If anyone has been through the mortgage process lately you know exactly what I mean.
I love flow charts, so I am going to try to create a flow chart that follows what happens after you sign those documents. Feel free to comment as you see fit.
Step 1: An honest hardworking American chasing the American dream finds the house of his dreams and is run through an inquisition to prove his worthiness.
Step2: Yea, your approved. Sign right here. You occupy your home and take possession of a 30 year mortgage.
Step 3: Your bank takes your signature to the Federal Reserve, who promptly prints money out of thin air in the amount of the entire loan and gives this new money to the bank to be used as capital to create more loans.
step 4: Your bank then sells the interest payments part of your contract to a mortgage consolidate company like Fannie Mae or Freddie Mac.
step 5: Fan.Fred buy thousands of these mortgage contracts and piles them into multibillion dollar funds. (Now remember there is no money in this pile, only the potential money of your interest payments.)
Step 6: Fan.Fred prints and sells capital bonds to foreign investors. These are basically borrowing money, at interest, from China, Japan, Sadi Arabia and others using your signature as collateral.
step 7: As you pay your interest payments, fan.fred will have the money to buy back the bonds, right??
step 8: banking industry was deregulated in the 1980s allowing very creative ways to collect promissory signatures from US citizens. These creative loans were doomed to fail. Now that they are failing fan.fred are not collecting enough from you to buy back the bonds, so international investors become anxious.
step 9: The US government (with your money) steps in to secure these promises to foreign investors. So foreign banks that bought risky bonds from a private bank, now are secure in their profits.
step 10: Everybody wins, the banks got the cash up front from selling your signature to the federal reserve, then more cash when they sold the mortgage to fan.fred. Fan.fred makes obscene profits when they sell the bonds, and make more money when you pay your interest payments. The foreign banks make money on the interest from the now gaurenteed bonds they purchased. Oh, what about you? Well, you get to live in your house as long as you pay your mortgage payments plus the property taxes levied against you for assuming that you could live the American dream plus the additional taxes now needed to give to the foreign banks.
Don’t waste your vote on either of the banker backed republicrats. Vote 3rd party!