Bare with me. What if the housing bubble wasn’t a run away capital market? What if it was planned by socialists?

Think about it.

Fannie Mae and Freddie Mac are no longer government sponsored entities (GSE). No they are wholly owned government entities. That means there is a very good chance that the government is holding your loan. The government is now holding trillions of dollars in mortgages.

Think of it another way. You don’t own your house. The bank does…or should I say…the bank used to own your house.  All you own is a small percentage of your home and if you stop making payments, you will soon find that you own none of it.

But wait…

The banks sold the loans to Fannie Mae and Freddie Mac…and Fannie and Freddie were going bankrupt so the government took them over. In other words, the government now owns trillions of dollars in real estate.

Don’t worry.

The government doesn’t want your house. They want you to stay in your home (just like they want you to keep your doctor) for now. And you can sell your home anytime you want. You’ll just have to pay Obama’s new real estate tax that everyone must pay…even us suckers who make under $250,000. So you can sell your home, but it won’t be easy.

But what if it gets worse.

The Great Depression didn’t end when Hoover handed over the reigns to FDR. As a matter of fact, the depression dragged on for years. I’m not saying FDR wanted to drag on, but he sure did take advantage of peoples desperation. He stole property, demonized businessmen and destroyed food while men stood in line at soup kitchens. He was the closest thing we have had to a a socialist dictator (which is why Barack Obama compares himself to FDR and liberals everywhere love him).

So what?

If we hit another desperate time, our government is not poised to say, “We have these empty homes and people who need them”. They won’t give them away because “the people own the home”, but they will let you live in the home.

Seems to me like we just took one huge step toward socialism. The only thing we are missing is that last crisis (like Europe collapsing or a new Korean War or a huge environmental disaster). Face it, the government already owns most of the homes in America. They own the car companies. They are poised to take over the health care industry and banks. What’s next, the oil companies?

We aren’t that far away from socialism. Let’s just hope my mind is gone a little wacky after a long hard day of working so someone else can retire early.

You can leave a response, or trackback from your own site.