How Alan Greenspan Destroyed America

[katsung47]

How Alan Greenspan Destroyed America


The Guardian / By Dean Baker

The former Fed chair is promoting his new book. He should admit his role in the housing crisis, not insult our intelligence.
October 28, 2013 |


Alan Greenspan will go down in history as the person most responsible for the enormous economic damage caused by the housing bubble and the subsequent collapse of the market. The United States is still down almost 9m jobs from its trend path. We are losing close to $1tn a year in potential output, with cumulative losses to date approaching $5tn.

These numbers correspond to millions of dreams ruined. Families who struggled to save enough to buy a home lost it when house prices plunged or they lost their jobs. Many older workers lose their job with little hope of ever finding another one, even though they are ill-prepared for retirement; young people getting out of school are facing the worst job market since the Great Depression, while buried in student loan debt.

The horror story could have easily been prevented had there been intelligent life at the Federal Reserve Board in the years when the housing bubble was growing to ever more dangerous proportions (2002-2006). But the Fed did nothing to curb the bubble. Arguably, it even acted to foster its growth with Greenspan cheering the development of exotic mortgages and completely ignoring its regulatory responsibilities.

How Alan Greenspan Destroyed America | Alternet

Alan Greenspan is just a puppet who carried out his master's order. The real mastermind is the Feds. (FBI) They hold large quantity of houses in my case and need a low interest rate to maintain the value of this property. So though Greenspan is not on the seat, Bernanky or his follower will still keep the interest rate low. That's why you saw they keep the QE programme on and continue to print money.

 

[SteadyMercury]

America is not destroyed, so I have no reason to read farther to get an explanation.

 

[katsung47]

739. The third housing bubble (10/1/2012)

This was what happened in 1990s. The Feds started to buy in the real estate property from 1990 when they drove down the housing price. In 1997, when they found I trying to buy a house, the Feds passed the “Taxpayer Relief Act” to check other buyers from competition. Then they pushed up the housing market with the “dot com” babble. Why? Because the area where I live is the Silicone Valley where the high tech. companies gather in and where the Feds hold a lot of property they bought in my case. The tactic was to encourage the establishment of new company. The high salary employee would boost the property price.

The “dot com” bubble exploded in 2000. The Feds might have made good profit in property market in elsewhere but the San Francisco Bay Area where they invested heavily in my case. How to release their wealth? Then came the second bubble.

In April 2001, Pentagon created EP-3 spy plane collision incident in South China Sea. In secret deal with China to release the spy plane crew, the Feds bribed China to frame a drug case in US. As a payback to Pentagon, the Feds helped Pentagon prepared 911 terror case. Silverstein leased WTC at that month. 911 also gave the Feds the Patriot Act they have longed for. (See: “695. The collusion of D.O.D. and D.O.J. (11/28/2011)&#8221

With Patriot Act and a framed drug case in hand, the Feds now was sure Kat Sung would be eliminated. What needed was a booming housing market. How to get it? By manipulate the Federal Reserve.

You can see how dramatically the interest rate dropped to the bottom in 2001 that created a housing babble US ever had which finally caused financial collapsing in 2008.

However, the property the Feds hold in Kat Sung’s case is still there, how to deliver the hot potato into other people’s hands? It’s still the mission of Federal Reserve.

Reuters – Wed, Sep 26, 2012.. .

(Reuters) - The U.S. Federal Reserve launched a new round of monetary stimulus this month, saying it will buy $40 billion in housing-backed bonds each month until the labor market improves substantially.

The Fed has kept interest rates near zero since December 2008 and now says it expects weak economic conditions will warrant keeping them there through at least mid 2015, half a year longer than it had earlier expected.
http://news.yahoo.com/factbox-fed-officials-comments-economy-policy-200444357--business.html

When Federal Reserve exhausted their interest rate tool, to help the Feds to break away from their straits, Federal Reserve will turn papers into money by printing 40 billion dollars each month – all of them will poured into the real estate market in order to create a third housing babble. This time, the bubble will come with severe inflation, I foresee.

 

[iamwhatiseem]

Alan Greenspan was not alone.
The main individual culprits were - Rubin, Larry Summers and Greenspan.
Just under them was Clinton and Gingrich.
Then both houses.
Then the SEC.
Everyone else just took advantage of the situation created by the above.

 

[Mac1958]

.

Yeah, it's always that guy's fault, that guy over there.

The Meltdown was caused by a wide variety of culprits over at least a couple of decades. Examples:

• Politicians who pushed loans for people who shouldn't have had them
• Ratings agencies that completely fucked up and over-rated many securities
• An abject failure of regulatory agencies to do their fucking job
• Greed on the part of a variety of financial services operations with a variety of securities
• Consumers who willingly signed on the bottom line for a home they knew they couldn't afford
• A culture of conspicuous consumption at all income and age strata

But I know it's much easier to just blame that guy, over there.



.

 

[iamwhatiseem]

.

Yeah, it's always that guy's fault, that guy over there.

The Meltdown was caused by a wide variety of culprits over at least a couple of decades. Examples:

• Politicians who pushed loans for people who should have had them
• Ratings agencies that completely fucked up and over-rated many securities
• An abject failure of regulatory agencies to do their fucking job
• Greed on the part of a variety of financial services operations with a variety of securities
• Consumers who willingly signed on the bottom line for a home they knew they couldn't afford
• A culture of conspicuous consumption at all income and age strata

But I know it's much easier to just blame that guy, over there.



.

Boooosh

 

[hoovie13]

I think many of us on here could agree that Alan Greenspan did not do us a favor in watching out for our economy and the housing market in specific.

However, I also think that we who live in this country do have a responsibility ourselves to pay attention to what is taking place economically and make sure that we do not buy into a housing market that we are not financially able to participate in. I also think that we have the responsibility to challenge anyone in office if they need to be challenged and if they are neglecting their responsibilities. As Americans, we should have questioned and challenged the practices and information given to us by Alan Greenspan.

The unfortunate and unjust thing however is that his actions and silence have seriously harmed many Americans' lives. I do believe that he owes us an apology. But what is more, he should not only apologize but prove that he is truly sorry in his future actions. I think it is a shame that in this country someone can deeply contribute to the ruining of hundreds + lives of people but then neglect to even take responsibility for their actions. They refuse to acknowledge their wrongs and offer an apology. It is very indecent.

My family has been affected by the economic downturn as many other American families have. My father has lost his job multiple times due to his employers not being able to have as many employees. I am about to graduate from college and like many others I have debt. Not as much as most students but I still have some. So I have been personally affected as well.

This needs to be a lesson learned for us. Do not keep people in office and in positions that they do not fill well. And let us all learn what our part is in this

 

[hoovie13]

I also would like to say though, that is was not Greenspan alone. Many, Many other contributed to our economy being the way that it is. Many in governmental positions and many on Wall Street. So, yes he played a part in the downturn but he was not the only leading character.

 

[katsung47]

733. Swimming pool speaks (8/20/2012)

In 1990s, when I abandoned driving, I used to walk to the super markets. I was impressed by the large noise of cheering children in a swimming pool along Amberwood Ln. The pool belongs to a Condo community. Probably started from 2000, the children disappeared. I was too, impressed by the dead silence when I passed that swimming pool. The Feds must have moved all families away. (at least the families with children) I realized how large scale the case was that the Feds applied on me.

This year, I learned the skill to post the picture to the internet. On August 5, Sunday, between 4 pm to 5:30 pm, I took pictures of the two swimming pools near my residence. Summer will end. New school year will soon start. The swimming pool is as dead as it was in recent decade.

8/5/2012 Sunday 4pm Amberwood Ln.

8/5/2012 5:30pm Sunday Alves Circle, Croply Rd.

1,2. Swimming pool
3. Public park
4. Small World Pre-school

 

[JimmieD]

Alan Greenspan is just a puppet who carried out his master's order. The real mastermind is the Feds. (FBI) They hold large quantity of houses in my case and need a low interest rate to maintain the value of this property. So though Greenspan is not on the seat, Bernanky or his follower will still keep the interest rate low. That's why you saw they keep the QE programme on and continue to print money.

The FBI owns large quantities of houses?

 

[katsung47]

Alan Greenspan is just a puppet who carried out his master's order. The real mastermind is the Feds. (FBI) They hold large quantity of houses in my case and need a low interest rate to maintain the value of this property. So though Greenspan is not on the seat, Bernanky or his follower will still keep the interest rate low. That's why you saw they keep the QE programme on and continue to print money.

The FBI owns large quantities of houses?

Yes, in San Francisco, San Jose Bay area. That's why the housing price there is the toppest in US right now.

734. Wang's family (8/29/2012)


With two decades long experience, I get familiar with some tactics used by the Feds. One tactic is they always having their agents or informants to befriend with the target as close as they can. They changed colleagues of my wife by introducing her to a new company. (See "32. "Operation Fire Dragon"") They changed all playmates of my daughter even she was still a child. As for me, they arranged a "Wang family".

In about 1992, the Flea Market had a re-arrangement of selling space. My new neighborhood was Mr. Wang. Mr. Wang spoke my native language - Shanghainese. Besides selling in Flea Market, he also ran a restaurant. (see "25. Neighbor seller and gun" and "181. Soup (11/21)") He had two sons whom ran a moving company. His youngest son (Wang Y. son) also doing business in flea market. Wong Y. son found Mao (importer) and start to sell same porcelain figuring as mine. He had a retail space in front of mine, so he intercepted business from me. In wholesale market, he beat me with losing money price. I puzzled with the low price he could wholesale. How could he make living on that? Later I realized that he was only a tool of the Feds being used to push me out of business.

Mr. Wang used to chat about the moving business his son ran. Once he was absent in weekends. When he appeared next week, he said he had a long distance moving order. A Korean customer moved from California to East Coast because the company he worked for was re-located. When he detailed the furniture that customer had, I had a feeling there was no privacy for a moving company. I once wondered why a big company would cost that much to moving from San Jose to Austin. Now I think it was just a warrantless search by the Feds. They control the CEO of the company and the moving business. They could carry out such tactic when they think it's necessary.

Since Wang Y. son gave me a hard time in business. I was alert on their action. One day in that year, I saw a carry on van looked like Wang's moving company's in the end of the street. I went there to have a look. It was Wang's moving company. Mr. Wang was moving out furniture for a resident. It was the first time I realized that the Feds were emptying my community.

Sometime later, when I stopped my car before a red light at a crossing road, I suddenly recalled that I didn't tell the teacher of the pre-school that I would come to pick up my daughter later that day. I turned back my car towards the pre-school. Shadowvale Dr. is a back street from my residence. I rarely use it. But that day, from main street to pre-school, it could be a short cut. So I drove that way. I was surprised to see Mrs. Wang hurried out from a lane in Shadowvale Dr. It was seven something in the morning. She was obviously going to work. Mr. Wang's residence was in Milpitas at that time. How could his wife live in my backstreet?

The two events broadened my knowledge - the Feds like to empty target's neighborhoods and move their informants in.

 

[katsung47]

735. The close of Small World Pre-school (9/3/2012)

In early 1990s, I had my daughter attending a Small World Pre-school. It was not far away from my home. It took about five minutes to walk to there. There were a lot of children in Small World Pre-school when she was first there – probably about 20-30 something. Then the number shrank suddenly to about 10 or less.

In 1994, because the constant EM-wave radiation harassment from the Feds, I left to China. My daughter went to a primary school. When I returned from China, the Small World Pre-school shut down. There was no demand for it. The Feds had moved most ordinary residents away from my community.

The public park next block to my residence also deserted. Though it was well maintained but rare people were seen there. The playground was used to be full of kids. My daughter got her three play-mates there. They disappeared after their families moved away. The Feds arranged three new play mates for her.

Here are pictures I took on Sunday, 9/2/2012 at 10 in the morning. The park remained like this for the most time.

park 9/2/2012 10:00 am Sunday

park 9/2/2012

Since I started this thread, several times I talked about the deserted park. Then occasionally there was a kid or two playing there. Sometimes there even was a barbecue gathering. These were cover up operation.

After I wrote “733. Swimming pool speaks (8/20/2012)”, I started to see a kid or two playing in the swimming pool. I knew that’s a cover up response to my revelation. I used to go shopping in afternoon, I broke my habit to go in the noon. On Saturday, Aug. 11, 11:40 am, I passed that swimming pool. No, nobody was there. It was a hot day, the high temperature was 92F degree.

 

[katsung47]

736. CASH FOR HOUSE (9/12/2012)

In early 1990s, many unusual things happened. Mr. Wang’s moving company moved my neighborhood out from my community, his wife was seen living in my back street, the Small World Pre-school shut down due to the disappearance of children, the desert of the public park…. All these indicated that the Feds had moved the residents away from my area. I was puzzled – it took a lot of money.

At the same time I found the Feds were bandits. They murder people to loot their wealth, especially when they have cash. My health had been hurt by the Isotope money. It should be used to track drug money. I never touch drugs. Why they applied it on me? Obviously they hoped to find a treasure of cash pile. Earnie might have died because he had too much cash stored. See:”7. Alleged murder of Ernie”, “ 8. FBI's profit”.

Another way to steal money from victims was through the stealing of credit card. See: “34. The lost Credit Card “.

So if such a criminal group bought a lot of real estate property, would they just for law enforcement? Of course they’d make money on that.

In later 1990s, I totally abandoned the driving because there was too much harassment and danger from a manipulated car. I turned onto public transportation.

One day while I was waiting for the bus, I saw an advertising board. A small one -the size like an election campaign board with politician’s name. It said,
“Cash For House
Call 1-800-9**-FAST”
Then I noticed this advertisement was everywhere. ** were numbers varied from different location. For example, ** in Oakland was different from San Jose. 9** might be the number for California area. In Florida it could be “1-800-***-FAST”. The firm behind this advertisement must be a big one. It started to collect property countrywide in later 1990s. It foresaw a booming real estate market.

This firm is a powerful one. It successfully blew up a housing bubble to harvest the profit until it popped off in 2006.

 

[katsung47]

737. The abolishment of assumable loan (9/17/2012)

After I found the Feds was buying the house countrywide, I expected they would push up the real estate price. I looked at the housing advertisement to see if there was one I could afford to. I wouldn’t miss the chance of a coming bull market.

I found a four bed room town house at the price of 80,000 and called the estate agent. I asked the agent if the seller had a loan that was assumable. She told me the assumable loan had been abolished for a long time, so it was impossible to find any more of this kind of loan in the market. It ended my attempt to buy a house in mid-1990s. The Feds control the bank and it was impossible for me to borrow any loan from the bank.

When I was going to buy my house in 1985, I was pre-warned by the manager that the company would be shut down. Two months later when I moved into my house, the company really shut down and I was unemployed. At that time I thought it was just a coincidence.

Many years later, I started to realize the house I bought was the target of the Feds. They murdered the former landlord. When the widow of former landlord tried to sell the house, the buyers failed to purchase due to the loan problem because the bank is controlled by the Feds. The continuing failure in deal forced the widow to lower the price of the house. I was in waiting list. When it was my turn, they shut down the company I worked. Bank wouldn’t lend money to unemployed.

I was able to buy the house because there was assumable loan – a loan pre-owned by the seller which could be transferred to the buyer automatically in house trading, no bank approval needed. It was a very popular loan at that time. With assumable loan and the money borrowed from my relatives, I bought the house.

Assumable loan was a good tool in real estate business. It benefits both side of trading. It makes a deal easier and faster for seller and buyer. But that goes around the interference of the Feds. (through the bank approval) I think it was my case that prompted the abolishing of assumable loan. Housing industry lost a nice tool just because the Feds want to maintain their fascist control.

 

[SteadyMercury]

I continue to be in awe at the level of absolutely off the charts level of pure psychosis that keeps on giving in this thread.

It is almost like being at the zoo watching something you've only read about thru a fence.

 

[Andylusion]

• Politicians who pushed loans for people who shouldn't have had them
• Ratings agencies that completely fucked up and over-rated many securities
• An abject failure of regulatory agencies to do their fucking job
• Greed on the part of a variety of financial services operations with a variety of securities
• Consumers who willingly signed on the bottom line for a home they knew they couldn't afford
• A culture of conspicuous consumption at all income and age strata

.

Politicians, yes absolutely.
Consumers, yes absolutely.
Culture, yes absolutely.

When Michael Jackson can make $100 Million a year, and have an estimated debt of $500 Million when he died.... that's consumer and culture, resulting in insanity.

And the politicians pushed it.

So I'm with you on that. However the rest of that, I'm not so sure about.

Greed.

Human nature hasn't changed in 10 years, 20, 40, 100, 200, 1000, 2000 years, 4000 years.

If the problem was greed, then why did the problem not happen 50 years ago? Or 100 years ago? Or 1000 years ago? There's no evidence to support that all the benevolent bankers of 50 years ago, magically became greedy all of a sudden. Just not a supportable claim.

Failure of the Regulators.

What evidence do you have of that? I can't find anything to suggest that the regulators were not doing exactly what they were expected to do.

Some people (I am not accusing you specifically), seem to get this idea that 'if there is a problem, then they were not doing their job'. That's not true. That's like saying if there is ever any crime, then police are not doing their job.

The police could be doing their job perfectly, and still have crime. Similarly, the regulators could be operating perfectly, and still have a crash.

Remember, banking by it's very nature is risk taking. You can't regulate out risk, or there would be no banking system at all. The very act of giving a loan, automatically includes the risk of default. The very act of investing, inherently includes the risk of failure.

But all of this ignores the fundamental problem of the regulators. The regulators are tools of the state. If the state wants banks to make sub-prime loans (which it did), do you think the state would allow the state regulator to at the same time penalize banks for making the loans the state wanted? Do you think Bill Clinton would allow the SEC to penalize banks for making the loans Bill Clinton pushed them to make? Can you imagine the fire storm in the press over that?

Of course not. When you realize this, the regulators were doing exactly as they were expected to do.

Rating Agencies.

First off, why do we even have a "big three" rating agencies? Why do we have Moody's, S&P and Fitch?

Here's the dirty little secret of the whole thing. Every time you regulate an industry, naturally by the very act of regulating it, you end up with a monopoly by a few state preferred players.

In the 1960s, there were dozens of independent auto manufacturers. In the 1970s they regulated the hell out of the auto industry. By 1980s, there were the big three.

In the 1960s there were dozens of rating agencies, and buyers went to their rating agency of choice, and paid them to rate investments for them. In 1975 the SEC created "Nationally Recognized Statistical Rating Organization", a certification which was bestowed on a few selected credit rating agencies. By the 1990s, there was only three.

Simply because the certification existed, it eliminated competition, because if S&P is certified, and some other agency is not, who is the average joe investment buyer going to go with? Well obviously S&P must be more trusted because the government gave them a certification.

In reality it had nothing to do with "trust worthy" as much as government agencies wanted a standard to buy investments with. Government workers Union, wanted a standard to invest workers pensions into.

So the Government Unions, and other government programs could only buy investments rated by S&P, Moodys, and Fitch. Well of course, now that the big three had a lock on those investments, they could start charging the issuers of those investments.

Before, the government workers union, would ask S&P to rate X investment for them, and then decide to buy it. Well of course, if the investment was bad, they spent the money to have an investment rated that they didn't use. But now, if you have an investment, and you want any government agency (the largest buyer of investments) to buy your stuff, you have to have a S&P rating..... and S&P knows it. So they can charge you to get that rating, or your investment won't sell.

The government setup this whole deal.

Additionally, and this is something that a ton of people don't know.... but the very first AAA rated sub-prime loan, was because of a contract by Freddie Mac.... which guaranteed the sub-prime loan, with the AAA rating.

So even the rating agencies were following the dictates of government.

 

[katsung47]

738. Taxpayer Relief Act of 1997 (9/26/2012)

Although I gave up the attempt to buy a house when I learned that they abolished the assumable loan, the Feds had a swift response to my housing inquiry. In following month I found the housing price went up. Low price house disappeared from the list. Furthermore, soon there came a new law:

Taxpayer Relief Act of 1997

In 1997 President Clinton signed into effect the Taxpayer Relief Act of 1997, which included the largest capital gains tax cut in U.S. history. Under the act, the profits on the sale of a personal residence ($500,000 for married couples, $250,000 for singles) were exempted if lived in for at least 2 years over the last 5.t

When I heard this Act, I realized it was a measure to suppress other buyers to make money in a coming housing babble blown up by the Feds. Investors won’t buy in a downwards market. They emerge in an upwards market. This Act blocks other people to compete with the Feds in real estate market once the Feds blowing up a babble. Common buyers have to wait for five years if they want to make good profit while the Feds had the houses in their hands for years already. The Feds started to empty my community and buy in the house in 1990 .

San Jose Real Estate Market: Trend, Analysis & Statistics
Annual Home Price Appreciation Rates

1989 25.87%
1990 -6.11% --(I knew Mrs. Chen in Galt Flea Market. Apparently she was the Feds’ target already. The Feds started to buy houses.)
1991 -0.99% -- (Mrs. Chen was arrested for Heroin smuggling.)
1992 -1.78%
1993 -2.78%
1994 -1.40% --
1995 2.43% --
1996 5.48% -- (Saw “Cash for house”. Attempting to buy a house)
1997 13.22% -- (Taxpayer Relief Act passed)
1998 13.08% -- (dot com babble)
1999 13.74%
2000 29.07% -- (dot com babble broke up)
2001 0.79%

San Jose Real Estate Market Forecast | ForecastChart

You can see how the Feds drove down the real estate value dramatically in 1990 when they started to buy in. Around 1996, when I recognized there would be a booming estate market and attempted to buy a house, how the Feds checked the other buyers with that five years new rule - Taxpayer Relief Act of 1997 and pushed up the housing market in following years. The first housing babble popped off before the five year ending of new “Taxpayer Relief Act”. You can see it from the Chart.

 

[katsung47]

740. Seize the house and frame a case (10/10/2012)

About two decades ago, I was impressed by a news story. It was about how a black family losing their house. The family had a dispute with the government on some fee. The government seized their house and auctioned it in a very low price only about a fraction of the house value ( I forgot the detail. say, if the worth of the house was 150 K, the buyer got it for 15 k.) The buyer was an attorney worked for the government.

Of course the news story was not for that black family but for that attorney who bought the house. It said he was harassed by perpetration such like the windows was broken by stones from time to time. It hinted that was a revenge from the black family who lost their house.

What I learned from this story was that government squeezes people by their law system and the beneficiaries were government officials. Later I found the Feds actively murder the people and loot their wealth. Several times I found the homeowner Association deliberately delayed to mail the yearly service fee bill to us. One year I even didn’t receive the bill until it was overdue. I thought it was attempt to take over the house.

The yearly property tax is due on November 1st. Usually the bill is received in September or earlier so we have a plenty of time to mail the check. This time, until October 4th I didn’t receive the property tax bill. I asked my wife if she had taken it. She said no. Obviously the Feds have held the letter. They plan a framed case in later October and hope to seize the house if we miss the chance to pay the property tax.

On Sunday (10/7) I found the tax bill letter in my mail box. Someone put that letter there on Saturday night. I think it was my question to my wife rattled the Feds. They released the letter on Saturday night. But the attempt to seize the house doesn’t change. My wife refused to write check. It is unusual. She must have been threatened by the Feds. They certainly have planned a big case in later October.

My mother, my sisters and brother and their families, are arranged for a trip to Hawaii in the end of October. That’s not a coincidence. It is not an appropriate time for a vacation in Hawaii. But it's the time just before November 1st- the due date of property tax. It fits their plot to seize the property in the name of owing a debt when the victims are under arrest in a framed case or being eliminated in a travel incident.

 

[katsung47]

741. Why the gas price jump high (10/15/2012)

On Oct 10, I revealed that the Feds have arranged a Hawaii trip for my family members. That’s a tactic they used to use when they planned a framed case. That night, my wife said she would take a tour to Thailand between Oct.19 to Oct. 25. It was a swift response to my revelation. They are showing off their power that they can order a trip any time they want on anybody.

To coordinate this October framed case, you also saw an unusual sudden rising price of gasoline in California, especially in Bay Area. A gas station owner complained that the gas price going up $1.00 just in five days.

California Refiners Ration Gasoline as Prices Near Record
By Lynn Doan – Friday, Oct 5, 2012

“We’re really sort of shell-shocked,” said Tom Robinson, president of Santa Clara, California-based Robinson Oil Corp., which operates 34 Rotten Robbie convenience stores. “If you’ve been in California long enough, you know how volatile our market can be. But to see prices go up $1 a gallon since Monday -- I’ve never seen that before.”

California Refiners Ration Gasoline Prices Near Record | First Enercast Financial

Calif. gas prices equal all-time high
By GILLIAN FLACCUS | Associated Press, 10/6/2012

LOS ANGELES (AP) — Saturday's price, the highest in the nation, equaled the record average high for California set in June 2008 of $4.61.

Calif. gas prices equal all-time high

Be noticed that the sudden rising gas price started in first days of October. It matches well to the Feds October plot. Why? Because the Feds have collected so many real estate properties in my case in two decades. They want to keep the price good once they finish the case and pass these houses to the ordinary people. The houses mainly are located in San Francisco and San Jose where my family members and I live. The Feds managed to keep the price high there.

But the economy is actually still weak despite the lavish praise of the media. The housing market in nearby area is still low. The average price of house in Sacramento and Stockton is about half to the Bay Area. These cities are about one to two hour drive to San Francisco. To prevent the potential buyer to buy house there, the Feds pushed up the gas price.

 

[katsung47]

742. Help Obama to win the second term (10/24/2012)

The recent Gallup poll shows that Mitt Romney leads over President Barack Obama in president Campaign. That’s just a gimmick to cheat people. The election result is pre-decided. Obama will stay for his second term. It doesn’t relate to any politics. It is for a case of the Feds. They need Obama’s Health Reform that they forced Chief Justice Roberts to change his mind in June to pass the “Health Reform”. (see “ 726. The surprise turnaround of Chief Justice (7/4/2012)&#8221

To keep Obama to stay in his seat, they have to create an economic background that favors him. Two months before voting date, in early September, we saw European bank chief Draghi said the bank would buy the bond with no limit. How could this affect US president election?

Draghi helps out Obama campaign

By Robin Harding in Washington September 6, 2012


Barack Obama’s chances of re-election as US president rose on Thursday and the words that did it were not his but Mario Draghi’s.

Long before Mr Obama stood up to accept the Democratic nomination in Charlotte, North Carolina, the head of the European Central Bank had sketched out a new plan to buy the bonds of troubled eurozone countries.


That will not move the polls; it will not move a single vote. But Mr Draghi has lowered the gravest of risks to Mr Obama: a pre-election meltdown in the eurozone that would have blown up banks, pulverised Wall Street, and routed a fragile US economy back into recession.

If that happened, it would not be Mr Obama’s fault, but he would get the blame. Just as the failure of Lehman Brothers doomed his rival John McCain in 2008, a eurozone implosion would create economic odds too great for Mr Obama to surmount.

Draghi helps out Obama campaign - FT.com

Within days, Federal Reserve Chief Bernanke pushed out another QE which would push up economy temporarily but hurt it in long term with inflation. The Republicans felt it immediately. The timing of issuing QE3 is not a coincidence. It helps Obama.

Fed risks political fallout from QE3

By Robin Harding and James Politi in Washington September 14, 2012

Mitt Romney, the Republican candidate, duly opened fire on Friday after the Fed began an open-ended third round of quantitative easing (QE3), under which it will buy $40bn of mortgage-backed securities a month.

Fed risks political fallout from QE3 - FT.com

QE3 will create another housing bubble.

Marc Faber: Fed's QE forever is ludicrous; no country has become rich from consumption

Source: BI-ME , Author: Constantine Gardner Fri September 14, 2012

"Asset prices will go up and the money will flow to the Mayfair Economy," he said, defining the latter as an "economy of the rich people whose assets prices go up and whose net worth increases" without any trickle down benefit to the real economy.

What you have is a small economy that is booming and the majority of the economy is being damaged by QE, Faber explains.

Faber sees the Fed's monetary policies over the last 15 years as mainly responsible for the various asset bubbles (Nasdaq, real estate etc...) leading to the subprime crisis in 2007. "The money printers and the neo-Keynesians interventionists are responsible for the crisis, reckons Faber, and people should know this."

Dr Bernanke's attempt to boost growth and reduce unemployment will end up, according to Dr. Faber, in a fiscal Grand Canyon with never ending deficits, the majority of the economy being damaged, the man in the street facing higher prices and losing his job.

Marc Faber: Fed's QE forever is ludicrous; no country has become rich from consumption - Business Intelligence Middle East - bi-me.com - News, analysis, reports

Faber sees the Fed's monetary policies over the last 15 years as mainly responsible for the various asset bubbles (Nasdaq, real estate etc...), the Nasdaq bubble is the dot.com bubble, I talked about these two bubbles from #733 to #739. And the Federal Reserve now continues to create the third one. At the purpose to help the Feds to remove the hot potatoes in their hands to the ordinary people.