I can assure you that none of the plans we will see will benefit the stupid homebuyers that got in over their heads, except that they will be able to effectively rent their houses indefinitely. They will never build any equity, they will never own them. Here’s what will happen:
* Banks will get government to pay them for their bad debt losses. They keep the houses, effectively purchasing them with free money from the government.
* The banks will allow the overextended homebuyers to remain in the homes by extending the mortgage terms or doing indefinite interest-only loans. The “homebuyers” will get to stay in the house but most of them will never own it.
What is happening is the creation of a huge class of indentured servants beholden to the banking class, all financed with your tax dollars. Yes they will get to live in their McMansions, but they will be far from free.
The last thing the banker class wants is lower house prices! If house prices revert to their true value, many savers will purchase them and the bankers will be cheated out of large amounts of interest income. By keeping the houses in weaker hands they can ensure a steady stream of interest nearly indefinitely. This is only possible because the government is giving the cash to finance the operation.
100 years ago most homes were eventually owned by those who lived in them. 30 years ago, a lot of people paid their mortgages off before they passed away and their children inherited real property. Now, very few people will ever pay these houses off and they will remain in the hands of the banker class forever. Your tax dollars are going to purchase homes and give them to the bankers. They can rent them to “homebuyers” forever and earn interest, they never have to do any repairs (that’s the responsibility of the “homebuyer”). When one “homebuyer” passes away or can no longer make payments, it goes to the next “homebuyer” who will likely be in the same boat. It is pure evil genius.
Welcome to the USSA comrades. The TRUE FACE of your government is now becoming visible; it is not the president or congress or the courts, they are only the administrators. The banks run this show…
