RECOVERED HISTORY: How Wall Street tricked people into the real estate bubble & posts from Freerepublic showing the scam working
Here is an article on how Wall Street funded self help propaganda greased the Real Estate Bubble: exiledonline.com
From the article:
…snip…That’s what I kept wondering when I moved out to Victorville back in the Spring of 2009 to do immersion reporting from the front line of the real estate meltdown. Located about 100 miles east of Los Angeles on the edge of the Mojave Desert, Victorville got higher and crashed harder, in terms of real estate, than almost any other place in California. It doubled its size to 100,000 in just eight short years, growing from an isolated hick outpost into a booming commuter suburb filled with the cheapest McTractHomes south of Fresno. By the time I got there, Victorville was a ruined city filled with empty master planned communities, some of them half built and abandoned, rotting dry in the sun. I spent nearly two years reporting on the real estate swindle out there, and I never could stop thinking about the central question: How the hell were people coerced into moving out here? Why would anyone think that buying a $500,000 house in a desert 100 miles away from Los Angeles be good idea, no matter what kind of loan deal you got or how booming the market. What kind of propaganda were these people subjected to?
Well, this book provides a part of the answer: people were explicitly instructed to do so.
The Automatic Millionaire Homeowner hit the front bookcase displays at Barnes and Noble in March 2006, at the very top of the real estate market and just a few months before the whole thing crashed and burned. Its main message was simple: If you take out a mortgage to buy a home, you will always make money. There is no way you can lose—no matter when you buy, how much you pay or what type of loan you get. And the kicker is: both the book and finance expert who wrote it were bankrolled by Wells Fargo and Bank of America.
This book is just one of dozens—if not hundreds—of similar self-help snake oil guides promising a sure bet system to get rich in real estate. But it’s a good example of the massive propaganda effort financed by Wall Street that was designed to funnel as many people as possible into the mortgage meat grinder. The book was packed with blatant lies that seem so obvious and even comic in retrospect. The book was not put out by some shady fly by night operation, but by a supposedly credible financial expert who had the backing of the most well-known and respected banks, TV networks and newspapers
But the whole thing was a fraud, shamelessly boosted by some of the biggest names in news media—none of whom have been held accountable for their role in defrauding millions of Americans.
So let’s take a look…Crack open the book and turn to the introduction, it begins like this:….snip…
Which I want to follow up with a posting I did on another forum back in 2010:
On Freerepublic as the real estate market market bubble was growing I noticed a weird trend on there, Freepers who would talk down any concern about the price of real estate and Freepers who kept mentioning how they were moving to Nevada and talking Nevada/Las Vegas up as the new right wing paradise (no property taxes, pro gun laws, free market, etc.) while California (from where these Freepers claimed to be from) was now a socialist hell hole to move away from.
I found that very odd. At the time I kind of thought that maybe these were planted posts by real estate people eager to lure in more suckers? Or it could have been the combined delusions of the Freerepublic right wing group think manifesting itself?
“Currently 80 percent of Las Vegas homeowners underwater on mortgage” (as of 2010)
Click the link above to read about this housing bubble collapse as it is just dawning on freepers in 2005. Notice those that claim they are moving to Nevada from California and notice those that say real estate always goes up and that there is no bubble or that the bubble will never end.