Going Under Downunder

Banks and Real Estate Set To Collapse

I remember television news showing several home auctions 12 months ago around inner Sydney that featured one working couple overjoyed at a property auction result in Newtown. They had accepted the knock down for an 80 years old mortar leaking matchbox cottage for $850,000, followed by another working couple taking possession of a Balmain shack for $1.3 million.

As the USA property markets collapse we are following right behind with over ridiculous inflated prices generated by Real Estate companies and self proclaimed investment gurus who make credibility of Used Car Salesmen shift up 50 points.

Main stream media consult the Real Estate Institute on market movements to which they are yet to use terms of inflated, over priced, market collapse. It is always a positive proclamation as the brick walls like Jericho are falling around them.

Guestimations of 750,000 Australian mortgages are in trouble, 300,000 of those predicted to go under within weeks, that is around one in five household mortgagees will lose their homes and other four million mortgage holders also are at risk.

Blame has been levelled by 75% of mortgaged home purchasers at interest rate rises, not a whisper of over commitment to service their loans in a market place that has for two years maintained a shaky low level of interest waiting to explode as it has with further devaluation of property to come as families are evicted by banks AGAIN.
Let us look at “Bank Bulldust” from our Commonwealth Bank CEO Ralph Norris set comfortable with is $15 million a year salary, recently kindled a share market rally, then addressing a Macquarie Capital Conference quoting, “His bank had no current plans to raise additional Capital”.

That is an outright blatant lie.

On May 8th 2008, as a damage control panic, the Commonwealth Bank of Australia announced it would sell $15.6 Billion of their now worthless Residential Mortgage-Backed Securities to the Reserve Bank of Australia to raise capital after the RBA, already injecting $1.5 Billion into other banks bailing out of RMBS to stave off an inevitable collapse of Australian Banking.

We have not touched on our international debt of $700 BILLION poised on world foreclosure hit lists.

Further worry is from the International Monetary Fund created over 60 years ago with a mission to foster global financial stability, have approved the sale of 403.3 tonnes of IMF gold reserves, in a financial overhaul which is hoped to boost its coffers.

Governors from 176 of the Fund’s 185 member countries cast votes to sell the gold, in order to create an endowment to helps provide a steadier source of income to the international organisation.

The new income and expenditure framework is expected to cover a 400 million-dollar shortfall projected in the medium term.

An IMF austerity program, announced April 7th, also calls for a 13.5 percent cutback in IMF spending over the next three years.

The housing market is loaded with scam merchants, suspect agents, and Bulldust Bankers, who never loose money on any deal, always loading prices for their commissions. Banks hold the crown to money manipulation by not producing any cash for loans – it is just multiple book entries that mortgagees payback real cash for into the banks coffers.

A Bank with $10 million dollars to lend legally can hold mortgages on that capital to the tune of $100 million, and charge interest, setup fees, etc. Now panic has set in as Banks scramble sell to the Reserve Bank your mortgage to cash up their phantom loans and that cash-up is from the peoples taxpayer money reserves.

History repeats itself with the same signs, how come the Banks miss it every time?

So the $15m, salary, $2000 suits, million dollar mansions, and $100,000 vehicles have not produced any astute business ability, then with a compulsory taxpayer funded RBA bail out always there who cares, hell there is bugger-all left to sell of the farm thanks to our government – so what’s next?.

The Home Loan Myth

Apart from Real Estate Agent commissions, let us not forget the Lawyers gravy train of around $8 – $10,000 in fees requiring only junior office girls to visit the lands department, title searches, etc, submit the printed government forms while waiting in lines, collect the deeds and paperwork returning to the office – ALL DONE.

Some law firms distance conveyance from solicitors to such a degree the only documentation of your property purchase they review is authorisings is your account, the work is undertaken by office staff.

Never using Real Estate Agents or Lawyers, I have purchase and sold many properties for myself and children by sitting in line, along with the solicitor’s office girls, paying the government fees, then having plenty of change left from $1,000.

Suggest doing this by yourself to these legal and estate agents is like holding a “red flag to a bull”.

You will attract a plethora of excuses and pitfalls and fairytales to protect their cash cows which is a smoke screen. All forms and relevant paperwork is available from internet downloads, you will need a sandwich and drink while you sit in the lines, but not Agents or Lawyers.

Excitement of owning your own home is 30 years away from the purchase date remember over which you will travel mine field of mortgage terminations tactics and tricks from banks you will need to negotiate.

Now raring its head from your caring Bankers with property prices falling like 10 pins, is to call in loans if the home you are purchasing falls below your mortgage valuation that reduces equity of that mortgage. And like dominos home values are tumbling with no sign of stopping yet, although the mining boom is propping up WA and Queensland over inflated housing markets at the moment.

Remember hearing “Property Prices Will Never Fall” – “Invest in Bricks and Mortar”, well it is all around our ears, the great Aussie dreams being reclaimed in the hundreds daily by greed driven banks and financial institutions as the eviction pile of families grows between sunrises.

Adding insult to injury, these bludging banks hound mortgagees by phone and mail, relentlessly, never to offer help or alternatives to service the loan, just repossession at any cost.

On this loan of phantom Bank money leaves the mortgagee owing all outstanding debt for the property that maybe sold under a “Short Hammer Auction” by whom? and purchased by Whom?- the mortgagee can only weep and watch as a collapsed market price will be accepted by the bank to clear the paperwork loan.

Let us not forget the rental property jackals charging exorbitant rents for hovels which is the only alternative these evicted families have after all their possessions have been taken and sold by the Sheriff under court orders. These last family pennies going to the caring banks and shareholders, the bottom line for the family – “Bankruptcy” far from the great Australian dream.

Most gallop into home loans with never a concern to fluctuating interest, partner sickness, babies, unemployment, etc, all having drastic implications on greed driven home loans. it is the end result of the house at any cost that they cannot wait to sign for which now is has turned to a financial death sentence.

Truly we are the lucky country – mining boom exports through the ceiling, our dictatorial government boasts billion of surplus in the budget, while families are being put on the streets because they have not set in place Home Owners and Bank Protection legislation.

Another glaring anomaly is our Aged Pensioners who built this nation receiving $270.00 per week out of the government pension fund set up in the 1950’s – or has government squandered those funds hosting Billions hidden behind the wall of consolidated revenue by PM Malcolm Fraser and his treasurer at the time Philip Lynch? – more on that one soon

Mr Rudd, your relief to third world poverty needs to start right here in our government maintained Australian third world.

Mr Rudd, why is this wealthy nation being plundered by international money mongers and corporation all sanctioned by government who under constitution are mandated to look after the people?

Mr Rudd, why not uncap a few of our sealed oil wells for the people who own this resource in this country like the Venezuela government has done for their people who today pay 18c a litre for petrol?

Australian that third world, become a leader, remove the established bureaucratic control that none of your predecessors Prime Ministers have ever done, and look after the people as our constitution demands of government not your corporate buddies and Banks.

Australia being the worlds most over taxed nation extracting $BILLIONS of taxpayer dollars to maintain this millstone of duplicated bureaucracies and departments, billions of taxpayer dollars funding projects, academics, and many hidden agendas, it is time for change back to government working for the people rather than against the people we have been experienced over the past decades.

Daily we see people awakening to see they are being used as political puppets to prop up the parties

How much long do we have to tolerate this pathetic entrenched apathy – consider thisTODAY just before your elected governments sell the last of the national farm assets.

To read about how the bank create money and mortgages in detail visit our library archives section on banking.