You know, after thinking about this whole 30 year mortgage thing, I've realized something. It is because of Fannie and Freddie that homes cost so much. They talk about how FnF are helping people getting into homes, but it's quite the opposite.
If Fannie and Freddie didn't exist, there is no 30 year mortgage. Think about that. They exist solely to make the banks money. 30 years of interest on hundreds of thousands of dollars is a LOT of money. You pay for your house twice. If there was no FnF, then homes wouldn't cost so much because only about 1% of the population would be able to buy them at these prices.
You can agrue the same for healthcare. If there was no insurance, then companies wouldn't be able to charge as much as they do for their services. You can get the same or better care in India as we do in the States for 1/10th the cost. Now, you can't get healthcare without insurance and it's a necessary evil, thanks to our masters.
So home prices would NEVER have risen so much if the GSE's didn't exist. They were developed to make slaves of the American people.
NOTHING has risen in price so much as homes and cars, the 2 biggest purchases people could ever make. I should also give honorable mention to college tuition even though it's not something you really "need". However, it's important to note that you have to pay money to get a degree to get a job that you will spend the next 10 years paying for after you get a job from the degree (if you actually get a job pertaining to your degree which many don't). Sickening.
In 1979, my dad bought his home in the Bronx for $85,000. Today, the home is worth $500K+. In 1971, my uncle bought a Mustang with the 429 SCJ for $4,100. (Turns out since it isn't a Mach 1, there were only 16 of those cars made and it's worth about $200K today. It only has 30,000 miles on it. Sweet car) But I digress...Today, a car of that same class would be about $50,000 brand new.
So, basically, the 2 largest purchases we'd ever make have raised in cost anywhere from 5-10x and maybe even more in some cases. We also know that people's salaries have not risen 5-10x in that time. My dad was earning about $30,000 a year in 1979 which was great money back then. He was earning about $40,000 a year when he died in 2011 which is close to poverty level in the Bronx.
I've also noticed something interesting in the past few years: The introduction of the 6 year car loan. Many average cars are now getting close to what home prices were in the 60's-70's. This is all due to the perpetual rise in manufacterer costs due to unions, healthcare benefits, real estate, and advertising.
I make about $45,000 a year. Someone like myself will have to live my life paying loans on homes and cars if I want those things. There is no way to pay that off with my salary and pay all the other daily living expenses.
It's quite interesting when you do some research on the phrase "Life, liberty, and the pursuit of happiness." It was originally, "Life, liberty, and the pursuit of property." What the government has done was eliminate our ability to ever really own anything. Even if we manage to pay off our loans in our lifetime, we are always paying taxes on what we own, so we never really "own" anything. It ALL belongs to the government.
Anyway, what is my point? Bottom line is that one thing has been true for the past century in America, and I could argue, the history of man. Those who are in power want to keep the people dependent on them so they remain in power. The greed of man ensures this. As the Apostle Paul said, "The love of money is the root of all evil." When you medidate on that statement, and start to unravel the spider web of problems in the world, it all goes back to someone's love of money and you BEGIN to realize how profound that statement is.
Therefore, I have NO doubt that Fannie and Freddie will be here to stay. As of now, they are the only entities that can help keep us slaves to our masters. I hope that those of us invested are able to get a chance to see our investments mature and maybe free us from the slavery we have been subject to our entire lives.
GO FNMA!!!!!!!!!!!!!!!!!!
AI
