I came across an article published a couple of weeks ago by the Financial Times which made for some interesting reading. The article itself is hidden behind a paywall, but can be found here.
Here in the UK, Lloyds Bank is planning to buy and rent out housing stock across the UK, and aims to have tenants by the end of the year.
Lloyds Banking Group is planning to become a large private landlord as it searches for new sources of revenue in an era of low interest rates, according to documents seen by the Financial Times and people familiar with its plans.
The initiative, known internally as “Project Generation”, will involve buying and renting out new and existing housing stock across the UK, and aims to have its first tenants by the end of this year.
Lloyds also owns the Halifax, Bank of Scotland and Scottish Widows brands. The lender hopes to take advantage of its low funding costs, name recognition and knowledge of the housing market to become a major player in the sector, which is fragmented and dominated by small businesses and retail investors.Lloyds is the UK’s largest mortgage lender and its commercial banking business has existing relationships with almost all the UK’s largest housebuilders. It has also directly invested in several housing projects with smaller developers in recent years through a partnership with Homes England.https://www.ft.com/content/0f4f74dc-7e32-448d-9eb0-9fb264a3c8c7
Before I continue with this, it is probably important that I briefly go over the scam that is ‘fractional reserve banking’, then this might start to make a little more sense.
Lending money that doesn’t exist
If you’re looking to buy a home, unless you have huge amounts of cash in your bank account to be able to buy a property outright, you’re going to have to go to your bank and apply for a mortgage.
If you’re successful, the bank agrees to ‘lend’ you this money, which you must pay back over a period of time, with ‘interest’ added of course. So you will always end up paying back far more than you borrowed. That’s one way that banks ‘make money’ naturally.
But the thing is, that in most cases, the banks don’t actually ‘give’ you any money – its just numbers on a computer screen. This money ‘doesn’t exist’, it has been conjured out of thin air in the form of ‘credit’.
So great, the bank has given you a load of money so you can buy a house. All you have to do is pay back this loan in the form of a mortgage, usually in monthly installments with interest, over a long-term period.
So what happens if you find yourself in a position where you cannot meet these monthly repayments?
Simple really, if you default on your payment arrangement, the bank has the right to seize any asset used as collateral, which in this case is usually the property you took out the mortgage on.
“Can’t Pay? We’ll Take It Away!”
So in a nutshell, the bank has ‘loaned’ you money that doesn’t exist, and now you can’t pay it back, it can seize your assets (with monetary value) and ‘gain wealth’ it didn’t have in the first place.
“Abolish Private Property Ownership”
At this point in time, I really do not know what happens to properties when the owners default on their mortgage repayments, perhaps they become ‘tangible assets’ of the bank and they are then ‘disposed of’ (ie turned into ‘actual money’) via auctions etc.
One of the stated goals of the communist UN Agenda 21 / 2030 is to ‘abolish private property ownership’.
So lets think about this for a moment. We have one of the largest banks in the UK announcing its intention to become a ‘private landlord’ by buying and renting out housing stock.
Is it not also feasible to suggest that banks (not just Lloyds Bank) could ‘acquire’ large amounts of private property through ‘foreclosure’, ie ‘defaulting’ on mortgage payments?
Rent prices are skyrocketing at the moment, it would appear. From that same article:
The radical plan highlights the pressure on retail banks to find ways to boost their income as low rates squeeze the profit margins on their traditional lending businesses.
As well as providing direct benefits through rental yield and house price growth, the bank is hoping the move will boost its existing businesses, for example by providing an opportunity to cross-sell rental deposit loans or insurance. It could also help fund Scottish Widows annuities.
My emphasis in bold. Instead of offloading ‘acquired’ property to recoup cash, what if the banks kept hold of these ‘assets’ and then offered them out for rent?
It seems to me a great way to manage the property market, as well as control the available housing stock, by acquiring and renting out properties, thus limiting the purchasing availability.
“You will own nothing, and you’ll be happy”
If there is an economic crash, which lets face it is going to happen sooner rather than later, there are going to be a lot of people who can’t afford to meet their mortgage repayments, and will ‘default’ on their debt.
Assets will be seized, but as a result of the ‘crash’, the current housing market will be destroyed, unless you are already a wealthy private landlord or investment company with the cash to buy up these liquidated assets.
Private home ownership will become a thing of the past, because there will be no homes left to buy.
Banks will make their money by renting out properties, as well as ‘loaning’ money to renters in order to pay their deposits. And of course, by selling them ‘insurances’.
This is where it begins. Lloyds Bank won’t be the first, expect others to follow suit.