Demand Biblical Worship
Meet the New Americans
As I suspected, a large percentage of the home foreclosures are from illegal immigrants (read:Mexicans):
Immigrants are emerging as among the first victims of a growing wave of home foreclosures in the Washington area as mortgage lending problems multiply locally and across the country.Nationally, 375,000 high-interest-rate loans were made to Hispanics in 2005, and nearly 73,000 of them are likely to go into foreclosure, said Aracely Panameo, director of Latino affairs for the Center for Responsible Lending. About 1.1 million homes in the United States are expected to go into foreclosure in the next six years, and many native-born Americans are likely to be stuck with burdensome loans. But immigrants are getting hit first in part because their incomes tend to be lower and many have lost construction jobs.
Homeownership rates among immigrants surged in the first half of the decade, making their prosperity an economic success story. Now it is becoming apparent that many people managed to buy homes in an inflated real estate market by turning to unusual new mortgages only now receiving scrutiny from regulators and legislators. Many of these loans start with attractive low “teaser” rates but feature payments that can suddenly increase.
Unfamiliar with the U.S. mortgage market, unable to speak or read English well and vulnerable to the blandishments of real estate professionals who told them property values always rise, many immigrants are struggling to deal with high mortgage payments as their homes sag in value, making it harder to escape the loans by selling.
In other words, the Mexicans were unwilling or unable to do the requisite thinking required to avoid the inevitable financial fallout from the recent "irrational exuberance" in the housing market. They couldn't learn English, they couldn't read the fine print, they occupy low-skill jobs in which wages keep going down. But the thinkerati in DC tell us that this replacement population will be able to maintain our level of civilization. Naturally, they all want hand outs from taxpayers - the white man.
A commenter on Michelle Malkin's blog provides an eyewitness account of the behavior of these upstanding citizens.I have lived in Fairfax co. most of my life and have been following the events in nearby Prince William co. with regards to the exodus of illeagals. Many of the houses that are now vacant were inhabited by large groups of adult hispanic men not families. Many of them would sit outside drinking beer all evening listening to loud music and peeing in the bushes. The neighbors complaints fell on deaf ears until Pr. William co got tough. I have looked at some of the foreclosed properties in hopes of buying one for an investment, as my home is paid for.
Many of these houses have been destroyed by the former occupants. Holes kicked in the walls, doors pulled off hinges, copper plumbing and wiring ripped out.
People who destroy their homes upon eviction should be put in jail, Not rewarded with a Gov. hand out!!
Meanwhile, we continue to move out where they move in. I wonder what will happen when we're out of places to move? The polarization function provides a clue as the meritocracy continues to disappear.
As more and more Mexicans who are held to no standards enter our society, we will move further to the right on the polarization curve. When the different subcultures in the US polarize enough, life may get a lot more interesting for us all.
Update on Monday, May 12, 2008 at 03:38PM by
PRCalDude
PRCalDude
Your new home.
9 Comments
Reader Comments (9)
PRCalDude, I'm so glad to see someone else speaking out against this subprime bailout. I've heard that only about 10% of the beneficiaries would be whites. Whites, even poor whites, are rarely so irresponsible as to be taking out loans such as these. There should be an overwhelming outcry among whites, except that too few understand what is going on.
Also, the bailout is going to prop up prices at levels where responsible couples who have been saving up to buy a house the right way, won't be able to afford it. Instead of a Mexican being forced to sell his house cheap at its actual value, he gets to keep living in it indefinitely.
Re "your new home": I think the third-worlders would follow us to the ends of the earth. If we do not fight until we have already conceded most of our territory to our enemies, we'll surely be wiped out. Our children will rightly view us as cowards.
I've been wondering if we'd ever see the full set of demographics of those being foreclosed on. aside from immigrants, don't forget the whole "Ownership Society" push and specifically "blach home ownership". Which you'll notice isn't an issue for the Dems anymore since Bush made it happen. and we may be paying the consequences.
I'd definitely like to see a link on that. That's information I could use.
There's plenty of whites involved in this - both in getting bad loans and loaning the money to the Mexicans. Who do you think was giving the Mexicans money but unscrupulous white people? Who hires them?
I'm not so sure. They're welcome to follow if they want. The weather has a way of weeding out those who can't play nice, unlike in the sun belt. I'd be much less inclined to go shovel out my neighbor if I new his kid was some Mexican gangster.
It would be interesting. Of course, they're not honest about the color of crime ever. I remember the "Ownership Society" push. It certainly has a lot to do with this. Of course, no similar push was made to get Americans or Mexicans to SAVE THEIR MONEY to become worthy of such ownership. We all spend more than we have, rather than save it. Now we're making those like myself and several other people I know look like fools for saving our money.
When the people figure out they can vote themselves more money, the Republic is over. The next amnesty will be all she wrote, so plan ahead.
The bailout was 'necessary' to save all the banks from having to mark their exotic derivatives to market value. There are $500-600 TTrillion worth of these things. They are highly leveraged and when they start down they take a lot with them. That's why the Fed is taking bogus paper (a concept not used since the '30's but w/in the Reserves power) at face value in exchange for operating capital for the banks. Approx. 250 banks/lending institutions have folded w/more to come. We (US) sold this toxic brew to the world and it's showing up everywhere. JP Morgan stuck its finger in the dike (w/the Fed's blessing) for the moment. The other shoe hasn't dropped yet. Everything is wired together and is in the process of deflating.
I'm not disagreeing. Just repeating what I've read. I don't think anyone really has a clue what would have happened had we not started bailing out the banks.
Where'd you read that?
The official NPR line is that all of the people in the third world who started to become rich from globalization needed somewhere to invest their money. The US housing market was hot, so the financial weenies figured out how to package the mortgages together in a product you can invest in. Well, there were only a finite number of people with mortgages because of the lending standards, so in order to make more loans, the standards needed to be lowered. This repeated until the inevitable crash.
I don't know if things are deflating right now. Inflation is up around 5%. Food is up 300%, and I can't get a straight answer as to why.
I'm hoping my memory is correct on the above.
I should have been more clear with my deflating comment. The financials are deflating. Everything else except housing is up due to the declining $$. Oil is denominated in $$. Inflation is closer to 12%, but they are cooking the books (there is an official rationale for the cooking.) Food is up due to weather, fuel prices, China and India living/eating better, and my favorite, ethanol. Australia lost 98% of its rice crop. The US planting season is late due to weather. The commodities are also driven up by money going into the next hot thing (since housing fell.)
""The official NPR line is that all of the people in the third world who started to become rich from globalization needed somewhere to invest their money.""
This is true. Our financial whizz-bullets invented the CDO's (consolidated debt obligations) and SIV's (structured investement vehicles) to package the sub-prime mortgages into 'products' which the world bought. These have an assigned value. When they are sold, the value has to be declared to the current market evaluation. This is why the banks are pushing this to the Fed and the Fed is taking them at the assigned value. If they unwrap the package the smoke and mirrors will be evident and it will all crash. Some retirement plans (teachers, firemen) call for AAA rated investments only. If the rating drops they must be sold no questions asked, regardless of price received. Several of these are in trouble and could be sold for pennies on the dollar.
Most of my financial stuff I get from a site called "Minyanville." It's a whimsically written financial page.
I cut/pasted this from their archive.
The level of debt and leverage caused by derivatives is staggering and unprecedented and the unwinding of it will produce unprecedented upheaval. As Mr. P so lucidly and ably pointed out, "Debt levels in the U.S. reached six times their usual amount relative to economic production. As the credit began to deflate, liquidity driving asset prices quickly dried up."
Easy credit drove up asset prices to unsustainable levels - the implications of that are now starting to be felt - debt levels are massive and no longer serviceable, the inflated assets purchased with that easy credit are themselves now losing value and a vicious cycle of deflation is taking hold and no government policy is going to be able to stop market forces that powerful. There are no easy fixes, no simple solutions - there is only a steadily deteriorating loss of trust in the honesty & competency of the largest financial institutions, ratings agencies and the markets in general which government (which has its own credibility issues) can't restore.
C/P from the UK TeleGraph. Sorry if I'm boring.
The California city of Vallejo (117,000 inhabitants) has just made history by opting for Chapter 9 bankruptcy, the result of tax erosion from a 26pc fall in local house prices. Half Moon Bay may be next.
"This is the tip of the iceberg: everybody is going to line up for Chapter 9 in California," said John Moorlach, Orange County board chief.
US consumers are juggling plastic to put off their day of reckoning. The Fed survey said credit card debt had jumped 6.7pc in the first quarter to $957bn, or $6,000 per working American, despite usury rates near 20pc.
"My guess is that many Americans continue to run up massive credit card debt because they have little intention of paying it off," said Peter Schiff at Euro Pacific Capital. Quite.
Thankfully, the Fed's monetary blitz has averted a depression. Emergency lending under the "unusual and exigent circumstances" clause of the Fed Act - the nuclear Article 13 (3), unused since the 1930s - has put a floor under the banking system.
There will be no "reset Armaggedon" as rates vault on honey-trap mortgages. Drastic Fed cuts - to 2pc from 5.25pc in September - have conjured away that disaster, at least.
One dreads to think what would have happened if Fed liquidationists (Plosser, Hoenig, Fisher) had prevailed, as they did in 1930 - and still do in Euroland, where Germany's Axel Weber holds sway, and nobody of sense dares lead a mutiny.
Despite the rescue, US house prices are likely to fall 25pc from peak to trough (Lehman Brothers, Goldman Sachs). We are barely half done, yet 10m-12m households are in negative equity already.
The bears at Société Générale are going into Siberian hibernation, issuing an "Ice Age" alert. They have slashed exposure to global equities to a minimum 30pc for the first time ever.
Their weighting of super-safe "AAA" government bonds has been raised to a maximum 50pc. This is a bet on gruelling "Japanese" deflation. The bank expects equities to fall by 50pc to 75pc.
"Nowhere and nothing will be immune. We are on the cusp of an equity meltdown that will slash and shred portfolios," said Albert Edward, SG's global strategist.
"We see a global recession unfolding. Liquidity will drain away and crush the twin emerging market and commodity bubbles. The recent hope that 'the worst might be over' is truly staggering. Profits are disintegrating," he said.
Today's "bear rally" may live on into June. Don't count on it. Global bourses are no longer rising hand-in-hand with oil in exuberant celebration of liquidity relief (US, UK, and Canadian rate cuts).
Crude ceased to be a friend of equities when it reached around $110 a barrel. At last week's close of $126, it became an outright threat. The Bush rescue package - $800 in rebate cheques per household - has been rendered null and void by the latest spike. The average US home is now spending over 8pc of income on energy or fuel.
This is becoming a manufactured recession because our leadership is scared of it becoming a global depression.
Major global economic upheaval generally precedes some type of major military conflict. We have plenty of tinder and spark right now in the Middle Easte to ignite a new major military actions between the larger more powerful nations.
Muslim aggression right now is striving to force a new world war, and the superpowers are striving diligently not to be goaded into knocking heads. But as long as the economies of the US, Russia, and China remain stable the Islam vs. US conflict in Iraq remains a sideshow.
The problem is that US tax payers are being asked to shoulder the burden of this new financial crisis affecting the global market place. Placing this bailout squarely on the shoulders of the average American tax payer is just not a sustainable solution for the long term.
The average US taxpayer can not absorb this manufactured recession in the face of a war, increasing in taxes, increase fuel/living expenses, increasing demand on social programs by illegals who do not themselves contribute to the tax base.
We can not just stop fighting Muslim aggression, that just makes it easier for them to kill us. But we can stop trying to solve all the world's economic problems solely on the weakening shoulders of US taxpayers.