U.S. Government Paying Homeowners to 'Walk Away'

May.18.09 | About: iShares U.S. (IYR)

Three months after the Obama regime came up with its plan to “rescue” the U.S. housing market, it is doing more to get people out of their homes than to keep them in them.

The much-hyped “mortgage rescue” initiative has postponed foreclosure for only 55,000 U.S. homeowners. It would have to double that number just to qualify as “pathetic”. Additionally, with previous “mortgage rescues”, the vast majority of those “rescued” still lose their homes in less than a year. There is nothing about the current “rescue” which suggests this trend will change.

Meanwhile, with much less hype, the U.S. government has been quietly slipping “distressed” homeowners a cheque for $1000 – just to get them to leave their homes quickly and without vandalizing the properties they once owned (see “Treasury Dept. is giving cash for keys”). The goal here: to make foreclosures less costly and time-consuming for the banksters.

As I have stated repeatedly, the only conclusion to draw from the actions of the first Bush regime, and now the Obama regime is that they have no interest in helping U.S. homeowners. Rather, all indications are that they want as many Americans as possible to lose their homes – allowing title for all these properties to fall into the greedy hands of the banskters.

For those who consider such a suggestion ludicrous, simply read a previous commentary (“The Bankers Manifesto”) - and then let's see if you can still “laugh off” this assertion.

Meanwhile, the U.S. propaganda machine continues with its absurd claims that the U.S. housing market is “stabilizing”. The U.S. government knows this claim is 100% false. Even during a four-month foreclosure moratorium, which covered most of the U.S. market, foreclosures have continued to rise. And with the moratorium now over, another wave of foreclosures is just beginning to flood the market.

However, the data is clear that the worst of the U.S. housing crash has not yet begun (see “U.S. mortgage-crisis to get MUCH worse in 2010-11”). The largest block of mortgage-resets (where the default rates are higher) does not begin until next year.

What kind of liars would write that this market is stabilizing, when all the data clearly refute such a suggestion? What kind of idiots could believe such totally transparent lies?

With the Obama regime “greasing the wheels” of the banksters' foreclosure-machine, these lies will soon no longer deceive even the most-gullible of the sheep. However, as the banksters assert in their “Manifesto”, “people without homes will not quarrel with their leaders”.

The U.S. government has no interest in helping Americans. It serves the interests of the U.S. financial crime syndicate – exclusively. With its actions, it seeks to impoverish Americans, and throw them out of their homes and into the streets. And should these homeless protest, there will soon be plenty of “accommodations for them – in the private prisons springing up all over the U.S. By remarkable coincidence, both Dick Cheney and Alberto Gonzales have picked private prisons as their favorite investments (see “U.S. judges caught locking-up innocent children”).

And why not? With virtually no standards, and no oversight, it's very easy to keep costs down in warehousing these human cattle – while making profits on the stipend the government pays for each resident.

Better still, these prison populations are a great form of slave-labour – again, with no standards for treatment, and no oversight. The infamous “chain gangs” of the U.S. are back, with a vengeance, in the 21st century.

And all these “good things” begin by throwing Americans out of their homes.