Cause of the crisis (The Housing Crisis and the Cost of Money)

The Connecticut State and Local police created the issues that caused the Thirty Trillion-dollar contraction. The Connecticut State and Local police created the issues that caused the Thirty Trillion-dollar contraction.  My adviser who had violated our agreement of confidentiality, provided information to a member of the family, after this member of the family had been released from a mental institution, stole records from my residence, with the help of another member of the family.  These records were given to Buster Cocivi, a.ka. Sylvester Cocivi a farmer in Easton, CT, who is a resident of Fairfield, CT, who provided information to the Fairfield Police Department, which was then given to United States Attorney Stephen Robinson, which were then given to President George W. Bush.  My adviser and James Broadbin and a former employee Attorney John Pavia, were in contact with Robert Morgenthau, Manhattan District Attorney.  James Broadbin had provided information to the FBI, that a resident of Stamford, CT, had been in contact with the Michael People from Canada, who were reporting visions of the Blessed Mother and Saint Michael by the seer of Bayside, Queens Veronica Luken.

The Michael People from Canada were invited to the White House, who provided dillusionary and empirical evidence to President George W. Bush on the apparitions of Veronica Luken of Bayside Queens.  The Blessed Mother had given information to the seer of Bayside that the International Bankers and Wall Street have been causing serious problems.  President George W. Bush, the FBI, and the Federal Reserve Chairman had ordered the Chairman of the SEC to Order the Bankruptcy of Lehman Brothers Holdings on September 14, 2008.

During the Katrina crisis in New Orleans, Louisiana, President George W. Bush had invited President Bill Clinton to the White House to raise money for the victims of the most serious hurricane in the United States.  President George W. Bush secret objective was to hire Bill Clinton to conduct information that he obtained from the Michael People from Canada and the FBI.

The actions of the Connecticut State and Local Police, the FBI, Manhattan District Attorney Robert Morgenthau, and the reports given by Attorney John Pavia, my advisor and James Broadbin to Robert Morgenthau and members of the family was nothing more than dillusionary and empirical evidence which lead to the near collapse of our capitalistic system.

The original argument that people (Subprime mortgage holders) who bought homes that they couldn’t afford is not supported by conclusive economic evidence.  Economic evidence supports the theory that the rise in the prime lending rate from four percent to eight percent was a contributory factor to the mortgage crisis.  The most credit worthy customers were paying 4% while the Adjusted Rate Mortgage Holders, who were a credit risk most likely, paid 8 or 9 Percent.  The prime lending rate was at 4%, July 1, 2003 – June 1, 2004, the most credit worthy customers paid the 4% rate.  When the prime lending rate rose to 8 percent June 1, 2006.  The Adjustable Rate Mortgage Holders, who were a credit risk, most likely paid 16 to 20%.  It is very obvious it was the cost of money that they couldn’t afford, not the price of the home.  Their was an inverse relationship between the Cost of money and the Price of the homes.  When the cost of money increased the price of homes declined, the housing market dropped, they lost their jobs, they couldn’t afford to pay the mortgage.  Investors who bought derivatives credit default swaps, and wagered that the Adjusted Rate mortgage Holders wouldn’t default took large losses like AIG.  Enron invested heavily in derivatives and lost money, and raised the cost of electricity, when they were under contract to sell electricity at a lower price, and lost money in order to deny the Enron employees their pensions.  Terry Gross from NPR Interviewed Frank Partnory in his 1997 Book “FIASCO:  Blood in the Water on Wall Street, July 17, 2011, Professor at the University of San Diego, CREDIT DEFAULT SWAMPS.       Note. the Author of the eBook by Frank Palumbo “How I Stopped the Financial Crisis in 2008 and 2009” Provided his own research on the Cause of the Crisis and disputed the professionals.
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