January 05, 2008

A HousingPANIC warning against the dangers of the Real Estate Industrial Complex (REIC)

Longtime HP'ers know that we've railed against the "REIC" for years - our term for the "Real Estate Industrial Complex" composed of the incestuous and corrupt cabal of realtors, mortgage brokers, appraisers, title agents, homebuilders, lenders, home supply & furnishing retailers, housing cheerleading media, illegals alien labor, investment bankers and a few more.

This REIC ecosystem is motivated to deceive, obscure, restrain free trade, and screw the homedebtor as hard as possible in order to earn the very highest commissions.

Powerful organizations like the National Association of Realtors, the National Association of Homebuilders and the National Association of Mortgage Brokers have bribed and corrupted government officials at the highest levels, ensuring they could run havoc over the American people with limited or no oversight.

Well, we now see the terrible damage these evil and corrupt people and institutions have had on our nation. And it's just going to get worse.

Members of the REIC have threatened me with harm from time to time, so it's actually best that I blog from overseas I'd imagine. There are millions of people whose wealth depends on REIC evil continuing, and blogs like HP are disrupting their evil ways. I'm not sure they took us seriously in the beginning, but I bet they are now. HousingPANIC is a dangerous blog. HP'ers are subversive thinkers. And if HP isn't contained, all hell could break loose.

Frankly, I'm surprised more of us haven't been sued, shut down, threatened or harmed. Trillions of dollars are at stake. To my fellow bloggers - be careful out there especially as this thing spirals downward. To my readers - when the REIC comes after us like they have with Aaron at ml-implode, please be prepared to help. We can and we will defeat the REIC, no matter how long it takes.

I've taken a piece of Dwight Eisenhower's famous Military Industrial Complex farewell address to the nation and changed out MIC for REIC. I think you've seen by now that the REIC is indeed serious stuff, it's time for Congress and the American people to strike out against these evil-doers, root out the corruption and graft, and regulate the hell out of these scum so they will never be able to do what they did these past few years again.

HousingPANIC calls for the death of the realtor and mortgage broker professions. We call on all Congressmen to return any NAR, NAHB or NAMB funding, and to disavow any future bribes. And above all we call for strict regulation of mortgage lending, home selling, home appraisals and real estate fees.

The REIC must be defeated. It's time to rise up. This is an important matter, and these are historic times.

Here is the new HousingPANIC (via Eisenhower) warning: The Dangers of the Real Estate Industrial Complex


In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the Real Estate Industrial Complex (REIC).

The potential for the disastrous rise of misplaced power exists and will persist.

We must never let the weight of this combination endanger our liberties or democratic processes.

We should take nothing for granted.

Only an alert and knowledgeable citizenry can compel the proper meshing of the huge real estate industry machinery with our financial goals, so that the economy and liberty may prosper together.

The Real Estate Industrial Complex must be defeated. Our financial future is at stake.


Anonymous said...


This blog should now be taken seriously

Anonymous said...

Fucking amazing post

I'm proud to be a HPer and stand with you in this fight against the REIC


Anonymous said...

Hi Jen,

I log on in binges. I have lived in AZ before and have had Family there too. We all moved out of the state except for a few friends. I do logon to see what is going on and how the market is fairing. All of us were looking to retire in Scottsdale or Carefree, but the lack of community feeling and transient speculators turned us off.

We left for a multitude of reasons, but the tipping point was housing and a lack of value. Coming from a family of tradesman and builders in the NYC burbs, we know housing. We know quality. But there was little or no quality in the crafstmanship and most were built buy scumbag national homebuilders. We noticed that just as no one was building a home to last, no one was buying a home to live....people bought just to flip. We met slimy folks who bragged about owning 8 homes, 4 or more not rented, and the ones that were, were negative cashflow. We also met people who bragged about paying over asking price for a home and paying 300k for a home that was 180k 12mos prior.

Those people were idiots, but now they are going bankrupt. That 300k home needs to decline to 200k or less because the incomes are not there to support those prices, especially with tighter lending standards. To mortgage 300k, you should need an income of 120k. How many people are salaried at 120k? But honestly selling in the 200-300k range should be easy... compare that to the 500-900k market... in Gilbert??? What is the culture? A Harkins theater? A Maccaroni Grill? A Best Buy?

We may return to AZ in years to come or we may not. There were many good people there, but they are victoms of the boom and now the bust. The scum and filth from SoCal and the illegal alien invasion is ruining the state right in front of your eyes. Everyday there are tails of robberies and gang slayings all over the valley, and even in Scottsdale, break-ins, rapes, murders. It is insanity. Future whores of America getting boob jobs for their sweet sixteen in Scottsdale, and Photo Radar big brother facism everywhere is not my idea of a normal healthy community.

So if I could pick up a modest home in Carefree on 3-5acres, then maybe I'll retire there, but for now, the prices are outrageous. Think about it, millions of people MOVED to AZ for the low priced housing and laid back lifestyle, and that ideal is long gone. Millions of birds were going there for that 200k retirement home and if the price is now 400k, and I get a side order of photo radar, and MS13 gang graffetti, you can keep that. I log on to ZIP for my friends who are there, and perhaps if I find the deal of the century, I'd buy. But for now, the flow of retirees is going to not only grind to a halt, but it may reverse out of there. I can keep my home back East and stay close to friends and family and fly into the Boulders for month's stay.

Good luck,


Edgar said...

Reno homedebtors really are under water. How lucky can you get? Now insurance pays off the overblown mortagae. Bwa ha ha!!

Toby said...

Home furnishing stores? What's next Day Care Centers?

Anonymous said...

Take your pick of industrial complexes. They are called special interest groups and they own Washington. Pharmacy, Banking, Wall Street, and just about any large corporate group you can imagine.

Mid Hudson Valley NY said...


Although I strongly disagree with your view in relation to the war on terror/ Iraq, which is also my main issue with Ron Paul.

I do agree with you 100% when it comes to the corrupt REIC.
I stand behind you and support you.

History will prove you right; this last Housing bubble was caused by the REIC.

I am in the Real Estate business, and have been for a long time, I have never met an honest RE broker / agent.. NOT 1…

Bless you, for creating a space were people can discuss the global housing issue, in an understandable language.

k.w. - southern, ca. said...

The housing ponzi scheme has
been exposed for what it is.

Continue to let the truth be
told - it's the right thing to do.

Anonymous said...

I pledge allegiance to Housing Panic.

United we stand in our fight against REIC.

God Bless us all.

Anonymous said...

It shows the importance of net neutrality. I wish this important issue got more attention. Without net neutrality it would be just like with Yahoo search where this site was blacklisted. Monied interests could easily pay off ISPs so that this site loads slower than using a 14.4 dial up modem, if it loads at all.

Anonymous said...

Mid Hudson Valley NY:

Why are we in Iraq? We support a military dictator in Pakistan with American tax dollars, so why are we in Iraq supposedly spreading democracy with American tax dollars? They did not attack us. Why are we starting pre-emptive invasions under UN Resolutions instead of the US Constitution?

I would much prefer Ron Paul's marque & reprisal method against terrorism. Terrorism is not a traditional army, and can't be fought that way.

Good video about the troops in Iraq since our news is too busy covering Britney Spears and drugs in baseball:


Anonymous said...

There's even the education industrial complex that locks into place our failed educational system. All reforms are opposed by the teachers unions. They are not there for the students. They are there for the paychecks and early retirement. When they cry about their pay, think about the fact that they only work 9 months out of the year and get two weeks off for winter break and a week off for spring break. They never have to fear being laid off. Once they get seniority, it's almost impossible to fire an incompetent teacher. Nearly 40% of middle school students are functionally illiterate in many big city districts. The USA spends the second highest amount of money per capita on students in the industrialized world and is second to last in math, science, reading, writing, and comprehension.

Anonymous said...

Undoubtedly, Keith you and other HPers and bloggers have saved many good people from getting locked in to debt they can not afford.

The Real Estate Industrial Complex became to big and powerful for it's own good.

Instead of providing a service to help people get into a home they can afford, The Complex chose to prey on peoples desire to own a home at any cost with the promise that real estate would only going up in value.

The Complex was dead wrong and new it!!! They chose to live for today, make the commissions today and screw the economy and the hard working family.

People go to a realty professional or a loan professional to get financial advise about the largest single purchase they will probably make in their life. We have an industry with too many who apparently are not competent enough to steer people through this huge decision!

This blog should continue to expose the incompetence, coercion and fraud taking place in an industry which at this point could very well bring down not only the American economy but the world economy.

The Complex has grown worldwide like a cancer. Thankfully, blogs like HP have finally came on the scene.

Great work Keith! Keep it up! Let's continue to get the word out so others lives will not be destroyed.

Anonymous said...

Clicked some Google ads for ya youve made me thousands keep it up bro

Anonymous said...


Policy Advisory Board- Member Companies

84 Lumber Company

AFG Industries, Inc.

Andersen Corporation

Armstrong World Industries, Inc.

Beazer Homes USA, Inc.

BlueLinx Corporation

Boise Cascade, LLC

Boral Industries

The Bozzuto Group

Bradco Supply Corporation

Builders FirstSource

Building Materials Holding Corporation

Canfor Corporation

Centex Corporation

CertainTeed Corporation

Champion Enterprises

Countrywide Financial Corporation

Crosswinds Communities

Fannie Mae

Fortune Brands Home and Hardware

Freddie Mac

GAF Materials Corporation

Georgia-Pacific Corporation

Gibraltar Industries

Hanley Wood, LLC


The Home Depot

Hovnanian Enterprises, Inc.

Huttig Building Products, Inc.


Johns Manville Corporation

KB Home

Kimball Hill Homes

Kohler Co.

Lafarge North America

Lennar Corporation

Louisiana-Pacific Corporation

Marvin Windows and Doors

Masco Corporation

Masonite International Corporation

McGraw-Hill Construction

Meritage Homes Corporation

MI Windows and Doors, Inc.

Moulding and Millwork, Inc.

Move, Inc.

National Gypsum Company

Oldcastle Building Products, Inc.

Owens Corning

Pacific Coast Building Products

Pella Corporation

Ply Gem Industries, Inc.

Pro-Build Holdings, Inc.

Pulte Homes, Inc.

Realogy Corporation

Reed Business Information

The Ryland Group

S&B Industrial Minerals S.A.

The Sherwin-Williams Company

Simpson Strong-Tie

Stock Building Supply


UBS Investment Bank


Whirlpool Corporation

rosalan said...

Well...I'm a Real Estate Broker AND a Mortgage Broker....so I guess I deserve 2 helpings of venom! Now I have always fancied myself to be one of the forthright, honest folks in the business. I made it a point to explain all aspects of the deal (mortgage end) and always act as a buyers broker (fiduciary). In Arizona, things were going great....until about 18 months-2 years ago. My market was going for 90-130K, loans were affordable...mostly 30 years, but if they wanted 100%, then we had go with 80/20's or even 97% Community programs, in the low 6'ss. But then the investors came into the picture....and that's when the shit hit the fan. Prices started to skyrocket and we had to start with those damn ARMS. Now of course everyone that I worked with understood that these loans were only good for 2 or 3 years and then it was time to refi. They were told to keep their noses clean, pay their bills and when it came time to refinance, it shouldn't be a big deal...because as we all know...REAL ESTATE NEVER GOES DOWN (HA hA). Well anyways, we know the rest of the story.....the investors and speculators killed the goose that layed the gold egg--prices got too high. Then loans that resulted become toxic relatively soon after they were securitized and the greed pigeons came home to roost. The important thing to realize though was that it wasn't necessarily the Realtors and Mortgage Brokers alone that should take the lions share of the blame.....the speculators started it...and many of them were not in the business. The appraisers probably were more to blame than the mortgage brokers and even realtors....although I will admit, some of my listing brothers and sisters did let the market get out of hand. Some of us honest folks were caught in the middle--the buyers wanted the houses no matter how high they were, and no amount of advice was going to change many of their minds. I yearn for those times when prices were lower. Although I didn't make as much commission, it felt safe!

Anonymous said...

Simply put: America has failed. Congress has failed. What was once the American dream of owning a home has vanished. All the large home builders are building crappy houses, and you can't tell me people that buy them are telling themselves "This is my dream house", because it simply can't be. We (including myself) needed a tax write off like so many of us to survive and did what ever it took to take advantage of the situation - greedy, corrupted lenders. The sad part is nobody's doing anything about it! I have thought long and hard about moving overseas, and I have never seen a more opportune time to leave than now. It is with deep sorrow that I have to move with my wife and kids someplace else to pursue the foreign dream because the American dream is now a nightmare.

Anonymous said...

Good post KWEEFER. Let's destroy the REIC. Then we'll all live in tents.

Communists like you and your followers hate all ICs (Industrial Complex). You hate oil companies. You hate banks. You hate realtors. You hate military contractors. All of them have the same thing in common that you despise. They make a profit and for communists that is a deadly sin.

Your side tried to make communism work for 70+ years. It was and is a complete disaster. Unless that is you consider N. Korea and Cuba successes.

consultant said...


This is why I read this blog. The REIC is turning this country into a failed state.

Our neighborhoods have been turned into one giant Las Vegas blackjack table. And that's supposed to be a good thing??

Capitalism unchecked is like a monster rat on crack looking for it's next meal. An unpleasant thought but also our current reality. Government bought and paid for by the few is government for the few. That's not democracy.

So we have to support HP. It's the right thing to do, and the 'right thing' is the only thing that really makes us Americans.

Anonymous said...

Its no wonder why I cant find a American company to purchase my new line of futuristic home technologies! They are all a bunch of "greedy insiders!" They even rejected Skypad Technologies! Check it out! They bypased this new American innovation company, wallplex.com

Without talent and vision, American companies (and workers)are doomed! Foreign companies rule! Keep destroying America people! Lets do it right!

Anonymous said...

What about those car manufacturers and the oil companies? Do they worry you sick too?
Take your meds you wacko!

Anonymous said...

Way to go !
Throw them all into jail- those scum sucking Realtors, Lenders, Appraisers. God knows it wasn't the American public that was even more greedy, thinking they were going to make more than their friends on that big house purchase. It certainly wasn't the common Joe who refinanced into oblivion paying of the credit cars, vacation time shares, and the Surburan, on that low payment rate mortgage. While you are at it, we should Nationalize health care, automobiles, churches, and Walmart- they are all after our money. It certainly isn't us that have the power to spend more than we make.

MId Hudson Valley NY said...

Anonymous said...
‘Mid Hudson Valley NY:
Why are we in Iraq? We support a military dictator in Pakistan with American tax dollars, so why are we in Iraq supposedly spreading democracy with American tax dollars? They did not attack us. Why are we starting pre-emptive invasions under UN Resolutions instead of the US Constitution?’

Agree with you in part, that it was a mistake to pander the crazies in the UN, and mess around with useless resolutions.
I will articulate why going into Iraq, was and is the right thing, here on HP,
when I have a little more time.

For now I have a small request of you.
Please go on a ‘chocolate covered evil’ diet.

For the next 30 days do not consume any ‘chocolate covered evil’.
Do not listen to the following affiliated radio stations.
1) BBC
2) NPR

If you just do this, the answers will likely come to you,
because they are really simple and very obvious.

It takes consistent programming, subtle messages and sugar coating
to distort the plain common sense truth.

Anonymous said...

Hey - great attitude... But why stop at doing away with all realtors and mortgage brokers - let's get rid of stock brokers too - and investment bankers. I mean, they fucked everybody with that whole dot-com thing didn't they. And how about attorneys - those guys are fucking leeches - do away with the lot of them I say. While we're at it let's just eliminate all doctors too - I mean come on, why do I have to pay for an office visit when I can self diagnose a sinus infection and run down to a pharmacy to pick up some Cipro myself. Fucking get rid of them all man... Fucking accountants and car salesmen, god damn fucking teachers spewing all that left wing liberal venom in the classrooms - just fire the lot of them I say. Fuck everyone and everything - we're all just out for ourselves - nobody gives a shit about anybody anymore. How about this - shut this fucking blog down because you're an ill-informed fuck who doesn't know his ass from a hole in the wall - well, maybe you do but fuck you anyway. All you're doing is spewing venom on this site and you're not doing anybody any fucking good. And one last thing - what the fuck is a Real Estate Industrial Complex anyway? I know, it's your own personal complex you have against other people.

Get real. Nobody takes your half-assed blog seriously you fucking 2.5 GPA high school dropout. And if you have any balls you'll put this comment up because it's funny - like this entire nation trying to pass the blame for another asset bubble just like they've done in the wake of every other asset bubble in the past. Come on - you're all sheep. The real shame is that most Americans are clueless when it comes to the actual causes behind this housing/credit calamity. The first of which is the fact that the fate of our monetary system lies in the hands of a central bank that is accountable to no one. They're debasing our currency as we speak. They ignore food and energy costs when reporting core inflation. Money supply is no longer reported to the public. They've opened up poverty auctions to private banks on a staggering scale. If all the real estate assets banks hold as collateral on their MBS's were marked to market based on borrowers ability to support the underlying debt instruments, then all banks would be insolvent. So guess what - they are insolvent. The calamity you are witnessing has little to do with realtors and mortgage brokers - they are symptomatic of the disease. A disease which began in 1913 when we relinquished control of our monetary system and put it in the hands of a central bank with no real public oversight. It was like giving the keys to the hen house over to the coyote. Jump forward to present day. Look at who's running the US Treasury - the ex-head of Goldman Sachs. Guess what Goldman did when Paulson took the post? They fucking shorted the ABX (mortgage backed securities). I mean, you gotta be fucking kidding me. If that's not an insider move I don't know what the fuck is. Goldman is the only major Wall Street firm THAT POSTED FUCKING PROFITS IN 2H'07. The rest of them are reeling. And if that's not enough Goldman recently advised investors to sell gold - GUESS WHO WAS HOLDING MASSIVE SHORT POSITIONS IN GOLD!!!! I mean come on - get in the game man! Realtors and brokers? Fuck man do they have the wool pulled over your eyes. You're looking in the wrong fucking direction.

Harvard MBA

Anonymous said...

REIC Heil!!!!

Anonymous said...

>> Good post KWEEFER. Let's destroy the REIC. Then we'll all live in tents.

Were you born stupid, or did you somehow become stupid over time?

Anonymous said...

Harvard MBA,

"They've opened up poverty auctions to private banks on a staggering scale."

What does this mean?

Seriously, you should start a Banking Panic blog. :)

Beans and Bullets