Archive for October, 2011|Monthly archive page

Help me out here…

In American Sovereign on October 18, 2011 at 8:12 am
When a mortgage is initiated one of the first things that gets done 
is an honest appraisal is made of the value of the property.  
A loan initiator moves a line of credit with the central bank over 
to a new account in the debtor's name.  

The Debtor uses this line of credit 
to ask the bank to make new money.

An amount of new money is created equal to 
the agreed upon sale price of the property.  
The customer takes his new money 
and trades it for the property.
The seller puts the new money into his bank, 
declares his profits, 
and the bank changes the name of this new money to "deposits" 
and thus reserves for further business.


So, what if the popularly appraised value far exceeded 
the natural value of a piece of property?
Who takes the hit when these two figures correct with each other? 
(and they are in the process right now)

A)  The guy that has been paying interest payments 
for the privilege of having access to a line of credit.(99%)

B)  The institution that has been collecting and 
pocketing those interest payments all these years.(1%)

C)  Spread the loss across society via government.

D)  fill in the blank  __________________________________________