Arthur Sido says it ain’t gonna reset itself, y’know.
Something I return to again and again is that most of our fellow Americans, Democrats and Republicans alike, view politics in a deeply skewed manner. Most garden variety liberals think that Big Business is bad and we need more government to restrain it. Most NormieCons think Big Government is bad and we need more free markets to prosper. What neither side gets is that Big Business and Big Government are the same damn thing. Big Government loves Big Business because Big Business enriches politicians. Big Business loves Big Government because the dot gov types help Big Business to be more profitable. The last thing Big Business wants are free markets. They want state controlled markets that give them advantages in return for political donations. At Executive Board meetings for the National Housing Conference, non-profit types and corporate shills sit side by side and figure out ways to loot the American tax payer.
We are told that initiatives like using Freddie and Fannie to “help” low income Americans is a matter of “justice” and “equity”. The article twice mentions the “the racial wealth gap” as if giving blacks mortgages they can’t or won’t repay will make them wealthier. How exactly does it increase wealth to have blacks and mestizos getting mortgages that they end up defaulting on, thus making their poor credit even worse? Encouraging them to be responsible with credit? That would help. This won’t do anything to help them and in most respects will make things worse.
What it will do is vastly improve the profit of the major banks and mortgage lenders who will make shitty loans and then dump them onto Freddie and Fannie, and ultimately the American tax payer. In return, these banks and businesses will shower contributions on the politicians who made this windfall possible. As I pointed out before in Everyone Else Should Pay For My Poor Decision Making!, the top leaders in both parties tend to have a lot of campaign cash coming from the financial services sector. If you think that banks and investment firms are giving Chuck Schumer and Mitch McConnell alike millions in campaign contributions without a firm understanding that no matter which party is in power, the banks are protected, then you are kidding yourself.
You can see the end result of this from where we stand today. It doesn’t take a crystal ball, just a modicum of awareness. Lots and lots of crappy mortgages being issued to people who can’t handle them. Many or most of those will go into default and the tax-payers will be on the hook, which will be wrapped up into more make-believe money. Of course since “low-income” is often code for “not White”, there will be Congressional hearings and legislation to bail out these good folk who got in over their heads through no fault of their own. More money will flow to help keep them in their homes, magical bullshit money printed up out of thin air.
With a finite supply of homes and skyrocketing lumber prices making new home construction very expensive, we will have a bunch of new buyers in the marketplace looking to purchase homes. This increases demand and that will in turn cause prices to rise even faster. Next will come pressure to intervene in the home construction business to encourage faster construction. We already saw that in the quote from the article: “…expanding investment that supports the construction of multifamily rental properties”. “Investment” in this case is a fancy way of saying “tax breaks and government subsidies to build apartments and housing”. Groups like the National Association Of Home Builders will certainly support making “investments” as well as making it easier for people to get mortgages. That is where the real power moves are happening. Biden eating ice cream or empty blustering from politicians on C-SPAN? That is meaningless. Where things are really getting done are behind the scenes with regulators, congressional committee staff and lobbyists jockeying for position at the Fed Gov trough, all trying to stick their snouts in the sweet, sweet magical money flow.
Getting screwed in the deal? Us. Housing prices skyrocketing, inflation spiking. Housing is a huge part of the economy. Not everyone has an iPhone but just about everyone has to have a place to live.
This is all part of the plan. To enact the Great Reset, things have to be a widespread dumpster fire. People living in a decent society aren’t going to live in the pod. What better way to throw a society into chaos than to mess with the housing market that impacts everyone? Not to mention inflation being another tool for the Powers That Be to accelerate the Great Reset, there will be more on that later.
While sane people look at this move, which not only seeks to replicate the disaster of the Great Recession but to double down, and wonder what the hell they are thinking, it is critical to understand that torpedoing the economy is not an unforeseen effect, it is the whole point.
Annnnd bingo. In fact, that’s true of so many things happening to and around us these days it’s hard to keep track of them all. But if you still think these nefarious shitweasels aren’t working a Plan here, you need to think again.