In looking at the response to the Futures Commodity Merchant fraud provided by the CEO and president of the company I have decided to further expose just how ridge the financial system is to work against you. To do that let’s see where we really are with the housing market. This market is being highly manipulated from multiple angles and as each attempt fails they will not relent because the alternative is a purely untenable. If financial institutions are ever forced to realize the losses on mortgages and mortgage related financial vehicles some of them would burn to the ground. So where are we today with the housing crisis?

First, we have CNN on July 24, which has tuned into a propaganda machine posted the following article about housing.

http://money.cnn.com/2012/07/24/real_estate/home-values/index.htm

CNN stated “Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter.” Here is the fine print to relieve them of any reliability. “overall home prices are still down almost 24% since April 2007, when Zillow began to track home values.” Here is the spin provided by a sea monkey working for the central planners. ”[I]t seems clear that the country has hit a bottom in home values,” said Zillow’s chief economist Stan Humphries. “The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own.“

All of this is done in hopes of increasing interest in the housing market. To draw more simpletons into the ultimate ponzi scheme that is a pillar used to keep the controllers of financial system in power.

Here is more confusion from Robert Shiller, co-founder of Case-Shiller U.S. Home Price Index

Then on July 25,2012 there was this article from CNNMONEY

http://money.cnn.com/2012/07/25/real_estate/home-sales/index.htm

They stated “New-home sales flopped in June, an indication that the housing market may take longer than expected to recover. Sales of new homes fell to an annual pace of 350,000, down 8.4% from May when sales hit a two-year high, according to the Census Bureau report issued Wednesday.“

Then there was the is the NAR’s Larry Yun Explaining The Pending Home Sales Miss.

Remember how the NAR was recently busted back in February 2012 for lying about increases in home sales.

http://ochousingnews.com/news/nar-reaffirms-they-have-no-credibility-by-reporting-false-increases-in-sales

So why would anyone be stupid enough to believe anything the NAR says after they repeatedly lied to the to public all in an effort to manipulate the market. I thought that markets were suppose to be free? I guess that’s the hook line to keep the suckers coming. If you look at other measurements of the market you will find a different story. Let us look at a report of recent new home sales.

 The upward trend you see in sales is due to banks holding on to inventory, which creates a false perception of increased demand because it looks like the over supply of homes is shrinking. The truth is that New home sales are declining see here: http://www.usatoday.com/money/economy/housing/story/2012-07-25/new-home-sales/56476704/1

Sales of new homes fell 8.4% last month from May to a seasonally adjusted annual rate of 350,000. That’s the biggest drop since February 2011. In addition, home buyers signed fewer contracts to buy existing homes in June, despite renewed propaganda provided by NAR about the overall housing recovery. The pending home sales index from the National Association of Realtors fell 1.4 percent from May. Much of the recent sales activity has been on the low end, so a drop in this supply really shows just how dependent this market is on distressed sales.

Median home prices are still in a funk as the price discovery mechanism is broken due to all the manipulation being done to prop up prices.

The real problem is that the flow of foreclosed properties continues to grow and the banks are now a bottleneck in that they hold the property for years off the market in limbo. Foreclosure filings rose in almost 60 percent of large U.S. cities in the first half of 2012, indicating many areas will have more distressed homes on the market later this year,RealtyTrac Inc. reported. More than 1 million homes in metropolitan areas with populations of at least 200,000 received notices of default, auction or repossession, up 1.5 percent from the last six months of 2011, the Irvine, California-based data provider said today in a statement. Among the 20 largest markets, Tampa, Florida; Philadelphia; Chicago and New York City had the biggest percentage increases in filings.

Delayed seizures have contributed to tight supplies of homes for sale. The number of U.S. single-family houses, condos, townhomes and co-ops on the market last month dropped 19 percent from a year earlier, according to the National Association of Realtors’ website. Here is a look at areas across the country that are 90 late on their mortgage payments, which also shows that we are nowhere near a recovery as these homes still have to be processed.

Then we have the New applications for mortgages. I will let the picture speak for itself.

Let us not forget home construction. Since there is diminished activity, the need for workers in the construction industry has also stagnated. During June construction employment totaled 5.5 million workers – a near 30 percent decline from the peak in April 2006 and the same number as in mid 1996.

Record low interest rates are not helping the recovery, but is providing an opportunity for wealthy people to pick up property on the cheap to rent out.

The next time you see an article talking up the market please keep in mind what you just learned. Check the data points for yourself so you don’t fall victim to propaganda designed to push you into the grand wealth extraction scheme called a mortgage.

SM21