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Posted on 08/17/2013 11:52:59 AM PDT by whitedog57
The liabilities for mortgage giants Fannie Mae and Freddie Mac amount to $4.9 trillion, according to economist James Hamilton<. That equals $42,494.15 per household. This is especially troubling since the US homeownership rate is 65% and 60% of home sales are made with all-cash. So, renters really end up subsidizing homeownership AND Fannie Mae and Freddie Mac.
While this is outrageous, the other costs of government spending and promises are even more outrageous.
We know that the employment situation in the US is terrible with 70% of jobs created since January 2009 being low-paying, part-time jobs.
And median household income keeps declining.
20130816_mainstreetmisery
After reading James Hamilton’s horrifying paper on the size of off-balance sheet liabilities for America, I thought I would put together the following table to you could see the household share of government debt, entitlements and The Federal Reserve Balance Sheet.
householdshare
There are 115,310,000 households in America.
Government spending in the U.S. as of Q2 2013 was a little over $5.8 trillion. That equates to $50,328.68 per household.
The median household income was reported in February at $51,404. So, median household income is almost equal to government spending (98%). So, governments spend almost dollar-per-dollar of median household income.
SNAP (food stamps) is given to 20% of American households.
The liabilities for mortgage giants Fannie Mae and Freddie Mac amount to $4.9 trillion, according to economist James Hamilton. That equates to $42,494.15 per household. This is especially troubling since the US homeownership rate is 65% and 60% of home sales are made with all-cash.
Total off balance sheet liabilities (Social Security, Medicare, FDIC, Fannie and Freddie) amount to $70 trillion. The household share of this staggering liability is $607,059.23.
IN ADDITION to off-balance sheet liabilities for the government, they have borrowed $16,738,484,642,517 {(or $16.7 trillion) to date. Household share of Federal government borrowing? $145,160.74!
The Federal Reserve has grown their balance sheet to $3,603,348,000,000 (or $3.6 trillion). Now, while taxpayers are liable for losses on The Fed Balance Sheet, it is doubtful that all $3.6 trillion will be lost. Still, the household share of The Fed’s Balance Sheet is $31,249.22.
Bear in mind that almost 50% of Americans pay no income taxes. You do the math. It is too appalling to think about.
So, if we combine the household’s share of off-balance sheet liabilities and public debt, we get $752,219.97.
In mortgage terms (Debt-to-income or DTI), the household’s DTI is 14.63. Of course, we don’t count the liabilities owed by households as part of a mortgage DTI calculation. Otherwise, very few would ever qualify for a mortgage (when 28% is the max DTI).
Even if we divide the household share by 30 years, the DTI would be 0.49 or 49%. Sorry, too high to qualify! But you owe the government an $800,000 house in exchange for your share of debt and entitlements.
What’s in your safe?
So where did the money go? Who got rich? What politician benefited?
Government spending in the U.S. as of Q2 2013 was a little over $5.8 trillion. That equates to $50,328.68 per household.
I guess it's a good thing the dollar isn't worth much, isn't it?
Look up Franklin Rains.
Jamie Gorelick (Clinton DOJ flunky), Rahm Emanuel (Obama flunky), Franklin Raines (Clinton/Obama flunky), for starters. All mega-millionaires just for working in a government agency.
You forgot Mario Cuomo , who was buying housing through HUD
OFFSHORE WIRE TRANSFER ALERT: Obama says it’s time to ‘turn the page’ on Fannie and Freddie MarketWatch | 7/24/13 | MarketWatch / FR Posted by illiac
Obama's speech on the US economy spelled out the beginning of the end for federally-controlled mortgage buyers Fannie Mae and Freddie Mac. “We’ll work with both parties to turn the page on Fannie and Freddie, and build a housing finance system that’s rock-solid for future generations,” Obama said, according to a copy of his prepared remarks
The House Financial Services Committee approved a bill on Tuesday that would get rid of the firms in five years, to be replaced by a National Mortgage Market Utility to help securitize mortgages.(Excerpt) Read more at blogs.marketwatch.com
ADDENDUM---what Obama left out of his remarks Wall Street Journal report on page A15---article entitled “Treasury’s Fannie Mae Heist“.
WSJ: The Federal government is seizing the substantial profits of the government-chartered mortgage firms, Fannie Mae and Freddie Mac, taking for itself the property and potential gains of private investors the government induced to help prop up these companies. This conduct is intolerable.” A scathing article follows--a must read.
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ANOTHER POSSIBILITY......L/E must be getting very close to the mtge fraudsters in the Congressional Hispanic Caucus (O's gotta show "he cares" ---b/c he's paranoid about getting latino votes). Read on.
SUB-PRIME MORTGAGE SCAMS--MASSIVE MORTGAGE FRAUD ON CAPITOL HILL:
The Congressional Hispanic Institute, Inc, is an entity organized by Cong Joe Baca (D-Cali) in his capacity as head of the Congressional Hispanic Caucus.
Cong Baca created "HOGAR" (Spanish for home) in 2003 to work with the mortgage industry, F/M, lenders, banks and latino community groups to increase mortgage lending to what savvy observers consider to be unqualified Latinos.
"HOGAR" colluded w/ Cong Baca in what was to become a massive bilking of taxpayers. Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.
HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership."
HOGAR and Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.
Predictably, HOGAR colluded w/ co-conspirators which included:
(a) shaky mortgage companies that ran into big trouble;
(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;
(c) Countrywide Financial Corp., sold to Bank of America Corp;
(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,
(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.
HOGAR's ties to the subprime mortgage industry were substantial. Bribery and self-dealing were rampant:
<><> Companies that donated $150,000 to Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump lending.
<><> Bribery and extortion in the form of $100,000 annual donations to Cong Baca, for which HOGAR provided phony news releases from Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,
<><> The most shocking example of bribery well-substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts.
The "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.
<><> HOGAR conned lenders into even more lenient down-payment and underwriting standards.
<><> As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated.
The mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.
The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage brokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds.
The mortgage Dreamers used multiple phony identities, fraudulent Social Security numbers, purchased from identity forgers in order to obtain govt-subsidized benefits.
L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever-higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.
BACKGROUND A Wall Street Journal investigative report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.
This was not simply the mortgage market at work. It was fueled by avarice, greed, and Congressional enabling fraudulent practices. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained subprime mortgages for prime properties---soaring to 169%.
(Research provided by Wall Street Journal. Some material excerpted from the NY Times).
The new plan is to force private banks to do exactly what Fannie and Freddie were doing
Yeah-—that’s the twisted deranged progressive mind at work.
As a community organizer, Obama sued banks b/c they would not lend to the underclass. People on welfare, food stamps, SSI, were now considered to have “income.”
Now Obama is suing banks for lending to these people now overburdened with debt—who obviously cannot pay it back.
Lots of investors buying houses here in Houston. There were two houses side by side with “For Sale” signs in front of them about a month ago. Then one had a “Sold” sign in front. Now that one has a “For Lease” sign. That makes me nervous ‘cause I wonder “who” these investors are. Are they actually the feds buying Section 8 housing to make my neighborhood more diversified?
Yep. I heard the OWS people sued Oakland for not stopping themselves from rioting and won a nice settlement
insanity
There are pensions and many other liabilities omitted from the article. The federal fiscal gap (difference between projected spending and revenue) was about $222 trillion a little over a year ago. Beyond that, there are also state and local liabilities.
Give me the addresses and I’ll track down the answer for you.
FNMA and FHLMC did not jump into that briar patch on their own initiatives.
You can also blame the same people for forcing what used to be prudent lenders into playing along via the Community Reinvestment Act.
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