The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Thursday, July 25, 2013

Leading CEO of a home builder says rising rates are causing home buying decline

On July 25, the CEO of D.R. Horton addressed shareholders in an earnings conference call, and said explicitly that rising interest rates are draining the market of home buyers, and that the rapid rate rise is an unexpected shock to the industry.



  • *HOMEBUYERS 'SHOCKED AND DISTURBED' BY RATE JUMP, TOMNITZ SAYS
  • *D.R. HORTON CEO SAYS 'DISAPPOINTED' RATES ROSE SO 'VIOLENTLY'
  • *D.R. HORTON CEO SAYS TRAFFIC COUNT HAS SLOWED SINCE RATE RISE - Zerohedge

  • Rising interest rates is the biggest fear the Federal Reserve has had since their implementation of quantitative easing, and six years after bringing Fed rates down to almost 0, the market is now breaking upwards on its own. This uncontrolled rise in rates means that central bank polices have crossed over the technical line, where priming the monetary pump no longer provides the shelter against inflation and currency devaluation.

    Since the Housing Bubble and credit crisis of 2007/2008, the Fed has been primarily seeking to rebuild the housing and stock markets, under the illusion that wealth gained there would trickle down into all parts of the economy.  Unfortunately, when you use old tools and programs for new crises, the end result is what we have seen over the past six years... a temporary Band-Aid to stem a flood that is not only virulent, but has grown much worse because of the Doctors proscribed medicine.

    Tuesday, July 23, 2013

    Rising home prices coming from flippers not first time buyers

    In certain parts of the country, home prices are rising as the country digests trickle down portions of the $Trillion's in money printing coming out of the Fed's QE program.  However, a closer look at who is and who isn't buying houses shows that the majority of home buyers are hedge funds and flippers, and not the average American family or first time home buyer.


    There was a time when the US housing market was not "driven" by hedge funds armed with government-subsidized, "REO-to-Rent" loans loading up on distressed properties, by banks refusing to release foreclosed properties into the market (thus creating a market subsidy) or by foreigners eager to park their "tax-evaded" wealth with the Anti Money-Laundering exempt National Association of Realtors. Instead, the main driver of US housing were first-time home buyers, "typically couples in their late 20s or early 30s" who historically have accounted for about 40% of home sales. Alas, last year, and all throughout the New Normal, this number has been about 25% lower, or representing just 30% of all sales - Zerohedge

    It is these numbers that investors and all Americans need to be cautious about, and remember the winds of the 2007 housing bubble crash.  When prices reached their peak in the housing cycle, and the stock markets were reaching all-time highs, the end to it all came not only suddenly, but in a crash that nearly brought down the entire Western financial system.

    And this was before $20 trillion dollars was printed by the Fed in the last 5 years, and inflated into the economy.

    Tuesday, July 2, 2013

    Former Facebook associates seek to turn bitcoin into an ETF and make it a tradable commodity

    The Winklevoss Twins, known famously for being associated with the creation of Facebook at one time, are beginning their next capital venture in the markets.  On July 1, a filing was made with the Securities and Exchange commission to form a new public IPO, which would function as an ETF and facilitate the buying and selling of bitcoins via equity shares.

    To make it simple, the Winklevoss's wish to turn the electronic currency known as Bitcoin into a commodity, trade it as an equity in the public stock exchanges, and do this under an ETF the same way gold (GLD) and silver (SLV) is traded through JP Morgan.


    Logo courtesy of Forex Minute

    Winklevoss Bitcoin Trust, which is designed to operate like an exchange-traded fund, will initially sell $20 million worth of shares, with each share worth a fraction of a Bitcoin, a filing with the Securities and Exchange Commission showed on Monday.

    Cameron and Tyler Winklevoss, whose feud with Zuckerberg was portrayed in the fictionalized 2010 film "The Social Network," have amassed nearly $11 million worth of Bitcoins, according to a report in the New York Times in April. - Reuters

    There are many pros and cons to this attempted financial scheme, but few that would benefit the true users and recipients who hail bitcoin as an alternative currency to the fiat global system.  On one hand, by legitimizing Bitcoin as a commodity, and having it recognized by the SEC on a public stock exchange, the ability for the Treasury Department, Secret Service, or other government agency to seize bitcoin operations would be hampered.  However, it also means that the original foundation of bitcoin, an electronic currency exchange with a limited production capacity, can now be suspect to government price controls the same way the futures markets control paper spot prices rather than the market price of the physical commodity.

    In the world of finance, it is said that if bankers could leverage their mothers teeth to make a profit they will.  And although the Winklevoss Twins have a strong belief in the power and mission of the bitcoin currency, they also see the potential to exploit it for greater profits made in U.S. dollars, at the expense of the thousands of bitcoin owners who seek a different avenue for bitcoin's future.