The State Wants to Nationalize Second Mortgages. What Possibly Can Go Wrong?
Recently, Freddie Mac, a government-sponsored enterprise, sought approval from its oversight agency, the Federal Housing Finance Agency (FHFA), to purchase and guarantee second mortgages in the United States.
While the business case for this proposal is deficient (for an excellent perspective on that, see the article by R. Christopher Whalen), I will discuss the economic and political premises behind this move and its possible consequences.
What Does It Mean to “Nationalize Second Mortgages”?
Understanding the single-family mortgage market in the US means realizing that there is no market in the real sense of that term. A whopping 70 percent of home mortgages in the US are owned or guaranteed by Freddie Mac and Fannie Mae, the two government-sponsored enterprises created by Congress to “support the housing market.” When the Federal Housing Administration and ancillary agencies are included, the proportion of mortgages supported by the government rises to approximately 95 percent. Naturally, this ubiquitous subsidy scheme supports a political goal—that of widespread home ownership—while making mortgages more accessible and homes much more expensive.
The government-sponsored enterprises are only nominally private—they were established by Congress specifically to “provide liquidity” to the home mortgage market by buying mortgages originated by banks and other institutions. They have always been subject to regulatory oversight by the government. This is especially true since their failure during the 2008 housing crisis, at which point they were placed into conservatorship under the FHFA.
Aside from mortgage loans, which are primarily used when acquiring a home, homeowners have additional ways to access the equity in their home. Banks and credit unions offer home equity lines of credit, home equity loans, and other second mortgage products to prospective borrowers. They’re “second” because, while secured by the underlying property, they are legally subordinate to the existing (“first”) mortgage. As such, second mortgages are riskier, are generally smaller in size, and incur a higher interest rate. Freddie Mac wants regulatory approval to hold these loans.
Freddie Mac, if approved, will almost certainly be followed by Fannie Mae. Thus, Freddie Mac’s proposal is an attempt to de facto nationalize the second mortgage market, in similar fashion to the existing first mortgage market.
There Will Be Blood
The Freddie Mac proposal should be seen in the context of an ongoing housing bubble combined with all-time highs in consumer debt. The Case-Shiller US National Home Price Index remains at all-time highs despite leveling off around the time benchmark interest rates increased in mid-2022.
Figure 1: Case-Shiller US National Home Price Index compared to the median weekly real earnings of those employed full time, 2019–24
In the meantime, consumer debt continues to climb as price inflation persists and real wages are stuck.
The political imperative is clear—get more people to borrow against the equity that’s been created in the housing bubble of the last ten to fifteen years, especially the last four years. Doing so will likely boost gross domestic product figures as homeowners convert illiquid paper wealth into actual liquidity with which they will buy goods. Never mind that the debt created by this will pile on top of an already-unsustainable burden. This is especially true for the lower- and middle-income segments of the population, as 36 percent of US adults have more credit card debt than emergency savings.
Subverting the Free Market Again
If market participants wanted additional liquidity in second mortgages, they would create and price it accordingly. Shoehorning government participation will only guarantee malinvestment and significant collateral damage, exacerbating existing problems with asset inflation and household indebtedness. The will of individuals acting in their own interests is what creates a healthy market—not government decree from increasingly harebrained regimes desperate for shallow political points.
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FLASHBACK: Dr. Robert Epstein Now Recording Data That Google Is Using to Brainwash the Public & Steal Elections
Renowned author & researcher Dr. Robert Epstein is now LIVE on The Alex Jones Show providing exclusive intel about Google’s ability to manipulate how people vote. Take a moment to watch & share his mega-viral appearance on Infowars from October.
Dr. Robert Epstein of mygoogleresearch.com joined The Alex Jones Show to break exclusive intel about his campaign to chronicle how Google is using “ephemeral content” to brainwash the public and rig elections.
“We are recording information that these tech companies never thought anyone would record, it’s what they call internally at Google ‘ephemeral content,’” said Epstein to Jones Friday. “It’s running the world right now, ‘ephemeral content,’ that’s what they call this content that they use to manipulate us, our kids, and our votes.”
Dr. Epstein continued:
“It’s almost subliminal, it’s content like search results, search suggestions, news feeds, it’s content that’s generated for all of us on the fly, it’s personalized very often, and it affects us – we click on something and then ‘poof,’ like a puff of smoke, it’s gone forever.
My team and I, are the only team in the world that is now focusing on new forms of manipulation that the internet has made possible. Many of these new techniques are in the hands of just one company, namely Google.
Bottom line: If we don’t stop them in the 2024 election, Google alone will be able to shift between 6.4 and 25.5 million votes to one candidate.
They are picking our presidents, our senators, our members of congress, our attorneys general. They’re also indoctrinating our children on a massive scale.
They are the most powerful mind control machine that has ever been invented. They have more power to shift thinking, behavior, attitudes, beliefs, purchases, and votes than any company or any dictator has ever had in the history of humankind.
They are impacting more than 5 billion people every single day. And they’re doing this in a way that involves very very intense social engineering.”
If Dr. Epstein’s comments on Google sound familiar, it may be because you recall Alex Jones describing this phenomenon in his famous 2017 interview on Joe Rogan’s podcast. (Video starts at 1:51:40)
“Google was set up … to build a giant artificial system. Google believes that the first artificial intelligence will be a supercomputer based on the neuron activities of the hive mind of humanity with billions of people wired into it with the internet of things,” said Jones to Rogan in episode 911 of The Joe Rogan Experience. “So all of our thoughts go into it and we’re actually building a computer that has real neurons in real-time that’s also psychically connected to us that are organic creatures so that they will have current prediction powers, future prediction powers – a true crystal ball.”
“But the big secret is, once you have a crystal ball and know the future, you can add stimuli beforehand and make decisions that control the future.”
“And so then it’s the end of consciousness and free will for individuals as we know, and a true ‘2.0’ in a very bad way. Hive-mind consciousness with an AI jacked into everyone, knowing our hopes and dreams, delivering it to us – not into some ‘P.K.D. Wire-head System’ where we plug in and give up on consciousness because of unlimited pleasure – but because we were already wired-in and absorbed before we knew it, by giving over our consciousness to this system by our daily decisions that it was able to manipulate and control into a larger system.”
Later in the interview, Jones mentioned a Wired article that described Google was building an AI to end human consciousness and free will.
The Wired article Jones referenced is likely author Marcus Wohlsen’s 2014 piece titled Google’s Grand Plan to Make Your Brain Irrelevant.
Here are a few excerpts:
Google’s web search engine already uses a powerful type of artificial intelligence to find what you’re looking for in the chaos of the web, and it has built an insanely profitable ad business atop this engine. But recently, the company has been bulking up its roster of geniuses as it seeks to explore a new branch of artificial intelligence known as “deep learning.”
Basically, the idea is to mimic the biological structure of the human brain with software so that it can build machines that learn “organically” — that is, without human involvement…
At the moment, it seems, no other institution on earth has the concentration of brain power — coupled with the money, technology, and freedom — to chase the dreams that have fueled a century of science-fiction speculation. Lifelike robots, sentient machines, the Jetsons’ smart home in the sky. Google is spending billions to make itself the place where these fantasies become facts…
The more Google “knows,” the less we have to remember. We just Google it. Now imagine that same kind of intelligence Google applies to the web set loose on your personal existence, not just online but out in the real world.
If its artificial intelligence dreams come true, Google might end up knowing you better than you know yourself. As we export more and more of our intelligence to Google, the question might become: What are our own brains for?
In closing, recall Jones’ key remark to Rogan on the issue.
“This is an inter-dimensional force that wants to influence us to build something that absorbs us and kills us.”
Interestingly, tech billionaire & X boss Elon Musk posted a similar sentiment Friday afternoon:
The real fight is not between right and left, but rather between humanists and extinctionists
— Elon Musk (@elonmusk) October 6, 2023
Alex Jones Explains The Interdimensional Battle For Our Souls
Shock Video: Amazon Workers Fight Off Violent Carjacker
A pair of Amazon workers thwarted a carjacking attempt by a suspect with a lengthy rap sheet in New York City this week, according to reports.
The harrowing incident unfolded in broad daylight on Sunday in the Big Apple.
A man approached an Amazon delivery truck sitting in traffic near a fulfillment warehouse in Jamaica, Queens, and attacked the female driver.
“The man, identified as 29-year-old Kevon Wilson, allegedly punched the female employee repeatedly, dragged her from the van and then jumped in the driver’s seat,” the New York Post reports.
The victim managed to pull the keys out of the ignition before she was removed from the vehicle.
In the meantime, one of her male coworkers in another truck jumped out and rushed to her aid,
Another motorist captured an ensuing beating the colleagues dished out against the suspect.
?????: An Amazon driver beats up a would-be-carjacker after the homeless man pulled a female Amazon driver from her vehicle and attempted to steal it while she was stuck in traffic in New York last weekend.
The alleged homeless man was dressed in all black and allegedly… pic.twitter.com/FSDbDMC1vZ— RedWave Press (@RedWave_Press) June 21, 2024
Incredibly, the failed carjacker jumped back into the key-less truck but was unable to escape.
He was arrested a short time later and charged with robbery and assault.
Wilson reportedly has a long arrest record and also had a warrant out for a traffic violation.
A judge at Queens Criminal Court set Wilson’s bond at $7,500.
Both Amazon workers suffered mild injuries but refused medical attention at the scene.
InfoWars has been documenting the surge of crime across the United States, including carjackings, ‘street takeovers,’ smash-and-grab loot mobs, home invasions, and physical attacks on innocent victims.
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Texas Nurse Says FBI Threatened Her For Exposing Child Sex-Change Operation
FBI agents reportedly threatened and intimidated a nurse in Texas after she exposed the Texas Children’s Hospital’s ongoing child sex change operations.
The nurse, Vanessa Sivadge, alerted journalist Chris Rufo last year that the hospital’s child gender clinic was still actively diagnosing children with “gender dysphoria” and recommending pharmaceutical and surgical options days after Texas AG Ken Paxton ordered it shut down.
“In the cardiac clinic, we were taking sick kids and making them better,” Sivadge described at the time. “In the transgender clinic, it was the opposite. We were harming these kids.”
“Then, two months after I spoke with her for that story, Sivadge called me in a panic,” Rufo wrote in an article this week.
Sivadge was the anonymous whistleblower who denounced TCH’s child sex-change program in an interview with me last year. After that, she says, the FBI sent two agents to her home to intimidate and threaten her. pic.twitter.com/ZSInVH3zrv
— Christopher F. Rufo ⚔️ (@realchrisrufo) June 18, 2024
“The FBI had sent two special agents, Paul Nixon and David McBride, to her home. The agents knocked on the door, asked her about ‘some of the things that have been going on at [her] work lately,’ and then asked to enter her home. She was terrified. (The FBI declined to comment.)”
Sivadge was informed she was a “person of interest” in a case pursuing the Texas Children’s Hospital whistleblower that exposed the child gender clinic, who they claimed violated privacy laws.
“They threatened me,” Sivadge told Rufo. “They promised they would make life difficult for me if I was trying to protect the leaker. They said I was ‘not safe’ at work and claimed that someone at my workplace had given my name to the FBI.”
After the visit, Sivadge later went on to discover the hospital appeared to be billing transgender services to the state taxpayer-funded welfare health service Medicaid, which specifically prohibits use of funds for gender-affirming care.
But there was more. She knew that Texas prohibits state Medicaid funds from being used on “gender-affirming care.” And yet, she noticed that many patients in the child sex-change program were enrolled in state Medicaid—which, she believed, was a violation of the law. pic.twitter.com/dsDizM4H56
— Christopher F. Rufo ⚔️ (@realchrisrufo) June 18, 2024
A Texas Medicaid expert consulted by Rufo concluded, “Based on the facts we have, the only reasonable conclusion is that Texas Children’s Hospital was using Texas Medicaid funds to pay for ‘gender-affirming care,’ contrary to Texas law.”
Revelations of Sivadge’s FBI visit come as armed federal agents this week arrested Dr. Ethain Haim, who they suspect to be the initial whistleblower who had leaked documents exposing Texas Children’s Hospital’s continuance of its sex-change program.
“Standing in that courtroom and hearing those words, ‘facing up to 10 years in federal prison,’ is terrifying,” Haim said in an interview with Fox News host Laura Ingraham this week. “You think about everything I could miss, my family, the birth of my first daughter, the first few years of her life. But there’s something greater to fear, and that’s the fear of not doing something.”
“What kind of world is that going to be if we don’t stand up?” Haim continued. “We need to win because, if we lose, the door closes permanently on whistleblowers in the healthcare system.”
Watch: Mexican Smuggler Crashes Through Ranch Fences With Truck Full of Illegals
An illegal alien from Mexico was arrested along with five illegals he was transporting following a wild pursuit across private ranch land in Texas this week, according to authorities.
The incident unfolded on Wednesday in Maverick County near the southern border.
The driver of a Ford pickup truck led Texas Department of Public Safety (TxDPS) troopers on a high-speed chase along U.S. 277 before barreling through a ranch fence and into the scrub.
TxDPS released footage of the bust, which involved aircraft, U.S. Border Patrol Horse Patrol, and a brush team.
ARREST DETAILS pic.twitter.com/7CxJuJoFs5
— Chris Olivarez (@LtChrisOlivarez) June 20, 2024
After crashing through five ranch fences, the vehicle eventually came to a stop and six male occupants bailed out and attempted to flee on foot.
They were all apprehended and identified as illegal aliens from Mexico, including the driver.
“The smuggler, Carlos Alberto Urbina Miralda, an illegal immigrant from Mexico, was charged with five counts of smuggling of persons, five counts of criminal trespass, five counts of criminal mischief, evading arrest, and unauthorized use of a motor vehicle,” TxDPS spokesman Lt. Chris Olivarez explained in a statement.
The five passengers were each charged with with five counts of criminal mischief, five counts of criminal trespass, and evading arrest on foot.
Authorities discovered one of the illegals, Nestor Farid Garcia Morales, was wanted on six outstanding warrants in Saint Croix County, Wisconsin.
Dangerous smuggling pursuits unfold constantly along the U.S.-Mexico border, as InfoWars frequently reports.
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Wife of Google Whistleblower Killed In Car Crash
Dr. Robert Epstein, on X @DrREpstein, suggests his wife’s 2019 fatal car crash was NOT an accident.
Epstein said that after he briefed a group of state AGs about Google’s power to rig elections, one of them approached him and said, “I think you’re going to die in an accident in a few months.”
His wife died a few months later in a fatal crash that Epstein claims might be connected to his testimony about Google’s search engine bias in US elections.
“They are picking our presidents, our senators, our members of congress, our attorneys general,” Epstein said on The Alex Jones Show in 2023.
Bottom line: If we don’t stop them in the 2024 election, Google alone will be able to shift between 6.4 and 25.5 million votes to one candidate.
Head to MyGoogleResearch.com for more information!