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NINJA Loans

Updated: Jun 3

I have mentioned before how the MSM (Mainstream Media) will give you opposing stories about the state of real estate on the same day. This causes confirmation bias so that anyone looking for information whether it’s for or against will get exactly what they are looking for every time. So trying to find out what is really going on is simply futile.


Lies lies and more lies that’s what we are fed day in day out from the news, the government and these so called experts. In times of crisis they buy bonds and lower rates. Apparently they do all these things to try and “help” the situation and in other cases they threaten regulations and in other times they make certain changes to monetary policy.


The problem is none of it makes a difference in the long term scheme of things because they are not really in control of these things. See the Interest Rates post. The one thing they are really in control of is how relaxed the lending laws have been for so long, since the days of the GFC and possibly earlier than that banks have been increasingly forking out these NINJA (no income, no job, and no asset) and subsequently No-tell NINA (No Income, No Assets) loans to people in an effort to prevent the financial system from collapsing in on itself.


Such a vast array of people in different circumstances including people on pensions with no assets have been getting these loans left right and centre for years due to the declining bond yield aka interest rates. The only thing that has been suspending the real estate house of cards up in the air is cheap credit so why isn’t anyone being investigated for this? In America there were some post GFC investigations but of course no one really got in trouble for it and in Australia there was a royal commission which went no-where.


Not only does this irresponsible behaviour cause massive bubbles but it also affects young families trying to buy a house to live in meanwhile you have these 21 year olds with 12 houses claiming to be millionaires even though it’s all just paper wealth and the news outlets seem to promote this. If the government really wanted to help everyone they never would have allowed these things to occur but the truth is they have always encouraged it. Prevention is better than cure but they really don’t care about you anyway.


To keep a trend going it has to consistently grow at certain rate over time, if the trend is broken then a change of trend means a correction will proceed. The longer a trend has been going for the longer the correction will be. There are no exceptions to this.


Things are about to change.

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