oct 262012
 
The deleveraging myth exposed: Generation Ponzi doesn't pay down debts

When consumers take on debt, eventually it’s paid off. Debt is not an asset people spend their lives accumulating, at least it’s not supposed to be. Paying off debt is a process known as deleveraging. In a growing economy, young people take on debts to buy cars and houses while old people pay off debts. In aggregate, debts should grow at a measured pace. When lenders make debts grow too fast, the economy becomes over-stimulated and debtors become insolvent. When large numbers of borrowers become insolvent, a credit crunch ensues, and the bills come due. This flushes out the Ponzis [Read More...]

Second mortgages hold short sellers hostage

 LAGUNA NIGUEL, NEWS
Jul 252012
 
Second mortgages hold short sellers hostage

Why do short sales take so long? Basically, banks don’t want to take a loss, and short sales cause them to lose money — a lot of money. Short sales come in two basic varieties; properties with second mortgages and properties without. If a property does not have a second mortgage, short sales are generally quicker and easier to approve. The first mortgage is often covered by mortgage insurance, and as a percentage of the total loan amount, any losses are generally small. If a property has a second mortgage — and millions do — then the situation becomes much [Read More...]

Top ten ways to protect taxpayers against Ponzi mortgage theft

 NEWS, SAN JUAN CAPISTRANO
May 302012
 
Top ten ways to protect taxpayers against Ponzi mortgage theft

How do we taxpayers protect ourselves against Ponzi mortgage theft? Prior to the collapse of the housing bubble, when lenders gave free money to loan owners, it was theirs to give — and to lose. But when the losses overwhelmed our banking system, the government took conservatorship of the GSEs, and they backstopped the largest banks with our too-big-to-fail guarantees. With those two steps and the dramatically increased market share of the FHA, the government now assumes nearly all risk of loss in the US mortgage market. With taxpayers absorbing future losses through explicit and implicit guarantees, lenders have every [Read More...]

Federal reserve official promotes principal reduction and Ponzi borrowing

 BUENA PARK, NEWS
Jan 122012
 
Federal reserve official promotes principal reduction and Ponzi borrowing

The federal reserve exists to create moral hazard. Their policies are designed to lessen the impact of the financial cycle, make booms less of an upswing and make busts less of a drag. However, the recessions at the end of a long boom are necessary. Unsustainable Ponzi-based business plans and lending programs must be purged. If these business and lending practices are allowed to continue, the improper allocation of resources becomes an even larger drag on the economy. Ponzi borrowing from mortgage equity withdrawal is one such lending practice that must be purged from the system. All Ponzi schemes are [Read More...]

The California economy is dependent upon Ponzi borrowers

 NEWS
May 252010
 
The California economy is dependent upon Ponzi borrowers

Ponzi borrowing and HELOC Abuse Most people fail to budget properly for unexpected expenses or expenses that do not occur monthly. When these expenses occur, most will borrow the money, often on credit cards. During the year, this debt will accumulate like tooth plaque, and at the end of the year, many debtors hope for a work bonus or a tax refund to clean the debt from their balance sheets. Homeowners, particularly in California, would go to the housing ATM and add to their mortgage to pay for these un-budgeted expenses of daily life. The sad reality is that this method of Ponzi borrowing can work as long as (1) the [Read More...]

Go Ponzi, young debtor! Managing finances the California way

 NEWS
May 242010
 
Go Ponzi, young debtor! Managing finances the California way

Borrowers bow down before their lenders. Borrowers give up control of their own lives when they take on debt as their time and effort go toward paying for the past rather than investing for the future. Borrowing is a weakness, a crushing weight, a debilitating pile of paper detailing a life of servitude in exchange for a borrower’s entitlements. Of course, most borrowers don’t see it that way. They feel powerful. Borrowers believe they are rich because someone was willing to loan them money. The more money people borrow, the stronger they feel and the weaker they get. Ponzi Schemes of debt are the highest form of borrower [Read More...]

California personal finance: Ponzi style

 NEWS
Apr 272009
 
California personal finance: Ponzi style

Imagine living in a world without consumer debt. The first credit cards did not appear until after WWII. Prior to WWII, if you wanted to buy something, you needed to save money from your wage income until you could afford to pay cash for it. There was an absolute dependency upon wage income to provide a lifestyle; living beyond your means was not possible unless you had previously saved money, and it could not continue beyond the day you went broke. Times have changed. With the invention of credit cards, it became possible to borrow from future earnings to live [Read More...]