Friday, November 06, 2009

Public takeover of private property

In March I said a marxist revolution is underway. The Federal Reserve's actions over the past year has confirmed this belief. What it is doing is nefarious to say the least.

Under the guise of saving the housing market and providing cheap financing, the Federal Reserve is buying Fannie and Freddie MBS along with other Agency debt. Unfortunately, they are seeing defaults on many of these properties. When these properties default, the title of these properties transfer to the Federal Reserve, a quasi public entity. At this rate, people will continue defaulting on their property more and more of the MBS' and underlying collateral will be held on the Fed's books.

The current policies virtually ensure that more and more people will lose their jobs and property values will eventually crash when the stimulus and cheap credit run out. At that point, the Fed will have owned the entire mortgaged real estate market. The socialists will see this as an opportunity to end the Fed's charter and own the real estate market as is, marking the end to private property. This is the endgame.

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