The Coming Middle-Class Anarchy

[Luke]

The Coming Middle-Class Anarchy by Gonzalo Lira
(http://gonzalolira.blogspot.com/2010...s-anarchy.html)

True story: A retired couple I know, Brian and Ilsa, own a home in the Southwest. It’s a pretty house, right on the manicured golf course of their gated community (they’re crazy about golf).

The only problem is, they bought the house near the top of the market in 2005, and now find themselves underwater.

When HAMP—the Home Affordable Modification Program—was unveiled, they applied, because they qualified: Every single one of the conditions applied to them, so there was no question that they would be approved—at least in theory.
[...]
However, three months later, out of the blue, they got a letter from their bank, Wells Fargo: It said that, after further review, Brian and Ilsa had in fact not qualified for HAMP. Therefore, their mortgage would go back to the old rate. Not only that, they now owed the difference for the three months when they had paid the lowered mortgage—and to add insult to injury, they were assessed a “penalty for non-payment”.

TV has given us the illusion that anarchy is people rioting in the streets, smashing car windows and looting every store in sight. But there’s also the polite, quiet, far deadlier anarchy of the core citizenry—the upright citizenry—throwing in the towel and deciding it’s just not worth it anymore.

As of February, 2010, of the over one million homeowners’ mortgages under HAMP auspices, 83% were “trial mods”. One would assume that those 850,000 homeowners would also be assessed an $84 penalty for non-payment.

$84 times over 850,000? You do the math.

Scam Scam Scam .. and people that are backbone of the system realizing that they are daily .... lets say sexualy abused ...
Without middle class paying taxes, who will feed the banksters?

Going Galt .. It so resembles "Atlas Shrugged"!

[sjkted]

Yes, it does. In light of what is happening in the economic system, I have a new interpretation for going Galt. Atlas wasn't the people at the top, the elite as they are portrayed in the book. Those people are the parasites. Atlas is the single mother who works to support her children, the small business owners, and everyone else who works in a productive (not parasitic) capacity and decides they are not valued enough by the system and finds a way to leave.

--sjkted

[Luke]

Hey Skjted, just remember Dagny's visit to Gulch: what people there were- precisely what you tell.
Even in the "outside" world, even if they were industrialist, they were not the top portrayed in media, like Kip Chalmers or Wesley Mouch or Dr.Steadler or Mr. Thompson or Orren Boyle .. Who knew about that it is Dagny that kept TT working not James Taggart. Perceived Elite and real elite are two completly different things.
Also note people like Quentin Daniels or Owen Kellogg - known to very few people but crucial for those who know how things work.

But again - you are 100% right in this:

Posted by sjkted
Atlas is the single mother who works to support her children, the small business owners, and everyone else who works in a productive (not parasitic) capacity and decides they are not valued enough by the system and finds a way to leave.

[Lost Soul]

The whole premise of the "tea party" movement is the middle class which is usually dormant standing up against government. The anger and frustration is swelling as these people are not your normal protesters (demonstrators). The media has led most people to think it's a racist movement against minorities. Typical disinformation from the elite ran media.

[Luke]

Problem is, there are forces that seek to use "Tea party" to promote warmongering , hatred and "Caribou Barbie".. and there are folks who channel their well deserved anger into that trap. This article by Lew Rockwell explains the problem.

[frank samuel]

Waking up from the so called middle class American dream is now becoming more of a norm. Here's an example of a typical house buying rip off here in PR, if you buy a house on a suburban community you can pay an average of 300K plus interest which can amount to double or triple the price of the original price tag for the house with practically no land, you can get a loan faster than you can blink your eyes for this type of house. Now if you decide to be smart buy a piece of land and built your own house it will be 50 % cheaper or more yet the govt . will make it almost impossible to acquire the construction permits. Those choosing to build their own home will have to practically violate the law in order not to fall into the typical suburban house buying trap.

If most people could do it over here in PR they would choose the later even if it meant violating the existing laws. I'm glad to report that most of my friends who choose to buy land then build their house paid off their houses in less than 10 years .

Many many blessings to all.

[Fredkc]

Ever wonder why they want 10% down?

Beyond the obvious desires to see that the buyer has a vested interest, I mean. After all, the ability to pay, is a measure of the buyer's ability to get on, and stay on a paying treadmill. This is a different measuring stick, really.

But look at the ground rules of "Fractional Reserve Banking" (FRB), and something else becomes clear. The current ratios for FRB allow a bank to declare assets at a ration of 9:1 against deposits. "Huh?"

That's right. When you deposit $100 in a bank, they can use that to write loans, or "pretend to have" $1,000; your $100 + $900 they "make up". What this means is, that when banks talk about being worried about "their investment" in your home, it is a complete fantasy.

F'rinstance:
Lets say you want to make my math easy, and your going to buy a $100,000 home.
The bank requires you to put up a $10,000 down payment.
Now, the bank takes that "deposit receipt" to the Federal Reserve, and they are allowed to "pretend" they have that plus another $90,000 !
So now the bank buys the $100,000 house outright.
They get the deed.
You get a "note" to repay the full price to the bank, with interest!

Take the blinders off for a minute, and lemme sum up:
The bank gets the house for free! (zero dollars invested)
On a 30-yr fixed loan, you will pay them about $280,000 for that house.
If you default, at anytime, the bank gets the house, at current market value (again) for free!
You get Zipadeedoodaa!

You are risking, at any given time, your entire down payment, and every dime you have paid in, so far!
They have not risked one single dime, as they got the deed to the place for free.

Of course the laws are written to make building your own difficult, Frank.
It undermines the bank's whole scheme.

All part of the illusion people have been sold, about how "High finance" is so difficult to understand, and that it is best left to people who understand it. Plain fact is, people know a swindle when they see one, as long as it's "S'plained to 'em" in plain English.

Fred

[Ba-ba-Ra]

Posted by Fredkc (here)
Ever wonder why they want 10% down?

Beyond the obvious desires to see that the buyer has a vested interest, I mean. After all, the ability to pay, is a measure of the buyer's ability to get on, and stay on a paying treadmill. This is a different measuring stick, really.

Of course the laws are written to make building your own difficult, Frank.
It undermines the bank's whole scheme.

All part of the illusion people have been sold, about how "High finance" is so difficult to understand, and that it is best left to people who understand it. Plain fact is, people know a swindle when they see one, as long as it's "S'plained to 'em" in plain English.

Fred

You've hit the nail on the head. Up in El Dorado County (N. Calif) the fees to build your own home are now running around $50,000 just for your initial permits. Not to mention it sometimes takes as long as 2-years to get it all through the building dept.

Much different story for companies that build Tract Housing! And the bigger the tract and company the faster the process and smaller the fees.
Welcome to America - the land of the free???????

[Lost Soul]

I read that Lew Rockwell article and one trouble is that he seems to think the Tea Party is a cohesive organization instead of a loosely gathered mob. For instance, he says that the Tea Party favors national ID and other draconian measures. I strongly doubt that and don't think they're organized to the point where they can be assemble a national strategy to challenge either party for power. Rather, I see elements of them being drained off by the Republicans (while other parts are demonized as white racists). For a better assessment on them and what is going on, listen to apolitical trends forecaster Gerald Celente at this link: Here

[conk]

The Tea Party has been abducted in large part by Karl Rove!

[Lost Soul]

Posted by conk (here)
The Tea Party has been abducted in large part by Karl Rove!

Sad, but I see that happening too. The Tea Party will be just another stooge for Soros/IMF/WB/etc.

[Ross]

But look at the ground rules of "Fractional Reserve Banking" (FRB), and something else becomes clear. The current ratios for FRB allow a bank to declare assets at a ration of 9:1 against deposits. "Huh?"

Howdy all.

Fred, you have summed it up exactly how it is...tho that ratio 9:1 is typical but in some cases it has been as high as 30:1.

Yes, they basically lend you non-existent monies under the proviso that you, the borrower, will fulfill your obligations to re-pay the loan. If you default you loose the lot and the lender ends up with 'real' value in the form of 'bricks n morter' not really what they want but its a sure bet either way.

As a mortgage holder, in two countires over the last years, on all my mortgage documents, buried in amongst pages of legal jargon, written in fine print states: At any time for any reason, at the banks discretion, we the lender, can call in the loan at any time.

Personally, I had a gutsful of the mortgage farce, I sold my last property, payed em back my loan, grab what was left and am now renting, I feel free-er than I have in years and see all around me the pressures that many are going through with their 'dream' of house ownership. In the future, I most probably will purchase a mobile setup of sorts...

In my view, there is only one UM...and thats fark UM.

Regards

Ross

[kcbc2010]

A lot of Republicans support the Tea party. However, a lot of Tea Party people don't support the Party. That said, a lot of Tea Party activists have gotten involved in the Republican Party, which has been challenging to the Party Structure as they have gotten really comfortable w/the "way things normally go". They aren't used to challenges and floor fights at conventions. The Tea Party leadership at the local level tries to keep their little organization "pure" (as in "not a Republican" affiliate). I see a lot of elites in the Republican party - either trying to figure out what to do with "these people" or trying to co-opt them.

A lot of "respectable Republicans" are really turned off by a lot of the rhetoric and really want nothing to do with the Tea Party. The major reasons why the Tea Party is supporting Republican candidates this cycle is because they hate "Obama-Care" and the "bail-outs" and the fact the economy is not improving.

Most of the folks in the Tea Party aren't Party loyal - and I don't think that the Party elites have caught on to that yet. They are invest their loyalty in individual people "who are just like them" and when they get "betrayed", they go after them like they've always been the enemy. These people are P*****d off and they aren't the "sheeple" they used to be. They are noticing the way the system works and they really believe they are going to "change politics as we know it". Which, of course, is why some are trying to co-opt them; however, from what I've seen - they aren't doing a very good job of it. It might be different in other areas of the country, but the groups around here really don't want anything to do with Washington/Lansing-types and are very suspicious of politicians in general.

[Ahkenaten]

Karl ROVE? You mean Karl ROVERER don't you? Anyway the middle class dream has become a middle class nightmare however the people are still asleep. As for the Tea Party, it is a co-intel op...........funded by the extremely wealthy again to divide and conquer.The ironic thing is that the people muttering platitudes about the Constitution, etc. never bothered to get hot under the collar when Boy Wonder infamously called it a g** Da**ed piece of paper" did they? The Tea Party is in reality a tar baby masquerading as a poltical movement funded by the usual suspects for the usual purposes, in this case to tap off the frustration and anger in the population molding it into a fake political movement that is as still born as the so-called "conservative" and "grass-roots democratic" movements in the US. This is why the population of the US is ridiculed world-wide for its ignorance, though they are only partly to blame, having been subjected to brutal dumbing down and brain-washing over the past 50 years. The population is taking a long, long time to waking up to the facts - there are no political parties, everyone is taking $$ from the same corporate entities, and there is no "freedom" for which we are told endless wars are to be fought both inside and outside the US. That freedom has been taken away, drip drip drip gradually over time using the frog in boiling water technique so that now that the water is reaching a rapid boil, the poor frogs mostly haven't a clue the pot has been on the stove and turned on for many years now. I don't know about middle class anarchy as you need a middle class to have middle class anarchy and the goal of eliminating the middle class is well on its way to being accomplished, and with it, the demise of any vestige of constitutional republican democracy and attendant institutions.

[Ahkenaten]

p.s. and my previous post nor none of the other posts even get into the taxation issue..........................Catherine Austin Fitz does a great job of analyzing the tax scam, wherein levels of government keep multiple books and are fronts for more investment scams and ponzi schemes..........it doesn't take a rocket scientist to look at the average property tax on a split-level ranch house and multiply that by the tax base in a county making adjustments for commercial properties and farms and it is easy to see that way more is billed out in property taxes annually than the on-the books annually approved budgets of local governments accounts for on paper................so the question is: where does that money go? People MUST WAKE UP - we have been had. And although all the talk about ETs, UFOs etc. is certainly titillating (I confess I am interested in that stuff too) is it not possible that in comparison to the way we have hoodwinked and who has done the hoodwinking, we should make sure that we apportion and prioritize our limited attention and energies. Fine ETs and whatever, but what about what is being done to the people here and now, and what about the potential for the spread of this disease - and it is a disease folks - world-wide. What about the systematic impoverishment of millions and the outright murders of many more for economic gain. Let's get some sense of proportion here and deal with interesting and provocative materials AND the practical, pragmatic, and very radical facts that pose a threat to our PRESENT and OUR FUTURE.

[sojorner]

This man Jerry Kane was a sovereign (also known as a Freeman on the Land)...helped people with understanding what was really happening with the mortgages, and taught people how to stop a forclosure....He and his 16 year old son were gunned down in May of this year by the police...

Here's one of his seminars on mortgages and banking on youtube http://www.youtube.com/watch?v=dWpA4YX6rio

[Humble Janitor]

Posted by Lost Soul (here)
The whole premise of the "tea party" movement is the middle class which is usually dormant standing up against government. The anger and frustration is swelling as these people are not your normal protesters (demonstrators). The media has led most people to think it's a racist movement against minorities. Typical disinformation from the elite ran media.

That's not the fault of the media. There's been enough members of this party espousing THEIR personal racism to give the MSM the impression that the Tea Party is full of angry, white people (and it mainly is).

I say, to hell with the Tea Party, Republican Party and Democratic Party. I'm going with the Party to end all Parties.

[Humble Janitor]

@kcbc2010- People hate what they do not understand. From my understanding, Obama's plan does not take full effect for another couple of years. Changes can be made between now and then to fix any problems that may adversely affect people.

Fox News has certainly done their job as stooges of the Republican party, making people hate something that they don't understand.

Republicans are distancing themselves because the Tea Party has been co-opted by the racist, theocratical elements that failed to take over the the Republican Party. When the best the Tea Party can do is Carl Paladino and Christine O'Donnell, well, they're not much different from the far-right Republicans.

[sjkted]

Posted by Humble Janitor (here)
That's not the fault of the media. There's been enough members of this party espousing THEIR personal racism to give the MSM the impression that the Tea Party is full of angry, white people (and it mainly is).

I say, to hell with the Tea Party, Republican Party and Democratic Party. I'm going with the Party to end all Parties.

I agree with all this. But, I also see the Tea Party as a beginning stage of evolution for something better. Some (but not all) of these people are just beginning an awakening process. Some may get bogged down in divide-and-conquer tactics (i.e. racism), but some may also begin to realize the true nature of the matrix and how important it is that society be rebuilt from the bottom up (i.e. each community taking responsibility for themselves and making their own decisions) rather than the top-down (i.e. TPTB issuing edicts on what the people need to do in order to serve them and determining who prospers and perishes based on their selfish interests.)

--sjkted