In this video, I talk with author and economic analyst John Sneisen about the concerning revelations out of Michigan as Flagstar Bank puts out zero-down mortgages out of absolute desperation.
We've seen the return of collateralized debt obligations, mortgage backed securities and credit default swaps to exhaust. Half of the top 50 markets in the United States are overvalued and this move by Flagstar Bank in Michigan is destructive to say the least.
These people are vultures. Flagstar will even cover your closing costs in an attempt to convince people to go into debt and risk everything. Those who take part will need to make an annual income of at least $35,000 to $62,000 a year.
Your house is not an asset until you successfully sell it. This piling up of manipulation and derivatives/debt will end with the inevitable. We hope the people of Detroit learned from 2007, but the banks are still there to try and take advantage of people.
The fundamentals are off the table due to the level of manipulation, so we don't know exactly when it will happen, but we know it will indeed happen eventually and we are seeing a lot of signs of a looming collapse today, so it's best to be over-prepared. It's far safer than being under-prepared.
