Real Estate investor Fabian Calvo says, “Trust me; there are enough troubled assets for the Fed to be buying much more than $40 billion a month- It’s all about manipulation.” Calvo says, “In essence, they are creating another bubble.  I believe in 24 to 48 months, they are going to pull the rug out again, and we’ll see prices go down when rates go up.” Calvo predicts, “The Fed balance sheet will likely be $5 trillion in toxic assets by the end of 2014.” Calvo thinks what is going on behind the scenes will one day come to light, and it won’t be pretty. Calvo thinks the mortgage rate forecast will eventually go up, but the Fed will suppress rates as long as it can. Calvo says, “It’s kind of like Enron. When it falls apart, then you realize what level of corruption and deceit was really taking place. . . . It’s a trillion times worse than Enron.” Join Greg Hunter as he goes One-on-One with Fabian Calvo.


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  1. The government and Fed are about 90% of the housing market for  loans.  They are 97% of student loans.  Student loans are a complete FUBAR with 30% delinquent more than 90% (and those are not the ones  on deferral basis)   The Feds buying MBS at a trillion dollar rate. The  government is back into the 3% down and subprime lending market (according to my mortgage brokerage friends). This kiting of the housing values will drop like a rock when rates rise and prices drop, leaving the unwary trapped in another series of underwater loans.
     A large percentage, sometimes 10% and even 40-50%, of the housing market being bought by investors, speculators and flippers, will crush this market once again.  This is another bubble forming. Prices are up 25-50% or more in the last year or so. The unwary will jump in at the top.  The wary will be exiting the market at the same time, having made their money.
    This time the government will own the mortgage market which means the stink will be on them.   But they will not play nice with the delinquent borrowers this time.   It’s not like B of A or WFB giving a borrower an Obama mortgage mulligan, taking a write down of their obligations. 
    The Fed will come after the borrower.  Students loans are not,  by and large, dischargeable through bankruptcy. In 50% plus of the time, mom and dad are cosigning on the student loans. They are now part of the debt and the loan holder, the government, will suspend SS and other government payments and holdmom’s  tax refunds to pay the kiddie’s debt. 
    Many of these loans are to mom and dad going back to school,  cosigned by grandma and grandpa.  Now we have the government wrapping 3 generations into the tender clutches of Uncle Sam in both student loans and home mortgages.  This bodes very badly for at least a couple of generations of borrowers. 
    This is becoming a real issue of debt slavery.  There are not enough work farms, debtor prisons and jail cells to house these folks. I may exaggerate about the jail time–but maybe not. You never want to owe a government anything that goes over the time for repayment.
     Who’s to say what our government has in store for us in the next 5 years. Being in debt to Uncle Sam , whether a lien from taxes or loans, is still a bad place to be in. Is this a conspiracy to further indebt the American borrower?  Probably.
     Take care, watch out for seductive loan offers and read the fine print.  As a former banker, I assure you that the day after you sign the loan docs is the day you realize that it might not have been the best thing to do.  Sign in haste; repent at your leisure.

    • “There are not enough work farms, debtor prisons and jail cells to house these folks. I may exaggerate about the jail time–but maybe not.”
      Maybe building more of those things is their idea of a jobs program?
      Good advice on not being indebted to Uncle Sugar.  Could end up doing slave labor somewhere that’s not very nice.

    • It’s pretty sad that our government is willing to go after  individuals but not corruptions. Take Lance Armstrong as an example.  The guy is complete fraud but so are the bankers.  Why doesn’t the Justice Department go after the bankers.  The S&L scandal produced over 1000 jail terms. Not one banker has been put to jail since the Oct 2008 crash.

    • It is just like a Ponzi scheme! The debts will continue to rise due to fractional reserves. Also, a lot of indebted people should do something more productive during their free times, like selling goods for example. I owe 195.05$ to someone because I borrowed that much to buy silver last year. Yet, I’m having hard time to repay him so what I do is sell some soft drinks outside. At least he didn’t charge me interest!

    • That’s true! I’m kinda broke because last year, I borrowed 195.05$ from someone to buy silver and yet, I’m still having trouble to repay him today. At least there aren’t any interest!

  2. I have the tendency to bash people but Fabian is another fraud.  When you sell crap like this then you deserve to get bashed.  I will admit that he isn’t all bad and I do agree with some things Fabian has said in the past.  However, if you agree that the lending standards of the big banks were the part of the problem of the housing bust, then how can you sell a program that encourages no money, no credit and no risk.  I will let others decide about Fabian’s credibility.  IMO, he is another fraud and hypocrite.


    • @duckvision – thanks for taking the time to post.  You’re moderately diplomatic, by the way ;-)  There’s a big difference between bashing and juxtaposing facts.  You’re mostly doing the latter. 
      I’ve only seen a couple of videos with Mr. Calvo.  I don’t have the context to have a firm view about him one way or another.  But thanks for passing the salt – I’ll be taking more than a pinch going forward when examining Mr. Calvo’s arguments.

      Do you happen to know what are the typical notes he’s buying and selling? in that video above he’s talking about a HUD property. There’s a considerable amount of competition for that paper and even hedge funds are flipping stuff like that. In fact, the market has enough players now that I find it hard to believe this guy is doing as much dollar volume he claims.

      Ah well… Like you, I find myself in agreement with some of his macro analysis. But there’s something off here …

    • Flying Wombat-First off, thank you for being open minded.  I tend to get a lot of negative feedback when I relay this info about some of these people (Greg Mannarino).  Personally, I don’t understand much of what Fabian is doing.  I don’t care what he is doing.  What I do care about is scamming his subscribers and selling fraud.  Just on the surface and looking into his product line, it looks cheesy and low-grade.  Fabian has talked endlessly about the big banks and the fraud that they have created.  The housing bubble is one huge example of the credit expansion that caused this mess to happen.  So with that said, how in the hell can you take this guy seriously about extended a program about no credit, no risk, no money to produce anything positive?  It just reeks of a cheap used car tactic to sell a bullshit product.  He is flipping these houses without actually seeing them.  He is finding a buyer soon after he has “purchased” the property.  This is with no money, no credit, and no risk involved.  Yeah right!    He is selling this list of clients that he has masterfully produced by his inside knowledge of the market.  The guy does videos from his garage.  He has zero credentials or credibility.  He is another youtube wanna be star (Greg Mannarino).  Fabian is saying he has made hundreds of thousands of dollars with this system.  He is also created a illusion that if you buy this product for 197 bucks (six cd set) you could have the opportunity to make up to a million dollars in the first year.  He is also saying that these videos are “valued” at a thousand dollars and it could be yours for just 197 bucks plus shipping.  The bottom line is that if you are stupid enough to buy this line, then you deserve to get taken.  I have no sympathy for you.  As a reminder, just do a little research on these people and you will find out the good and bad.  This goes both ways.  I have had a negative outlook on a topic or person and I do a little research and I found out that my perception was way off base.  I just provided some info, it’s up to you to decide if someone is credible or not. 

    • Flying Wombat- Here is another guy that needs to come clean about what company he was representing.

      Wealth Masters International (“WMI”), a global financial services and education company based in Houston, Texas.[10][11] Norwegian authorities have suspended WMI’s sales, finding it to be an illegal pyramid scheme. Root is named in the finding.[12] Root has partnered with Kip Herriage of WMI and Gerald Celente to create the “Crashproof Prosperity Investment Newsletter

    • “He is flipping these houses without actually seeing them.”
      Perhaps he prefers to think that he is “re-hypothecating these properties?   ;-)

    • I guess that is one way to justify his actions with this BS line of products he is selling.  It’s a new form of alchemy in the real estate market.  It’s making a image of ownership without actually seeing or buying the property.  Just another paper illusion to produce another bubble. Wow, what a respectable way to make a living.  I’m sure he will be in this kind of business for decades and decades.  Actually, he admits that this will only be around for 24-48 months in his opinion.  Fabian is making a huge run for biggest hypocrite on youtube.  Greg Mannarino is still a solid first place, IMO but Fabian is closing the gap.

    • @duckvision:  That’s embarrassing for Celente.   I would normally give him quite a bit of leeway — and the benefit of the doubt.  But after looking at how widespread his endorsement(s) cast, with links all over the internet and even what appears to be a co-branded newsletter operation, I find it hard to cut him slack on this issue.  

      The whole Wealth Masters philosophy of personal empowerment is nothing more than a repackaging of personal empowerment / personal responsibility perspectives as old as man.  It also happens to be a natural fit with Celente’s disposition.  Some of Celente’s words in that video speak to this and are pretty revealing.  Starting at the 2:25 minute mark:

      “Because as I see what Wealth Masters does, it teaches people to move forward in a manner that is knowledge-based, as well as of course your instinct.  So I provide a level of knowledge that’s not accessible in many other areas – trend knowledge.  So, to me it’s a perfect fit because in order for these people to — in order for wealth masters (appears to be speaking generically about empowered people and not about the organization itself) to achieve their goals — and the people in the (Wealth Masters) community — they have to move forward with the best knowledge that they have so that when the future comes they are not taken by surprise.  <u> I would recommend it for the self empowering part of it. … <b>And again, I don’t know enough about the details beyond that</b>.  But any organization that doesn’t have a guru and that the people are their own gurus, that’s good for me.   My work is to empower people as well. …” </u>

      If he didn’t know enough about the details of the organization beyond that, that’s no excuse.  One would think Celente is smart enough to recognize that multi-level marketing is not a business model capable of generalization across society, and that those that initiate participation near the middle to the end of existing marketing levels usually get burned. 

      We probably share much of the same view on Mannarino.  My Oct. 5th SD post in response to one of his hyperbolic crash calls pretty much speaks for itself, especially since we now have the benefit of 20/20 hindsight.  I know he read my comment because he started to move more in the direction of being a tiny bit more professional in tone (long way to go on that score), and he began to incorporate the terminology I used — “fast crash” vs. “slow burn.”  Those are terms — and their associated descriptive analytical framework — coined by Catherine Austin Fitts about a decade ago if memory serves and I’m pretty sure Mannarino had never used them prior to my post.  

      There’s hope for Mannarino, and there certainly are people that have woken up strictly based on listening to him.  It’s hard to knock that.  But in the grand scheme of things, when it comes to working towards a reformation of some sort for our economic system, our challenge is not with reaching fence sitters that a Mannarino-style voice can reach.  Those people are the low hanging fruit.  It’s the more mainstream, “average joe” and mainstream intellectuals that have to come to understand what our ponzi fiat system is really about.  Mannarino’s style is not ideally suited to reach that much larger population.  In fact, he’s easily typecasted and dismissed by these people.  Reaching them will not be accomplished by a Mannarino.
      Nice chatting with you.

    • hmm…  the bold and underline html tags didn’t work in my reply.  Odd.  I’m just going to leave the above as is rather than risk breaking the hyperlinks, which did work.

    • Those are the kind of greedy people that causes the economic problems.
      “…no money, no credit and no risk.”
      No risk? That is one of the worst financial lie that I’ve heard!

    • Yeah it’s really a bad sales pitch with the no money, no risk and no credit.  I put Fabian in the con-artist list.  He isn’t a guy I would ever trust or believe.  He has no credibility. 

  3. This video is almost embarrassing to watch and link.  If you want to waste 8 minutes of your life, then be my guest.  Amazing the crap people sell.  More amazing that people might buy this crap. 

    He is so wealthy but he needs you to buy his 6 disk set of videos that was recorded from his garage. Hurry and buy it and then you will get his special “confidential insiders” disc free of charge. What a freaking joke!

  4. There is no way for us to effectively short the real estate market. Actually short the prices of real estate itself. Coincidence?
    I’d love to short the heck out of that (I’m in Europe and my country saw a 19% drop in 5 years, and accelerating). I am more sure that house prices will come down, than that silver will go up.
    I just pray that the peak in silver may coincide with  (or preceed) a bottom in real estate. Preferably in a country where vineyards are affordable to begin with, and crops do well.

  5. Global reset? Beats me Ed.  I picture one of two scenarios.  We slough off the entire debt structure on a world wide basis. Simplistic as it might seem, if the system reboots, we start afresh.  I have no idea of this would work but many countries, a few hundred overall, have done this is the past 500 years and they survived.  Of course, most forgot the lesson of history and within a few decades started back down the same path.  Lessons hard learned still don’t seem to stick
    On the other side is the reset like the Roman empire.  The hard slog out of the dark ages lasted about 1,000 years.  Not that every part of the world was trapped in this era, The middle and far east and China did well.  The bubonic plague, ignorance, the various religions trapping people in their thrall; these did hold us back a bit.  40 generations went by before we started climbing back.  Personally, I’d side with maybe 10 years of hard times.  If the reset takes this long, I think we can work with that.  A 50 to 100 year time period  is a harsh set back.
    We’ve seen large countries and even a continent come back from utter destruction—Japan and Germany, the Soviet Union, move back into the company of nations pretty quickly.  So I have hope the time line will be shorter than longer.

    • @AGXIIK:  What we do know is that the powers that be are actually openly talking about global reset.  They’re reasonably open about the rough outline of how they hope things will develop.  I base this on my reading policy documents and papers out of organizations like the IMF, think tanks and the media in general.  In their ideal world, after a few more years of (mostly Western) nations dorking around with financial repression, currency debasement and the “benefit” that the stalling time of a couple of years provisions when it comes to further wealth consolidation at the top (primarily actualized by the ongoing process of “socializing” the banking and shadow banking sectors’ losses) and desensitization across the masses facing a lower standard of living, they’ll introduce a new basket-based reserve currency system with a gold element, likely hosted and/or modeled on the IMF’s SDR system.  Toss on top of that a shift towards a cashless society, where everything other than barter is tracked.

      This is their wet dream vision.

      A reset done right could be a healthy thing.  For example, if the global community elected to devalue immediately against gold and didn’t even necessarily install a new modified gold standard, that would still be a heck of a lot better than current public policy lunacy.  But the reset the powers that be have in mind will not be executed with the idea of spreading the most benefits to the most people.  Sadly, the Western oligarchy couldn’t give a rat’s arse about the masses.   

    • Most people think that we are still continuing to develop because our technology is getting better. They think about the future with flying cars, transparent televisions, etc. Yet, our economy is going down, inflation is rising, our debt is getting bigger, etc, so how can we see our future brightly?

  6. I bought at the low of 2011 and am happy with the purchase. (under 100k) The house has appreciated nearly 50% which I know is a crock of garbage. The wife and I are going to refinance to get rid of the FHA loan and the mortgage insurance. I plan on selling at the top but even if I kept my house and never sold it, realizing I could actually lose value in the next few years, I am pretty happy with the mortgage that will be under $600 when the refinance is complete.

    I feel bad for everyone else that got screwed from easy money.

    • I agree.  He will get caught with all of these depressed properties with nobody to sell them too.  Fabian is a total idiot trying to scam people with this product line.  i hope people wake up to these frauds. 

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