Phillip Tilley
Your house isn't worth what you're paying
November 6, 2008 |
46 comments
Image Credit: sxc.hu
Your house isn’t worth what you’re paying for it, then again it never was. An estimated 12 million Americans owe more on their mortgage than their homes are worth. Add to that the fact that home prices are dropping, down 9% from a year ago. Real estate was traditionally the one thing you could count on, going up in value at 10% annually on average. One of the mechanisms of the money matrix is to make you pay more for your house than it is worth. This is usually accomplished through the sinister use of compound interest. There was a time in this country when compound interest was considered usury and was illegal. Today, sadly it is the norm.
If you had started buying a house in 1980 for $50,000 at an interest rate of 8.5%, not unusual at the time, over the course of the 30 year mortgage you would have paid $200,000 in interest. That means when you signed the papers to buy that $50,000 house, you really agreed to pay $250.000 over 30 years for that house. That is five times as much as it was worth at the time.
Likewise if you were looking to buy an average home in America now at a price of $200,000, you will really be paying closer to a million dollars over 30 years with $800,000 of that in interest! If the real estate agent told you the house is worth $200,000 but you will be required to pay a million for it, would you do it?
Recently while called before Congress, former Fed Chairman Alan Greenspan called the banking and housing crisis a “Once-in-a-century credit tsunami.” Once in a century means one time in a one hundred year period. I pointed out in my article “2012 and the Economy” that the monied elite were on a 100 year timeline from December 21, 1913 to December 21, 2012. It seems Alan Greenspan vindicates that fact.
One way to avoid paying more than a house is worth is to pay cash for it in one lump. The only problem with that is that most of us,(98%) do not have the ability to pay full price up front. Only two groups of people can do that, those who are the monied elite, and criminals. Poor dumb honest b******* have to apply for credit.
Alan Greenspan said, “There is a flaw in the model that defines how the world works.” This flaw is The Money Matrix! Greenspan further said, “I still do not fully understand why it happened.”
In the old days, before the money matrix, banks actually had money they loaned to people to buy a house.
They charged a small interest rate, 4%, which allowed people to pay off the house in a ten year period with a default rate of less than one half percent. That means 99.5% of everyone were able to pay back the loan of real money to buy real estate.
Today, banks do not loan real money because they do not have any money to lend. There is no money! Instead they extend credit, a negative in the first place, add to that compound interest of 8% over 30 years. The idea is to separate you from all the income you will earn in your lifetime. It is a mechanism of the Money Matrix.
Wake up people, the money matrix has you!
Phillip Tilley is author of The Money Matrix of the New World Order and other articles.
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