Arab Kings Buy Record US Government Bonds

Today's view out on the deck

October 9, 2007

Elaine Meinel Supkis

The world financial systems are set to run down towards oil pumping nations with small overheads or to new manufacturing bases with large population overheads. As the US/European empire rots, people here in the US media celebrate the fact that everyone who wants to control us are buying our debts. Cheap! But real estate markets are collapsing in the world's #1 and #2 economies! And Europe's housing boom is beginning to go down the same slope Japan and the US is going. I don't see 'good economic news' here. And investors here are being told, to get rich, you should invest in the booming Chinese stock markets. HAHAHA. The dragon will 'be bank'!

From Bloomberg:

The biggest quarterly rally for U.S. government securities in five years is getting an extraordinary boost from the burgeoning reinvestment of petrodollars by the Organization of Petroleum Exporting Countries.

OPEC members increased their holdings of Treasuries 12 percent this year through July to $123.8 billion, Treasury Department data show. The prospect that OPEC's share of U.S. debt is growing is based on the 31 percent rise in oil since December, which will raise OPEC revenue 4 percent to $630 billion this year and 9 percent to $688 billion in 2008, according to estimates by the U.S. Department of Energy.

As the US overspent its budget many years ago under Reagan, we didn't see huge hikes in interest rates. Instead, starting with Reagan, who I recall, claimed he would fix the government which had enough debt that if one lined up all the trillion dollars, it would go to the moon, has instead, driven us deeper into debt. Every year, we go deeper and deeper into debt. We went from $1 trillion in 1982 to $9 trillion in government debt today. The vast majority of this debt in the last 17 years has been bought by people interested in controlling our government. Foreign powers are buying our debt. Foreign sovereign funds are buying our debts. Japan, which has a huge debt overload itself with its own overspending, is the biggest holder of US government debt.

Let's restate this: the worlds #2 economy has the majority of new government debt of the worlds #1 economy. And both are deep in debt, got that? The British Empire which glued itself to our own empire back in WWII, is deep in debt to the US over the years and is the second most indebted nation on earth after the US and who holds the the second most US bonds! Eh? How's that?

Then there is the #3 holder: China! China is a rival empire. It also wants to control the US government. Like the British who have insinuated themselves into our empire and now strut around the planet, thinking they still rule, or the Japanese who want to use the US to dominate Asia, China is also very interested in in controlling the US. The oil pumping kingdoms in the Middle East are very anxious to control the US. This is the only reason they are buying these debts. They are most anxious to 'be bank'. There is a lot of literature online about 'Islamofascism'. But what is going on is simple: the US, unable to deal with the Hubbert Oil Peak at home, has collectively decided we will ignore this and we will either conquer all oil pumping nations or if that fails, dominate them in other ways.

The idea that our reliance on foreign oil is enslaving us and we are responsible for this, is ignored. And the other idea that people in other lands will devise systems and ways of controlling us, defying us and in general, taking advantage of our lunatic desire to ignore energy costs...well! Here we are, the US has exported oil inflation by sending our industries to China. And we still consume great amounts of energy so we import even more oil than ever and the money we hand out is pouring into China and the Middle East and this comes back home in the form of us going ever deeper into debt to these entities who intend to exploit this by subtly or strongly manipulating our foreign policies to suit them.

And they are all in various conflicts! Japan is in a very big conflict with China. A year ago, Japan was selling down its hoard of US government bonds. China was buying. Suddenly, the Japanese realized this and they began to buy again for they are frightened the US might end up going after them on trade issues.

From the Bloomberg article:

The yield on the benchmark 4 3/4 percent note due in August 2017 rose 4 basis points last week to 4.64 percent, according to New York-based bond broker Cantor Fitzgerald LP. The price, which moves inversely to the yield, fell 10/32, or $3.13 per $1,000 face amount, to 100 7/8. A basis point is 0.01 percentage point. In trading today, the yield fell almost 2 basis points, or 0.02 percentage point, to 4.62 percent.

OPEC's windfall suggests there will be demand for U.S. debt from international investors even as the dollar falls to a record low versus the euro, said Michael Pond, a debt strategist at Barclays Capital Inc. The London-based firm is also a primary dealer. Among foreign holders only Japan, China and the U.K. own more Treasuries than the 12 members of OPEC, which supplies more than 40 percent of the world's crude.

I find it interesting how the Bloomberg article mind-reads the Arab oil kings. OPEC is propping up the US because the US has nuclear bombs. And these kings are triangulating. They are doing business with China and the US and they also have a very troubled relationship with Russia. Russia nearly destroyed OPEC in the 1990's. Now Russia sits outside of OPEC but is the controlling non-voting member. And the developing Russian/Chinese alliance troubles the kings who are beset by radical revolutionaries like the bin Laden movement as well as fellow OPEC member, Iran.

The war talk aimed at Iran rises by the month. The US dutifully goes forth to attack Iran at every turn. The Arab kings fear the Shi'ites for the same reasons the Japanese fear the Chinese: thousand year old rivalries that spring into action the minute money pours in. The intersection of diplomacy, money and history is very dynamic. One can't ignore other parts when discussing money or the news today.

The US should not be going outside for ONE PENNY of debt. The fact that we are doing this more and more and pretending this is all a very naive game of lending money with no strings attached is beyond foolish: it is infantile. I often marvel at the deliberate infantilism of our economic and political commentary in the mainstream. The US people have to make choices: they want China to not have power over us, we got to stop sending our factories there. They want the Arab Muslims to have no power over us, we should ban all SUVs and other gas guzzlers and tax energy heavily. Otherwise, we must accept the fact that we lost our sovereignty and we are now going to be ground to death by the gears of history as we lurch from one foriegn disaster to another.

From the BBC:

Eurozone ministers have called for China to reform its currency, saying it is too low in value. The ministers were gathering in Luxembourg ahead of a key meeting of the G7 nations later in October.

While the US has long been a critic of China's currency policy because it says a weak yuan harms exports of US goods, Europe has not been as vocal.

The eurozone group said emerging countries - "especially China" - needed to change their exchange rates.

Dear Europe: who, pray tell, is driving up the value of the euro? Are you all going to turn on Japan and begin yelling? Why are the Europeans accepting Japan's .5% interest rate at face value? Why are they permitting the 'carry trade'? Is this coming out of China? No? HAHAHA. Indeed: the barking dogs of Europe, pausing from yapping at Russia, demanding Russia not wield power over them, now rush to China who has little to do with the rise in the value of the euro. Europe could get smart and start buying up yen and drive it up in value! This would mean dumping dollars in their FOREX reserves...but they don't want to use obvious tools at hand which China uses astuely. No, they want China to 'fix' things as if this is the Plaza Accords or Bretton Woods Agreements!

The game to depress the value of a currency for foreign trade continues! This is very deflationary and if it weren't for wars and the Hubbert Oil Peak as well as China sharing the wealth with the working class who were former peasants, why, we would already be deep inside a global depression! The thing driving world economies is still, as always, the workers: they are buying things that are being manufactured. And the place this is happening a lot is China. The US, England and Europe have spent their share of world wealth in the last 17 years on housing bubbles. China is spending it on elevating the working class. This is why the system is still dynamic.

From the Nikkei:

Sony Cuts PS3 Prices In Japan As Holidays Near

TOKYO (Dow Jones)--Sony Corp.'s (6758) game unit said Tuesday it would cut the prices of its next-generation PlayStation 3 game consoles in Japan, as well as offer a new low-range model from November.
************************************************
Slower Housing Starts Cut Demand, Prices Of Building Materials

TOKYO (Nikkei)--A sharp decline in housing starts, including condominiums, caused shipments of key construction materials to drop by 4-8% year on year in August, driving the wholesale price of lumber steeply lower and prompting some manufacturers to consider reducing production of steel reinforcing bars.
************************************************
ON THE RADAR: REIT Market Focuses On Foreigners' Trading Data

TOKYO (Nikkei)--The real estate investment trust market is anxiously awaiting the September trading data for overseas investors amid rising concern that they are running short of funds to invest in Japanese assets. The data will be released by the Tokyo Stock Exchange around next Monday.

Sony can't sell in Japan unless they drop prices? The depression rages there due to lack of buying power in the working classes who have had hours cut and wage cuts for years now. Japanese exports soar, profits soar but at home, things are bad. Profits selling to themselves are dropping and instead of improving, the Japanese just went through one of the world's biggest monetary and trade booms and the home base is depressed? Eh? What??? Not a yen of this tsunami of wealth has entered the tiny apartments of Tokyo's teeming masses.

Indeed, housing construction for these little warrens is shutting down due to lack of ability to buy or rent. The EU should be yelling at Japan to raise wages of their workers and let in European exports! The Europeans should see that the black hole here is not dynamic China that is providing services much needed by Europe, Japan and the US---killing oil inflation costs----but it is really Japan that is the sick entity.

And the cure isn't to let Japan export more. Japan's exports have soared as spending at home has died!

This latest attempt by the Europeans to jawbone the dragon will fail. The Chinese figured out how things work, why can't the European bankers? If they want to weaken the euro, they can copy the Bank of Japan! This is impossible because Europe has no controlling authority that can do this unilaterally. The entity in Japan, the Bank of Japan, works with MITI and the LDP to control the government and thus, the monetary policies set by everyone which is in unison, they are all seeking the same goals and none of them give a hoot how many Japanese are forced into poverty to do these things.

But Europe is a gaggle of geese, a pack of barking dogs. There is no unity of purpose nor is there a means of using all that half a trillion in FOREX reserves to target other currencies! Indeed, the fiction that FOREX reserves are neutral is a key propaganda point for the G7 dwarves. Japan certainly doesn't want anyone to notice they manipulate all world currencies via the world's #2 FOREX reserves!

Japan's foreign exchange reserves hit an all-time high of 945.60 billion dollars at the end of September, buoyed by rises in prices of US government bonds and a stronger euro, the government said Friday.

The previous record of 932.16 billion dollars was reached in August.

Um, I do hope someone in Europe who has the ear of these bankers there can alert them to this. Japan's FOREX reserves are shooting up because...THEY ARE HOLDING LOTS OF EUROS. Got that? See how this works now? It has been obvious to me for the last year that Japan has been buying euros because the yen has fallen with the dollar and is the only major industrial nation that has seen its currency fall faster than the dollar against the euro and this means...ta...da...Japan is deliberately buying euros! For trade advantages, of course. So why isn't Europe yelling?

The yen has stopped dropping against the dollar because of the Chinese. They know how this machine works and they are single-handedly forcing up the yen in value so the yen can't undersell them in America. The Europeans could hold meetings about all this. I can lead the discussion if they want. They can yell at me and I will put up hundreds of charts showing how this works. Then they can pay me a trillion euros in gratitude.

But they won't because the politics of empire means not admitting weaknesses like this. They think they can bully China like they did for 200 years. But those days are dead and gone. The New China is not weak at all. And it is smart, to boot. Another thing Europeans and Americans refuse to understand.

From Market Watch:

Should you be investing more overseas? That's a big question for America's 95 million Main Street investors. Same goes for professional investors with their retirement money in "Lazy Portfolios," diversified portfolios of index funds. It may be the biggest challenge facing all investors today.

The short answer: Yes. At least a strong "maybe." Why? Two reasons:

First, the world's market capitalization is rapidly shifting outside the U.S. Morgan Stanley, Bloomberg, Dow Jones and others report that as recently as 1970 the U.S. owned 67% of the world's market cap. A decade ago it was down to just 44%. Today the U.S. is about 40%. Yes, we're growing. But the rest of the world's growing faster.

Second reason: The returns in overseas markets are outperforming the U.S., as you'll see below.

And who has the hottest markets? Japan? Europe? Or is it...CHINA? Of course, even the dogs barking in Europe know it is China. The Japanese keep their stocks depressed because it is all part of their 'depress at home while invading all foreign markets' plans. Europe and the US have gone up but not at all like China. China is shooting to the moon. And of course, will crash. But unlike Japan's isolated market that has kept out foreigners, China is open to foreigners and when it falls, all the world will go into a grand recession. The US and Europe needs China and at the same time, they fear this dragon for unlike Japan, it has teeth. Namely, nuclear bombs and a military that is pretty big. And China is triangulating with the oil pumping kings in the Middle East. And Russia. Which is why Europe is freaking out. They don't want this at all.

From Finance Week:

A logic to the FTSE revival

The continued growth of corporate profit rates explains why FTSE share prices keep rising, defying the gravity of the financial sector’s situation since mid-year. Investment in the ‘real’ economy has never performed as strongly, and the still brightening profit prospects are still being priced-in to many companies’ shares.

UK companies have long been ranked among the world’s most profitable, though the US and Finland slipped ahead of it on service sector profitability in the early 2000s, when manufacturing dropped just below the world’s top 10. The improved latest figures, sharply up from a return of 12% in 1999 (the lowest since 1994), have been attained despite downward pressure on trade-exposed sectors’ profitability from the strengthening exchange rate.

England is enjoying a financial fall foilage event. Just like the trees on my mountain are the most beautiful right before the vicious blizzards of winter blow in, so it is here: England was #1 just 100 years ago and was the top 3 just 50 years ago but is now not even in the top ten. The US will gradually fall down this same scale if we are stupid. The ability to buy things in England are declining. Disposable income has dropped 2% last year and once the housing boom fades, there will be an overhang of debts on top of all this. England has the most per capita debt than any other imperial entity on earth. So this 'profitability' is built on the edge of an ocean, of sand. It will disappear when the tide turns and the waves rush back in. England's power was from its shipping and what happened there?

No more ships being built, they are being built in China, Korea and Japan.

From CNN:

The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country's chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.

"Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it," Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference.
*snip*
And in many instances, foreclosures can create bigger losses for investors. "[E]ffective restructuring can preserve credit support [and] reduce credit losses," Bair told the investor conference.

If servicers acted on Bair's suggestion verbatim, "you'd likely have a backlash, particularly from your senior investors," said Larry Litton, president of Litton Loan Servicing, which has been proactive about contacting borrowers before their rates reset and modifying their loans in instances where a rate reset would make the home unaffordable for them.

Want to see world financing collapse for the next 20 years? This is how. The US has decided to collectively bid up the asset value of houses and stocks via cheap loans with a fast turn-over rate. Anything that interferes with this causes all things to fail. Namely, right now, the big houses are takinga huge hit from ongoing mortgage failures. But if ALL the mortgages are set at 'teaser' rates, this means a TOTAL COLLAPSE in value of all those CDO's and the bond market will be worth half of the rate of inflation or less. This is pure insanity. There are still many trillions in dollars of CDO's floating out there that have some value due to the future higher rates. No one wanted AAA bonds two years ago because the rate of return was too low. Will anyone want BBB bonds with even lower rates of return?

Of course not! I don't see this happening. Also, if everyone gets 'free' money, everyone will want 'free' money all the time and this is the basis of Christianity and Islam: 0% interest rates! The history of the world's banking system is this battle between people wanting free money and people demanding some return on risk. Look at Japan! Are they accurately pricing risk or are they giving away money that is being carried off to Europe and America to be used for speculation?

From CNN Money:

Joseph Mason, an associate professor of finance at Drexel University and a senior fellow at Wharton, argues in a research paper released Wednesday that proposed remedies could actually make things worse and even that troubled borrowers have gotten some benefit from their loans.

"It's tough to find the harm," said Mason.

Many subprime borrowers got their homes at payment levels that were as cheap or cheaper than renting, Mason said. And if they had equity, they had the option of cashing it out to pay for other things that they otherwise couldn't afford to do.

And while foreclosure is not easy for any homeowner and can damage their credit long-term, their credit was bad to begin with, he said.

He is right. Preventing foreclosures on deals that were rotten to the core from day one is bad. Or rather, one should have banking laws that forbid this sort of tragic and stupid stuff. Say, Sarbanes-Oxley type of laws. Of course, these laws were repealed or defanged right before this fatal bloom in house deals that are now wilting so badly. The army of people who ran themselves into debt now must pay the piper. The bankers and lenders who bribed Congress to get rid of good laws and regulations will now suffer the consequences. If they don't, the whole system will collapse. Because way behind all of this is the legendary savers: the basis of all banking. It isn't just lending, one has to have savers somewhere. Or the system spins out of control since the tendency is to drive up debts to bankruptcy.

The controls preventing this are supposed to be interest rates: they have to be high enough to attract 10% of the money in banks. In other words, if a bank loans more and more money but doesn't attract any borrowers, it goes bankrupt if even a few borrowers default. The 10% savings part is to protect the bank from a 10% default rate. If the banks are cautious, they will have a lending default rate of only 1% or less. But when they go nuts and give loans to four out of five applicants and ask for no proof of income, then you get the mess we are in!

From CNN Money:

Six of the nation's 10 biggest cities face price declines of 1 percent or more with Phoenix, at a 17.8 percent loss, undergoing the worst reversal. The San Diego area will suffer through a 10.9 percent fall, Los Angeles (down 10.6 percent), New York, (down 5.3 percent), San Jose, (down 4.4 percent) and Philadelphia (down 3.1 percent) will also fall.

Among smaller cities, the biggest price declines will be in Saginaw, Mich., where the drop is forecasted at a numbing 31.8 percent. Other devastated markets will be in Punta Gorda, Fla. (down 28.8 percent), Merced, Calif (down 26.5 percent) and Santa Barbara, Calif. (down 25.9 percent).

Stocks are supposed to be rising due to the idea that the housing crunch which is worsening by the hour, is not all that bad. And the debt crunch which is worsening, not getting better, doesn't matter. And that the fix to all this is to force China to ignore banking's innermost rules and to thus, change the value of the yuan to suit our purposes. Which is to go crazy spending money like mad all over the place without paying attention to economic reality. We are all desperate to keep the party going and hope the Chinese dragon will give us a gift like Bernanke did this last month when he dropped interest rates and set the stock market soaring instantly.

And the European banks handing out nearly half a trillion dollars in free money or the Fed accepting crummy CDO's as collateral on super-cheap loans to banks or forcing Freddie Mae to take on $20 billion in bad loans from dying mortgage brokerages! The bail out is making things worse. And China knows this. They know they will be blamed for all this. But they don't care in the end. If Japan and the West go into a Great Depression of their own making, China will the the invading power, not Japan, not Germany. Not the US.

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Comments

[Jean]

Elaine,

One thing I do not get, if the Japanese are giving out so much in cheap loans, i.e. others are buying their currency to invest elsewhere at higher rates, wouldn't that push up the value of the Yen? This would increase demand of Yen?

[tutterfrut]

Jean,

They don't buy Yen. They borrow Yen, which they sell for buying other high yielding currencies.
If suddenly their high yield currency investments risk to turn sour or they have to repay their borrowed yen because of whatever reason, only THEN they have to buy Yen. In moments of carry trade unwinding you see immediate reaction in the value of the Yen, because all of a sudden they all start buying Yen, to repay the sold Yens they have borrowed.

[jean]

OK, I see the borrowing versus lending, but isn't borrowing still increasing demand for YEN? If everyone in the world knew about the carry trade, they would rush off to Japan and try to borrow at .5%. This would place the Yen in big demand, and raise it, wouldn't it? (Unless Japan printed unlimited currency)

[Elaine Meinel Supkis]

It would increase the value EXCEPT the interest rate on yen at home in Japan is very low. The only people on earth wanting to raise the value of the yen is someone who is competing with Japan for export markets. The export markets are the Holy Cow and Holy Grail in this monetary game. They will slit throats to gain market share. And China ate into Japan's market share by keeping their yuan cheap and letting it only creep upwards. This is why China has by far and away, the world's biggest FOREX reserves.

[tutterfrut]

Jean,

Everyone in the (investment)world knows the carry trade and yes it IS massive. But big demand for borrowing Yen to immediately exchange it in another currency does not inflate the Yen but gives rather downward pressure on the currency that nobody wants to hold longer than a click on a keyboard, because of its ridiculous low artificial interest rate and suppression of its possible intrinsic value by all vested interests and powers in play.

[Teddy]

Jean, the Bank of Japan creates yen out of thin air to lend to foreigners, especially hedge funds. So the foreigners accept that money that is loaned at 1% or less back to the nation they want to invest in. If it's in the US for example, the most common destination, they have to sell those yen they just borrowed to buy US dollars to make their investment. This depresses the yen and supports the US dollar. Now the Bank of Japan has to do something about all those yen they just created out of thin air, otherwise the yen will find their way back to Japan and cause inflation, so they float debt instruments like bonds to the Japanese citizenry to drain or sterilize all those newly created excess yen floating around. This is one of the reasons that Japanese debt to GDP ratio is rising exponentially. A lot of misinformed economists or those not wanting the public to know what's going on will look at that ratio and say Japan is in a depression. Yes, it's a depression in national consumption, but a boom in export growth. If there ever was a panic because the Bank of Japan raised interest rates at home to fight inflation, then you could see the reverse of the above described carry trade with the yen exploding up in value against the dollar causing a financial crisis because the hedge funds and other borrowers would not be able to pay back the loan in yen.

[DeVaul]

Wow, that's the best explanation of how the yen carry trade works that I have ever read, and I've read quite a few.

I always wondered what happened to the yen once it was exchanged for the other currency. It seemed to me like it would go back to Japan, just like all the economic gurus are saying will happen to our dollar IOU's once other governments stop "holding" them.

So, the Japanese government is buying and holding these newly created yen. Is that what is going on?

You said the public were being offered bonds, but I have read that Japanese are buying other currencies to get a better rate of return. Do they really buy these yen bonds that the Central Bank creates?

Is the real culprit -- the inflation sink for these yen -- is it the Japanese government itself. Is that the deal?

[Teddy]

DeVaul, in lieu of buying their domestic bonds with miniscule interest rates, the Japanese citizenry are also making direct investments in foreign countries by selling their savings in yen and buying the foreign currency to buy foreign debt instruments and this is a Johnny-come-lately event and a subset of the main and most stable form of the carry trade described above. They are assuming extreme risk if the carry trade ever reverses and would also represent a main force in the panic reversal.

[jean]

Thanks all for your explanations, it's much clearer now, and yes Teddy, that's a great explanation of how the carry trade works. So the low interest rate keeps the Yen low, which is why their export biz is so great, etc., etc.,

[DeVaul]

Ok, I understand that. I was wanting to know who was the main soaker-upper of all these yen coming back to Japan all these years.

Was it the citizens until recently before they starting betting in the forex markets? Or has it been the government mainly from the beginning?

I suspect the government because of their connections to the criminals running this system, but I honestly do not know. Or maybe the citizens were bamboozled and now realize it and are trying to get out.

Do you know which holds the most of these yen from the carry trade? That is, the citizens or the government? Just curious.

[Elaine Meinel Supkis]

TOYOTA TOYOTA TOYOTA!

Now you know the name of one of the 'soaker uppers' of any returning yen. Which are used to build more factories.. IN AMERICA.

The weird money flow is very complex. And not easily seen! Even more: China and Japan buy lots and lots and oodles of US bonds and this is how they get rid of more of this loose change, to the tune of, between both of them, one trillion dollars worth.

And then there is their FOREX reserves that explode with money at the rate of $100 billion a year for Japan in the last 8 years and China, over $300 billion a year in the last 5 years. NEITHER NATION HAS THIS MUCH IN TRADE PROFITS! This is pure speculation currency games being held by the biggest two banks on earth.

[barbara hazleton]

What else might cause the carry trade to unwind other than China waiting until after the Olympics ? Would it be war with Iran? Any other factors?

[Elaine Meinel Supkis]

The carry trade had a momentary hesitation due to the value of the yen rising vis a vis the dollar. Now it is back in force, the pre-July status quo is running...temporarily.

This is going to continue until next year but it can collapse due to anything since it is very fragile and quite expensive. Right now, the bank of Japan struggles to pretend there is no inflation. I track the rising tsunami of inflation there. The ONLY thing going down are wages there which leads me to think, the lives of the Japanese people are visibly deteriorating as this continues.

[mckinnemon]

Japan has a shrinking population. I think a lot of the economic numbers may not reflect this. Are there standard world wide economic benchmarks? I had a right-winger lecturing a group of use on: "how bad it was during the Carter years"..I casually noted "correct, but did you know what todays numbers would be if the 70's benchmarks were used..." Just a standard Fox newshound ;-)

[mckinnemon]

Japan has a shrinking population. I think a lot of the economic numbers may not reflect this. Are there standard world wide economic benchmarks? I had a right-winger lecturing a group of use on: "how bad it was during the Carter years"..I casually noted "correct, but did you know what todays numbers would be if the 70's benchmarks were used..." Just a standard Fox newshound ;-)

[Elaine Meinel Supkis]

Carter killed inflation. No one has ever forgiven him for that deed.

[John]

In these days of sub-prime loans and the housing market in such a downturn, many people are in danger of losing their homes. Many lenders issued adjustable loans that re-adjust periodically and many people may not have been aware of how much their payments could go up. Some of these people may now be in danger of foreclosure if they're unable to keep up with the payment increases.
http://www.thejohnbeck.tv