The New Plantation

I read recently of a plan by Fannie Mae, the quasi private-federal mortgage conglomeration that owns and guarantees more mortgages than anyone else to start a new program to help get the housing industry moving.

This plan is not in any way directed at helping the general population but is another machination of huge capital cronyism and a severe threat to what we generally consider our nation to be.

Here is the simple idea. Fannie Mae has hundreds of thousands of homes sitting around vacant and has many hundreds of thousands more coming into foreclosure in the next few years. These homes are not selling. The solution? Give them to nonprofits? Sell them to low income people with zero percent interest loans? Prosecute bankers and return the properties to the original owners with zero percent loans as compensation? Just cut the price in half and sell only to qualified middle income households?

No. The new idea is to bundle the homes. Sort of like this. Bundle a thousand homes and sell them to a large investment group which will then fix them up and rent them to people.

So we have happening what I talked about years ago and folks looked at me like I was insane. the banks are so huge, have so much wealth, that dealing with citizens and homeowners is just a big waste of their time and resources. A few thousand dollar home loan fee is not worth the effort, your paltry 5000-10,000 dollars of interest each year is just chump change. The big boys want to deal in chunks of hundreds or thousands of houses. In other world we are moving quickly now towards feudalism, the small person will not be able to own property because the banks will not offer such services such as a loan to anyone seeking less than some amount inaccesable to the average person. So it will be legal and it will be rational and of course it will make economic sense. Banks just cannot make a profit on single household home ownership, it is the invisible hand of the market.

I see the coming new system of banks repossessing and bundling large numbers of homes and thus these become plantations, the bank has one person, one bill, one loan, one account where it used to have thousands. The over seer, manages the properties, and the slaves, oops I mean citizens occupy the houses. Imagine the upside profit potential as there are perhaps 100 million homes to repossess bundle up and turn into profit making engines.

If the liberal market neo-conservatives can completely disrupt the american economy and keep driving incomes down it will create an on going transfer of real estate, the single residence and small rental property owner real estate to forclosure, bundling and transfer to the "Investment Portfolios" of the money managers.

Simple, elegant, legal, and of course it only makes sense. Believe in the market my freinds it shall set you free.