The "Own Your Own House Scam"

Isen't there a pattern somwhere...?

Given now how devastating these lending frenzys and housing bubbles are to the working people and the real economy - why on earth have politicians promoted so extensively the "dream to buy you own house"? Sure that was one of both Reagans and Thatcher political cornerstones and then most of the politicians as well as media in the now over indebted western world.

Possibly an idea pushed by bankers...and then promoted by bought politicians and economists to the public..

Canada is one of the few Western economies to have rebounded strongly from the Great Recession. Indeed, in some ways it’s as if it never happened. Annual output has surged above the previous peak in 2008. The trade surplus in December rose to a three-year high. And all the jobs that were lost during the downturn have been recovered.

What’s more, Canada has managed to pull this off without spending money like mad. This year’s government budget deficit (the shortfall of tax revenues against state spending) will only be about 2.5% of GDP.

And in fact, the final figure looks set to be even better than official forecasts. Compared with the near-double-digit deficits that seem the norm these days, that’s quite remarkable.

There’s just one problem. The country has been inflating its own massive housing bubble. This could undo all the good work done elsewhere – and present smart investors with some profit opportunities…
http://www.moneyweek.com/investments/property/rest-of-the-world/canada-house-price-bubble-20700


The Ring Of Fire
http://intheendwerealldebt.blogspot.com/2012/02/ring-of-fire.html

Economic hitmen and the "own your own house" scam
http://intheendwerealldebt.blogspot.com/2011/03/economic-hitmen-and-own-your-own-house.html

In fact President Obama has made his life career based on making it possible to loan also to people without any credit worthy ness what so ever. Enter the Sub Prime debacle..

Obama administration pressures banks to make risky loans
US Agencies played a larger role in the housing crisis than we first reported. In January 2009, I wrote that the housing crisis was mostly a consequence of the private sector? However, over the last 2 years, analysts have dissected the housing crisis in greater detail. What emerges from new research is something quite different: government agencies now look to have guaranteed, originated or underwritten 60% of all ?non-traditional? mortgages, which totaled $4.6 trillion in June 2008. What?s more, this research asserts that housing policies instituted in the early 1990s were explicitly designed to require US Agencies to make much riskier loans, with the ultimate goal of pushing private sector banks to adopt the same standards.?
http://washingtonexaminer.com/opinion/opinion-zone/2011/05/obama-administration-pressures-banks-make-risky-loans/145413