It’s about protection in these uncertain times: Mortgage rate worries force many to bite the long term bullet

Our American neighbours are suffering in large numbers.

Foreclosures and bankruptcies abound and there is rumour that the worst of the mortgage foreclosures is far from over. Another wave is predicted as the freeze that is in effect wears out it’s welcome.

Millions more in the U.S. could find themselves homeless.

While Canadian bankers will assure the mortgage taking public that the Canadian situation is not like that in the U.S., the truth is we are heading into a global economy, with the powerful at the helm not caring about Canadian “mortgage” sovereignty, let alone national freedom.

While the banking structure in Canada is more secure, the lending principal of allowing huge debt based on low prime lending rates has put many of us in a vulnerable position. If rates are allowed to dramatically rise, where will we stand?

Is the Canadian economy really booming? To answer that, can we trust the Obama administration that claims the U.S.  unemployment rate  is  approximately 10%? Realistically, the unemployment rate is over 20% as many have dropped out of the system. A simple calculation and the integrity of truth is in question. Including those that have left the system would be a truer picture of the economic situation.Therefore, if you can’t trust the little things, how do you trust the bigger ones? In short, can we trust politicians from anywhere to tell us the truth?

So with our strange global economic turmoil, ordinary borrowers that have never locked in are now  feeling compelled to do so.

They say the Canadian economy is booming, and with higher demand for just about everything in this country, economics 101 would suggest that prices are bound to increase. With inflation comes correction – higher interest rates- not just in the short term.

The banks are suggesting while longer term rates are heading upward due to the ties to the bond market, the short term rates will be affected by the prime lending rate changes that will come if inflation continues.

And what worries me the most is the thought that we could all be getting setup.

In the U.S., some less than ethical bankers have been accused of creating the very housing bubble that has now claimed so many family homes. Goldman Sachs has been accused of short selling the very mortgage market they were lenders in. Talk about the ability to control the variables to ensure success. If there was ever a conflict of interest, that would be at the forefront of concern. Yet Goldman Sachs and other banks involved in the correction do not seem to be having to pay the piper.

The world is changing. Derivative scandals have plagued much of Europe in the same way, with Greece. Spain and Iceland at the top of the news. Bankers yet again investing in promises, when the taxpayers are left to bail them out.

If there was ever a reason to accuse a setup that would do it. The people of Iceland had little control over the banks investing heavily in foreign markets, and most only learned of the trouble when the bill came due.

If the globe’s economy can be manipulated and controlled on both sides without seeming regulation, then what chance do we as the average mortgage holder stand if they try to pull a fast one on us in Canada?

Now, what is even more scary is the attitude of our Prime Minister. Stephen Harper has sold his economic upbringing down the river, and joined the band of borrow hardy, global trusting souls that are buying into the worldly idea that the planet as a whole is better off if we all join the same economic pot.

Coupled with this is the concern that the single largest taxation potential, Global Warming (aka Climate Change) stands to control everything from industrial growth to the toothpaste you have in the cupboard. And, with Bill C-6 perched as a freedom stripping tool, the green police will have warrant-less access to your dwelling. No search warrant will be required, reminiscent of the days of Hitler.

Climate Change continues to be under the microscope yet it is business as usual for Harper, Obama, and the rest of the G20. We therefore must question our own government and it’s leadership. Strange things are happening in countries around the globe at the top leadership levels.

Without industrial growth protection, where will Canada stand at the mercy of those who could care less of our well-being?

Back to mortgage rates.

In the U.S. with the mortgage bubble, the people who borrowed suffered. The banks told them all would be okay, yet the reality was the banks involved seemed to know what they were doing – stripping the wealth from the people.

If you want to gain power as a global elite, you must kill all sources of economic independence. What better way than to drive people from their homes and into bankruptcy by making promises the market could not keep.

With folks moving to higher rate, fixed interest mortgages , more profit and power to the banks is assured. Can we trust the powers that be at the top of the lending food chain? Did they trust the same leaders in the U.S.?

Borrowers may be more secure for five years, but all the while losing more cash flow to interest payments. What about everything else?

What if green taxes add more to the cost of living? Mortgage payments usually only represent 20 to 25 percent of net cash flow (income) coming into a household, and this is why people should not feel financially secure if the mortgage alone is paid off.

We as the middle class are ripe for abuse. We are putty in the hands of the financially powerful. We can be played and manipulated by the powers of taxation, inflation and wage freezes.

If we lock in to the higher mortgage rates, there is still little security in believing we are bullet-proof.

But, locking in for many is the only controlled variable that can guarantee us some level of security.


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