property

The Housing Bubble and the Limits of Human Knowledge

"Senior government officials previously denied that the government was on the hook for Fannie and Freddie (presumably thinking that their denial would never be tested by events — a bad theory). What financial shape were Fannie and Freddie in as the crisis proceeded? How bad would the effects of the shriveling bubble be? How much can you trust the word of government officials? How much about the financial future can central bankers or anybody know? Consider the lessons of the following 10 quotations." Continue reading →

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Bill Bonner: A Close Encounter with Zombiedom

"When it comes to zombies, nothing beats government. The feds have the power to force people to do things they would rather not do... notably, support bloodsucking zombies. So, when the elite landowners of Anne Arundel County, Md., got together with the environmental protectors and enlisted the power of government... you could be sure that money was going to change hands. In the event, some of it came to your humble zombie-fighting editor. You see, the idea was elegant. Subtle. And very profitable for those who understood what was going on. The landowners – often from old farm families – wanted to hold on to their land. But the cost of holding it was rising." Continue reading →

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Bernanke’s Subsidies: Houses and Cars

"What happens when the Federal Reserve promises to create $1 trillion in fiat money per year, and then starts by buying long-term Treasury bonds and Fannie/Freddie bonds? Interest rates go up. Wait a minute. Weren’t interest rates supposed to go down? Yes, they were. That is what Keynesian economics teaches. Problem: Keynesian economics is wrong. But Bernanke and the FED will move forward, inflating on a scale undreamed of prior to 2008. That is the only trick it has up its collective sleeve. 'When in doubt, inflate.' That is alpha and omega. That is the law and the prophets. Lock in that mortgage rate." Continue reading →

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Locksmiths and firemen refuse to aid evictions in Spain

"Locksmiths and firemen in Spain are rebelling against a wave of evictions in the economic crisis by refusing to help bailiffs open ruined homeowners’ doors to throw them out. A wave of evictions of mortgage-holders ruined by the recession has prompted several suicides and sparked a protest movement that last week brought a motion to parliament for a law to end the procedure. With the locksmiths refusing to take part, some authorities have been asking the fire service to step in and break open the doors of those resisting eviction. [..] When the firefighters arrived they refused to open the door and some of them joined in the protest." Continue reading →

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China ousts police chief ‘who owns hundreds of houses’

"A Chinese police chief has been sacked after reports he owned hundreds of houses and a false identity card, state media said Wednesday in the latest scandal to fuel public outrage over corruption. Zhao Haibin was stripped of his public offices for 'engaging in business deals using a fake identity card', the state-run Xinhua news agency reported, citing the Lufeng city government in the southern province of Guangdong. The case is the latest of a series involving officials owning multiple houses with different identity cards and residence permits." Continue reading →

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Bernanke Said to Minimize Asset-Bubble Concern at Meeting

"The Fed chairman brushed off the risks of asset bubbles in response to a presentation on the subject from the group, one person said. Among the concerns raised, according to this person, were rising farmland prices and the growth of mortgage real estate investment trusts. Falling yields on speculative- grade bonds also were mentioned as a potential concern, two people said. The 'first line of defense' if bubbles emerge 'needs to be regulatory and supervisory' actions rather than changes in monetary policy, according to Bernanke." Continue reading →

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You Should Be Able to “Dear John” The State

"Meet Ray. We'll call Ray a conscientious objector, because he acts out of conscience. People confine this term to those who object to military service. But why do those persons object? A conscientious objector is someone who wants the right to divorce a service provider or institution. He is disgusted by what is done in his name under the rubric of democracy, appalled at what is done with the money extracted from him in taxes. He wants to terminate his support. You may think Ray is noble until I tell you to what he objected: State schooling, otherwise known as 'public schools.'" Continue reading →

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Ecuadorean Tribal Leaders Fight Government, Gold-Hungry Chinese

"The most famous case of Shuar 'insolence' occurred in 1599, when the Spanish governor of Maca demanded a gold tax from local Indians to fund a celebration of the coronation of Philip III. The night before the tax was due, Shuar armies slaughtered every adult male in the Spanish hamlets and surrounded the governor’s home. They tied the governor to his bed and used a bone to push freshly melted gold down his throat, laughing and demanding to know if he had finally sated his thirst. For the next 250 years, the Spanish mostly stayed away. Occasional attempts by Jesuit missionaries to reestablish contact were met with a welcome basket of skulls." Continue reading →

Continue ReadingEcuadorean Tribal Leaders Fight Government, Gold-Hungry Chinese

Ecuadorean Tribal Leaders Fight Government, Gold-Hungry Chinese

"The most famous case of Shuar 'insolence' occurred in 1599, when the Spanish governor of Maca demanded a gold tax from local Indians to fund a celebration of the coronation of Philip III. The night before the tax was due, Shuar armies slaughtered every adult male in the Spanish hamlets and surrounded the governor’s home. They tied the governor to his bed and used a bone to push freshly melted gold down his throat, laughing and demanding to know if he had finally sated his thirst. For the next 250 years, the Spanish mostly stayed away. Occasional attempts by Jesuit missionaries to reestablish contact were met with a welcome basket of skulls." Continue reading →

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New UK wealth tax plan to target ALL assets – including jewelry and buy-to-let homes

"Families will be forced to pay tax on jewellery and other heirlooms under controversial new plans drawn up by the Liberal Democrats. Under the scheme, tax inspectors would get unprecedented new powers to go into homes and value rings, necklaces, paintings, furniture and other family treasures. Householders would be forced to pay a new ‘wealth’ levy on the assets – with the threat of fines for those who refused to let snoops value their possessions. A policy document seen by The Mail on Sunday spells out how the taxman ‘may have to visit homes to test values of jewellery, paintings, etc’." Continue reading →

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