Big Surprises at Bilderberg
By James P. Tucker
Bilderberg expects interest rates to rise and many Americans to lose their
homes in the months ahead. Meanwhile, they hope they can pressure President Bush to refrain from an all-out invasion of Iran while maintaining oil prices at their current record-high levels of about $70 a barrel.
Timothy Geithner, president of the Federal Reserve Bank of New York, predicted rising interest rates and difficulties for families that have obtained adjustable rate mortgages, or “variable” interest rates. Many are likely to lose their homes as rising home mortgage rates add hundreds of dollars to their monthly payments, he said. While most listened solemnly and some expressed concern, one was heard to say, “stupid Americans deserve their fate.”
Many Americans, especially young families, have been buying expensive homes at low but “variable” interest rates. Others have been paying just the interest owed on their homes and not the principal. They are the most vulnerable, Geithner said. Some have paid little or nothing down. Some institutions “lend” buyers the down payment.
When home construction peaks and prices start downward, many will find they owe more on their home than it is worth in the marketplace. They will also find their mortgage—even “interest-only” payments—are unaffordable.
The banks will get the homes back and sell them again.