Thursday, December 17, 2009

The Dever Conspiracy


It was a quiet morning, 2001, September 11.

Jerald Dever was working quietly at his computer, occasionally glancing out of his window from the 50th floor. He was a statistician for a large financial office. He had been crunching some mortgage stats for over a week. Home values, size of mortgages and refinancing and line of credits in 15 large metropolitan areas.

Jerald's task was to develop a trend average and evaluation and project home values and mortgage instruments for the country and trends for the next few years. Jerald had been doing data analysis for over 20 years and was good at it. Mortgage trends were new to Jerald but his attitude had always been a number was a number and he never met a data set he didn't like. But these numbers were somewhat disturbing.

Jerald leaned over and hit the intercom, “Dan come in here world you?” A moment later Dan appeared, Jerald looked and glimpsed a wispy cloud on the horizon.

“Whazup?” Dan growled as he came into the room.

“Look at this plot”.

“OK, nice plot Jer.”

“Comon, I'll explain”

“Yeah, I'd bet on that.... and explain, and explain...maybe coffee first?”

“Take a look, then coffee, we can discuss it over coffee..”

“Jer OK, your rules, you buy”

“What we have here is data on mortgages, second mortgages, line of credit, home values and reverse mortgages for 15 major cities.”

“Yeah..nice plot, kind of regular guess that validates the data huh?”

“I've researched as much as I can, there is no evidence that this has ever happened before, I have about 50years of data and the last 10 show me this plot the previous 10 looks like this...”

Jerry Reached out an clicked on an ICON...

Dan reacted “Wow that's DIFFERENT, isn't it...?”

“My best guess is that this has never happened before, can't happen now, and is a Michio Kaku moment...

“Parallel Universes or Black Hole...?

“No more like DNA, eugenics, we have an exact clone in each city...” Jerald mused.

“a Margaret Sanger moment...?” quipped Dan “Maybe more standardized banking practices..?”

“Dosn't explain the market values increasing in such regular manner, or why the refinancing and low equity is so similar in 15 cities..” Said Jerald. “A large segment of home owners seem to be relying on the increase in property values as income, maybe to pay the mortgage...

"Jer, that can't go on forever, its doomed to CRASH big...

"EXACTLY" mumbled Jerald.

“Jer is this data on all property, high, low income, commercial,,?” Asked Dan.

“No only lower and median residential properties... this was a study commissioned by HUD...

“Well it doesn't matter what you give HUD, they wont understand it anyway..”

“Dan this is SERIOUS, something is manipulating these markets, there is no way this happens without a master plan... I'm E-mailing this to George Cardwell at NHERI[1] maybe he has some interpretation..

“Jer pal, I am SERIOUS, I just need some coffee. What kind of organization could manipulate or control mortgages, home values and your whole matrix across the whole country?”

“I dot know yet, OK, I sent the George the charts, we'll buzz him when we come back from coffee..

As Jerald and Dan left the office, thru the window you could see a jet airliner clear a wispy cloud and grow larger and larger until...

Tuesday, September 11, 2001 8:45 AM

[1] National Home Education Research Institute

Friday, March 18, 2005 8:45 AM


Friday, March 18, 2005 8:45 AM

"OK, OK, turn that thing off." Said the swarthy man at the head of the conference table. It was a huge room without any windows, A large screen descended from the ceiling and started to be withdrawn when the projector was turned off. There were six people at the table.

"Well Congresswoman we survived 2004 because the republicans weren't committed, you know the president keeps bringing this up and McCain is starting to chew on it." Everyone reacted when the word congresswoman was uttered, shaking heads and admonishing the speaker with fingers placed over their lips.

"We'll keep it under control" said the dark woman speaking from the shadows.

"Ha Huh?" Scowled another.

"Nah she is correct, we can always squelch this thing, even if a vote gets to the floor, we'll pump up the racism angle. There is a lot of the opposition very leery of being stigmatized as racist."

It was a big room, soundproofed and armed with surveillance and electronic detectors, still they never spoke each others names or mentioned any places that might identify themselves to any eavesdropping devices.

The Swarthy man spoke again, "Everyone understands that Fannie and Freddie are essential components to our plan. This can't happen without a huge effort to soak up all this paper, the community organization will have to push on them to open up even more, relax lending even more, here... our guys prepared a speech, the affordable housing manifesto they call it.... give this on the floor and you'll have them all wee weed up for more mortgages."

"The community people can come up with as many buyers as we can plow thru. Were starting to utilize the illegal aliens, that's potentially another 3 million. We've solved any problem with property shortages, there are projects going on now in Chicago and L.A. and other cities to build affordable housing. In Detroit they are working on a plan to sell the same property multiple times..."

"Whoa sell the same property multiple times? Isn't that opening up an avenue of unnecessary risk?"

"We need to have approximately 10 million sub standard mortgages, we need them below water and we need to pull the plug in every major city simultaneously. It won't matter what anyone figures out after the fact. The financial markets will be DOWN and there will be nobody to call us out.

"We are getting a unanticipated bonus as well, while we are forcing feeding Affordable housing through our exercise" He creaked his fingers of both hands in a familiar quote quote gesture when he said the word fordable. "the more conventional folks are refinancing as their values go up, we are actually driving up values across a large range of price points we hadn't anticipated. The key to this THING of ours " Again his figers flailed the quote signs in the air at the word THING. "is refinancing, or flipping, there has to be no equity behind this paper when we pull the plug"

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