Fabian Calvo: Housing Inventory Suppressed On Purpose and Shadow Stimulus

Fabian Calvo buys and sells $100 million worth of real estate and distressed debt a year and says, “Over 20 million houses, on any given night in America, are completely sitting vacant.” According to Calvo, the economy is being helped by “shadow stimulus.” It’s coming from millions of underwater homeowners who have stopped making mortgage payments. Calvo also says banks are not foreclosing “. . . because the inventory has been suppressed on purpose by big players.” Calvo says, “Money that would have been otherwise allocated towards a housing payment is going into consumer spending.” Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Fabian Calvo.

Comments

  1. The Dog wants in.

  2. Hell I’ve been saying this for the past two years and people just laugh at me. Foreclousures are at an all time high off fourteen months to do the process and homes have been sitting vacant for just as long or longer with no indication that they are for sale which they aren’t. We aint seen nothing yet folks in the Housing Market and when these homes hit the market, Your Silver is Going To Buy You A House, CHEAP. Lol
    P.S. I’m in the Real Estate Market
    20 Million Homes Sitting Vacant.

    • Great insight Charlie! We are on the same page on that, silver will be peaking right around the time when real estate is at rock bottom. I want a place with river frontage!

    • LMAO I’ll Sell You One.

    • Exactly! That’s why when the SHTF, you can buy a house that was worth 500,000$ for 50 ounces of silver because silver will become more rare due to the growing monetary demands and due to a lot of abandoned houses. 

  3. The TBTJ banks are just waiting for the Bernanke to take a few million of the homes they have already forclosed on off their books. Once the Fed has those on their books, then they will move in and forclose on these homes. That was kind of a Low Blow, saying that the ones that aren’t paying their morgages are the ones fighting in Wal-Mart. He can’t know that!

  4. Hedge funds, private investors and foreign money is buying 100, 500,1,000 or more homes from a TBTF bank, often in a tranche that goes for more than the homes would go for if sold  individually. This moves homes off the bank’s books which is probably a good thing since it gets the inventory back into the hands of people who will put these homes to productive purposes.  People get out from under a mortgage and can start renting.  The properties are improved and potentially resold in a later year.  More and more Money will flow to this investment.   Whether one agrees with this or not, ZIRP created many of these problems. Misplaced buying built the empire of debt.   I think that at least these investors are doing something with their money instead of placing it into some sort of mal investment, whatever that might be.
    PS I do not know what will happen when the Fed starts QE 4 in earnest through purchases of $80 billion in MBS from these TBTF banks but once some poor schlub rotates into the belly of that beast rest assure the debtor will find this to be a nasty furtherance of their problems with the mortgage holder. The Fed has long arms and will strangle anyone who tried to stray from this variant of the federal plantation.
    Any consumer confidence boost is a result of more credit card spending that can’t be afforded coupled with the debt release from non=payment of the mortgage. That non payment along with property taxes, maintenance, HOA fees and insurance means the present occupant is living in a home for little more than the cost of utilities. This frees up as much as $30,000 in cash flow that is spent on consumables. The recent bounce is largely a result of this specific system, not increased income and job growth.

    • “Any consumer confidence boost is a result of more credit card spending that can’t be afforded coupled with the debt release from non=payment of the mortgage.”

      This brings up an interesting thought.  The Fed and the Gov routinely create better numbers on unemployment, inflation, and probably much else in an effort to make themselves and their policies look better but perhaps also to lull the sheeple a little.  So… what happens when the honest truth comes into the mainstream American consciousness?  My bet is that it will be the mother of ALL mental depressions… and that disillusionment will be FAR worse than simply telling us the truth as we go along.  Truth WILL out, as they say, and when it does it will be horrendous for many of our fellow citizens.  No surprise for us, though.
       

    • And it is feeding China’s coffers instead of the US. People swarm to buy Chinese made junk that will break in a year, or they have to get the latest I phone that is assembled in China by what amounts to slave labor.
       
      Until the US population wakes up and starts buying American the economy doesn’t stand a snowballs chance in hell of recovering. And corporations that offshore production need to be penalized with tariffs on the incoming product to make the price equivalent to what it would be if made here. Yes prices will rise but do people really need all that crap? I am an anti-consumer, I buy very little and what I do get us US made if I can find it.
       
      I see the fed foreclosing on a lot of people and we will have a sudden rise in need of apartments. Agenda 21 kicks in and people will be forced into tiny cramped apartments in big cities while these developments get razed back to nature.

    • @Ed_B … “So… what happens when the honest truth comes into the mainstream American consciousness? My bet is that it will be the mother of ALL mental depressions”

      Depression and a sense of desperation stems from belief that there are no choices that can improve one’s condition. This need not be the case if we begin planning now to supply an alternative hard currency based on copper that can command a ratio in silver and then gold exchange. More than that, we need to re-organize the original political structure that empowered The People to direct government’s constraint within their Constitutional limits.

    • Pat… I agree with your sentiments and would support what you suggest.  Recent history, however, shows that whenever the politicians can choose between two possible alternatives, they seem to make a habit of choosing the least useful one.  Perhaps this is due to them making political decisions when sound economic decisions are needed?  I am not saying that our situation cannot be improved, only that it is unlikely due to the fact that a lot of the same people who created this mess are also in charge of cleaning it up.  I am reminded of Albert Einstein’s quote about, “We cannot solve our problems with the same thinking we used when we created them” and I see no signs of fresh thinking in DC these days.
       

    • As more and more fiat dollars flow in the housing market, there will be more and more losses. QE4 will temporary raise the prices of houses but not for long as there are way too many abandoned houses. 

  5. not bad information from a slumlord.  it’s too bad we can’t find more people who understand these markets AND have integrity.

    • Now THAT is reaching.  Getting the experience to really know these markets is likely to grind off all of the integrity anyone may have when they start in the business of selling things.  Our own Charlie excepted, of course.  ;-)
       

    • Ed, I hear you making my point and taking it further.  So you’re saying that being involved in business precludes integrity for nearly anyone.  Apparently, it’s not reaching.  But thanks for the reply.

    • Slumlord suggests he buys condemned properties (or should be condemned) and rents them out. Sounds more like he just buys and sells.

    • “So you’re saying that being involved in business precludes integrity for nearly anyone.”

      No, what I am saying is that a corrupt business WILL corrupt those who enter into it, even if they have integrity when they enter into it and no knowledge of the existing corruption.  While corruption can be in your face obvious, it is much more often subtle and exerts its corrupting influence via small increments, each of which seems not that bad but in aggregate has terrible effect upon the integrity of those whom it touches.  This is similar to those who come into congress for the 1st time, filled with fresh ideas to improve things and the vitality to do it, only to discover that the system there will prevent that and that to “get along one MUST go along”.  As with everything else in life, there will be exceptions to this but I suggest that they are rare events.

      Thank you for your comment as well.  I thought that my comment was clear but from your question I can now see that it was not.  I very much appreciate clarity.  :-)

    • Yes, thanks for the clarification, Ed.  I quite agree. 

      And to RRG, I will say that with respect to slumlording, an individual always has choices.  To fix or not to fix things that go wrong for those that rent from them.  I live in a town with a bad slumlord problem.  Many just buy tons of houses for cash and don’t put a single cent into them, save to clean them up so people will rent.  Wash, rinse, repeat.  With a college market, and one of the greatest disparities of wealth in the entire country, it’s the perfect place for it. 

      Also people can be slumlords for numerous reasons.  They could be irresponsible, lazy, greedy, or just plain selfish and cruel.  I don’t think it’s simply a matter of buying and renting condemned properties.  Again, the difference there is integrity.

      Thanks for your comments.

    • @Edward London: My point wasn’t whether or not he is some sort of slumlord. All I really know of the man is in the first sentance of the story, which is that he buys and sells. The Bio given doesn’t mention rentinging his properties. He may well rent them as well. If he does it also doesn’t give any indication of the condition of his properties. I simply didn’t want to disparge his character when I frankly know nothing about him other than previously stated and he makes videos.

    • We all understand these kinds of markets which is why don’t invest in stocks, bonds, houses, etc. We do sometimes but that’s very rare. Some of us has a house for living purposes and not for investments.

  6. Mary B You hit the nail on the head about Agenda 21.
    About 37 years ago my father served a two year term as president of an international real estate organization that worked to bring current property rights issues to the forefront of the worldwide real estate industry.
    He found the UN and its spawn, Agenda 21, bringing about a vote in the UN to reduce and eventually eliminate private property rights. Agenda 21 was designed to bring a community ownership of real estate, administered by a ruling class, with each person allocated a small apartment within a hive complex.  The environment was touted as the reason for compressing humanity in ticky tacky little boxes.  Like any scheme of this sort it was rationing of resources with the fundamental plan that control was more easily effected if humanity was in small containable spaces, cubicles and tiny apartments.
    The environment was just a ruse to beget control over large segments of humanity.  My father saw through this. He was an original Magna Cartist, the English equivalent of a Constitutionalist.   His group put such pressure on the various governmental representatives that the dawning Agenda 21 protocol was defeated. 
    But this idea never died.  It has outlived my father and his peers who fought against it in the 70′s. 
    If I was to create a plan that would naturally draw people who were desperate for any sort of housing, no matter how small or unpleasant, I would create a boom and bust in housing with low cost, badly underwritten loans.  This plan has worked for centuries, beginning in Greek times when housing was made available with low cost bonds.  It has resulted in more economic collapses that paper money.  People flock to the illusion of low cost housing that they can actually buy, no realizing that debt has cost. Traps are set to snare the unwary and the world is filled with those who think homes are great long term investments. Homes enrich bankers, government and central banking authorities, not the common man or woman
    After 20-3 million homes lose $30 trillion in value, the loans are unsustainable.  With enough time, people resort to anything to keep a roof over their heads.  The government aids and abets the systematic process of forcing people from their homes or selling the homes to a bidder who turns the homes and their occupants into rent farms. The Fed’s purchase of MBS tranches is part of this proces.  Like all sharecroppers, the people who rent will find their digs increasingly unaffordable.  Thus, once again, they are forced from their homes into even less substantial housing while their income  drops, taxes increase and job opportunities become fewer and fewer (see the consequences of Obamacare forcing millions of employees into part time jobs of less than 30 hours a month). The illusion of a home as a storehouse of wealth creates the first embeggarment. The goverment then completes the process with the inevitable financial ruin issuing from their currency debasements.
    This financial herding becomes even more commonplace with tens of millions of people forced to seek shelter in the meanest of domiciles.  This plan was conceived decades ago during my father’s tenure. He saw it for it was.  Stripping people of their property rights and opportunities.  It has taken nearly 40 years to embed the plan in this and 25 other countries including China with its housing ready to burst. Canada, US, Spain, Italy, the UK, Australian, Brazil, France are just a few of the major economies that are on the rocks with housing bubbles bursting.  Agenda 21 is a reality and if we continue on our present course, their plan will come to fruition, maybe within 15 -20 years.

    • @AGXIIK

      “When through the process of law the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.” – 1924 US Banker’s Association Magazine

      There is a corruption of the socio-political order that’s taken place which CAN be superceded if folks affirmatively return to the original jurisdictions of their State Constitutions and cease assuming legal standing as ‘citizens of the United States’.

      ” [I]n examining the form of our government, it might be correctly said that there is no such thing as a citizen of the United States … technically and abstractly there is no such thing.“ Ex parte Frank Knowles: 5 Cal. 300, at 302 (1855).

      The truth is that such Person of standing is a municipal statutory figment of Congress and assumption of it traverses the unaware under lifetime subjugation to its exclusive jurisdiction.

      Everything from legal tender paper currency, to occupation of the Oval Office by a KNOWN alien is structured on this one single point of balance.    

    • @AGXIIK: I’m glad MaryB inspired you to write this best post I have ever read on this site because it describes the crux of the problems we are intentionally being forced to experience. Agenda 21 is just the latest multi-faceted tool for enrichment and control, coming after the world’s population from all directions. The parasitic class is behind the establishment and use of the UN as a cover for the Agenda 21 plan to depopulate the planet and insure that whoever is left is under control through a contrived impoverishment and health-debilitating environment. The project continues on, using socio-economic destabilisation that creates a permanent  underclass that the equally intentionally manufactured middle class derides and/or legitimately fears becoming part of. Both of the these two social groups were created to be fed off of by those running the planet, marketing everything from cellphones to energy supplies (gas/oil/coal), any goods or services you can think of from medical procedures to funerals, food to foodstamps. The precursors to the coming control structures, the now megalithic FINANCIAL, education, medical, science, industrial, and other systems will morph into Big Brother, determining every jot and tittle of the remaining population’s lives. If the people running Agenda 21 really cared about the environment, the huge pollution problems caused by industry and the huge health problems caused by a poisoned and twisted diet, just to name two culprits, would have been put to rights. Just these two belie what our evil overlords’ true “agenda” is.

    • Exactly! That’s why we all stay away from buying houses for investment purposes. The housing bubble burst also concerns me since there are a lot of house foreclosures in my country. 

  7. DURRRRR!  Do ya think the housing market sucks?   Even living in a fairly insulated part of US and not in decaying urban plight, the home market here is zippo.   Even the low interest rates aren’t helping much.    House prices have further to fall as the balance sheets of individuals ERODE.    We haven’t seen the REAL CAPITULATION in RE yet.    That will probably be in another year or two when the Dow will be thousands less than 13000 and your silver is in triple digits.     Then you can ponder:  switch the silver into gold?  switch into battered high yielding general equities, switch into houses marked down 30-50% that no one wants…  Or just keep the silver.    None of my PM allocation will be coming back to paper cash until there is some sort of backing, or interest rates become stongly positive (LOL on that last one! not for another 5-10 years AT LEAST if there is no reset of the monetary system with a PM weighting)

    • The best moment to switch some silver for some gold is when the ratio of them is 20 ounces of silver for an ounce of gold in my opinion. The housing market is a bad place to invest in.

  8. The problem with buying  the “made in the USA” lable is there is almost nothing made in the USA anymore that people use in the home.

    • The US coins and the Federal Reserve Notes are made in the USA and the only American industry left in the USA is the Printing US Dollars industry (PUSD). :P

  9. I’m in the EU, but it’s similar here.
    My current plan with my (very limited stack) is to turn it into a property which I’ll pay off in one go. Else, should business do me good, I might use it for a deposit on a castle with land.
    I’ve done some charting of house prices expressed in kgs of silver, but it’s simply an inverse of the silver price, leverage by a factor of up to 2 for the halfing we may be looking at in housing prices over the next years, before hyperinflation really kicks in.

    I intend to monitor silver’s value against land (which I grow crops on) and real estate (cubic meters of urban housing). At first I was planning to play the gold/silver ratio for the next decade, but I am not expecting to get any proper swap moments. GSR may je fall to inner earth. If PM’s in general do their job, and people will not have money to buy properties with, and powers that be keep prices down to own as much as possible, I will scrap up a bit to my liking when silver peaks.

  10. @XC Skater: A castle, wow. Good Idea. When things start getting really crazy you will have lots of stone protection for the stray cross bow bolt or bullet. :-) Reading your post of course got the old prepper in me thinking about dreams of youth. Like building an inpregnable dwelling in the middle of nowhere. If we dream, we should dream BIG.

    • My mother told me that one of our ancestors gambled a castle away, I believe it was in a card game. There was some kind of proviso that the castle could be bought back if the payment could be conjured up. My recollection was that this applied even to future generations. The details of who/where/when are lost. It would take title insurance to a whole new level.
       

  11. Once again the Silver Doctors rip the ugly scabs from the sores that are elistism   The revolution is on and we are winning.

  12. Due to many foreclosures, the prices and the values of houses are going to drop when the US dollar collapses because there will be way too many vacant houses around the country. That’s one reason why it’s a bad idea to invest in the housing market.

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