A quick review: During the housing market ‘boom’ (2000-2007) mortgage originators and mortgage finance companies ‘fed’ voluminous reams of mortgage paper to the Wall Street financial sector — for them to ‘bundle,’ securitize, and peddle to investors who thought they were buying low-risk, income-producing investments (hint: they were not).
They thought they buying AAA-rated securities, and in actuality, much of it ended up being nothing more than junk-grade debt.
When the market began to ‘dim’ slightly in 2007-08, the ‘paper’ didn’t move quite as well, and many of the big players in Wall Street’s financial sector began ‘warehousing’ (or holding ‘in house’) mortgage-backed securities (MBS), along with other ‘hot potato’ derivative instruments.
Then the default wave hit, housing imploded, and major commercial and investment banks quickly became ‘illiquid.’
The Federal Reserve and U.S. Treasury bailed out (as in trillions of dollars in ‘free money’ and credit guarantees) Wall Street’s financial services sector.
The Fed and Treasury did little, if anything, to provide an equal measure of liquidity for main street America. Over 14 million families ended up losing their homes through foreclosure actions from 2008 – 2014.
Home ownership rates plummeted, and now rent costs are soaring.
The Mystery Of The “Missing” Inflation Solved: Record Number Of US Renters Can’t Afford Housing Submitted by Tyler Durden on 06/24/2015 – 15:12 – Charts:
There is a cure for this kind of ’tilted’ logic and asymmetrical responses to financial crises.
The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen The Leviticus 25 Plan 2015 (1003)