March 27, 2014

Anyone interested in  setting up a housing co-operative to buy housing to then rent to our members along the lines of the idea below ?


My idea is to simply set up an organisation which would continuously seek crowdfunding  for redeemable shares offering (at present) about 3-4% which would be used to purchase rentable homes. The redeemable shares would enable savers currently offered laughable savings rates by the banks to be able to use this as a safe and reliable method of  savings offering much better returns than banks.


The tenants to which these homes would be rented  would also share in the profit their rent ultimately generates as it pays off the purchase cost. The whole idea is to enable the tenants to build up a sum of money from the profits of the organisation for them to use as a deposit to buy their own home.


If the funds borrowed to 100% fund the purchase are fully repaid by means of charging rent, at the end of a term similar to an average type of mortgage of, say 25 years, then at that point the organisation would own the asset outright. It would obviously then be able to offer a portion of the value of that asset to the tenant.


This portion would accrue from the moment the tenant commences paying rent and would be available to the tenant whenever he leaves  which could be at any time. He does not have to remain any longer than any initial short tenancy.


The tenant would always be paying a ‘market’ rent the same as any other tenant. But he would be getting something back that no other tenant ever does. He will be getting back a portion of the rent he has paid which he can then use as his deposit to go and buy his own home with an ordinary mortgage if he so wishes.


Instead of just paying rent to line a landlord’s pocket, tenants would get something back so their rent would be not completely wasted money dow the drain as it normally is for all tenants.


This model would thus enable a person with no capital whatever to accrue a deposit for their own home purchase, or even use this organisation to end up either a long leaseholder on  low rent if he wished to remain in the property. It could almost be viewed as a means of just turning an ordinary rental into a (different) type of mortgage for the ultimate purchase of a home. A mortgage where no deposit is needed at all. It’s just a rental that eventually just turns into actual home ownership.


It offers a means of home ownership which dis-enfranchises no-one and whereby any tenant turns progressively into an owner.


If set up as the legal concept of a Co-op, it is legally allowed to ask the public to invest in redeemable shares which  would pay an interest rate which might currently be 3-4%.


This is just a brief description of the idea, obviously there is a lot of detail to ramble on about, but I’ll leave that for  the moment as it isn’t needed until people want to know more and join.


Oh, by the way. I have spent a lot of time doing all the maths and the idea does work. You can have a look for yourself if you are interested & contact me.


With the help of the crowdfunding crowd, we can cut the legs of those greedy bankers and eventually take all their mortgage business away from them so that every penny people pay to live in a home goes directly towards actually paying for that home and not the huge profits for  greedy bankers.


This idea has wings; it could take off and fly !







Heartless Aggression and Spite by Banks Goads City Council to Take Banks to Court

March 22, 2009

Cleveland City Council In Ohio, USA, is suing the Royal Bank of Scotland and other banks.

Why ?

Because those banks destroyed large swathes of Cleveland City.

How ?

The banks lent money to people to buy houses. The loans were artfully constructed by the banks to be fraudulent so as to milk the maximum possible amount of money from the bank’s unsuspecting victims taking out those mortgages.

The banks knew their victims would take out the wickedly dishonest mortgages because they had no choice. Choice had been denied to them by the banks.

The mortgage victims had been forced into them by virtue of the banks forming a cartel where banks colluded with each other to deny ever larger numbers of the population ordinary, normal, and reasonable mortgages. The banks invented all sorts of mealy mouthed excuses to deny ordinary mortgages, pushing the bounds of credulity bit by bit as they strangled the housing market with dishonesty at every opportunity.

This forced increasing amounts of people desperate to have a home to live in to be forced into these dishonest loan shark style mortgages they knew were completely wrong, nasty, and utterly, utterly destructive.

These dishonest mortgages were designed to steal increasing amounts of money from the hapless victims because the mortgages were arranged in such a way as to increase repayments almost exponentially in a manner virtually all normal working people would find impossible to keep up with.

The mortgages always increased automatically anyway after an initial period, sometimes literally doubling monthly repayments.

Then, when borrowers had difficulty keeping up with repayments, the banks thought they had some kind of divine right to sanctimoniously ‘penalise’ the borrower by increasing repayments even more to breathtakingly fraudulent levels by inventing a whole raft of unrealistic, dishonest excuses, liberally laced with a good dose of pure lies.

This rapidly led to ruthlessly speedy repossession of the houses by the bank. This allowed them to steal even more money from the borrowers they were busy persecuting by charging the creatively described ‘early redemption penalty fee’; as though the borrower had wantonly inflicted some awful commercial insult or burden on the bank for which they had to be penalised for and the poor bank compensated for the dreadful inconvenience imposed on it by the borrower forcing the bank to evict them from their own home.

The banks also used repossession as a means of inventing a whole load of other ‘fees’ like the mythically dreamed up ‘repossession management fee’ which, being charged monthly, could soon mount up into thousands of additional pounds extorted from the borrower.

Now, here comes the really interesting bit. The banks didn’t seem to care that when they repossessed the houses in rapidly increasing numbers the houses would become more and more difficult to sell. In fact whole streets of houses in Cleveland were repossessed and could not be sold. The houses, with families evicted from them, were left unmaintained and became vandalised. They rotted away and soon became uninhabitable as all buildings do when left empty and abandoned.

It wasn’t too long before many homes passed the point of no return and became fit only for demolition. It happens very quickly to any home left empty.

So gigantic areas of the City of Cleveland became an urban wasteland where, previously, there had been neat, well looked after attractive family homes.

Meanwhile, the families had been evicted, making employment for those families next to impossible. I mean, how easily could you or anyone else hold down any sort of job when you are thrown out of your home and onto the streets – forced by a bank to become a homeless vagrant ?

So Cleveland City Council were faced with dealing with wholesale destruction of their City by the banks and also having to deal with an ever increasing tide of homeless people and families with small children being forced to claim emergency welfare payments from the Council just to survive. Oh, and then there was the exponential increase in crime caused by this process.

All of these evils caused entirely by the banks, without any help from any one else.

The funny thing about all these repossessions is, because the houses cannot be sold, the mortgage loan is not repaid to the bank. This makes the act of repossession completely pointless.

It would seem the only reason banks will always repossess even when it causes catastrophe, is simply out of spite.

So, because the banks have caused this to happen all over the World, the global economy now lies shattered, with poverty and deprivation stalking the World and threatening global conflict. That’s war and death in ordinary language.

All thanks to the banks colluding with each other to inflict a wicked regime of extortion backed by heartless aggression and spite.

That is why Cleveland City Council are suing the Royal Bank of Scotland and other banks.

Good for them !

Perhaps a lot of other people – particularly those mortgage holders comprehensively fleeced by the extortion of the banks, for instance – should also take legal action against what are, at the end of the day criminals. Yes, the banks have indulged in criminal and fraudulent behaviour. They extorted money from people by dishonest means. That makes them criminals.

Criminals should be taken to court, punished and be forced to compensate the victims of their crimes.