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The Next Big Financial Collapse Can Happen At Any Time – John Embry
Every day that life goes by and there’s no disruption I consider that a bonus. – John Embry
TND Podcast Spotlight: Shadow of Truth
We are currently sitting on the edge on another housing and commercial real estate market disaster. The financial system was never “fixed” or “reformed.” The banking sins which led up to the big housing bubble crash were merely erased with taxpayer funds and printed money. The laws passed were not designed to protect us from them but to better protect their ability to hide the continuation of the fraudulent banking activities that serve to transfer wealth from the general public to the elitists.
The Fed and U.S. Government have successfully succeeded in reflating the housing bubble. Housing prices have been fueled by low to no down payment Government sponsored mortgages and by the Fed’s near-zero interest rate policy. Go ahead raise rates, Janet, let’s see how quickly you explode the current housing bubble your people have blown.
The financial media heralded the announcement of Wells Fargo’s 3% down payment mortgage program like it was a new way to split to the atom. Lost in the hoopla was the fact that Wells Fargo’s program is just now catching up to the times. Fannie and Freddie have been sponsoring 3% down payment mortgages since early 2015. The Government agencies also signficantly reduced the required monthly “insurance” payment on low down payment mortgages. Same with the FHA, which has been doing 3.5% down mortgages since 2008. Th Government has become the new version of Angelo Mozilo’s Countrywide Mortgage company.
It’s nothing more than a reconfiguration of the exact same types of mortgages and the associated derivatives that took down the financial system in 2008. The “use your house as an ATM” programs have been reinstated. Need to pay for your wife’s full body plastic surgery makeover? Do a “cash out” refi and pay for that plus redo your kitchen and finish out your basesment. Leverage that “home equity” to the max.
After our conversation with John Embry about the silver market, the discussion wandered into the housing and mortgage market on an ad lib basis. Below is the Shadow of Truth’s bonus footage with John Embry about the forthcoming systemic debt collapse led by mortgage and auto leverage.
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About Dave Kranzler:
I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.
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