The Federal Reserve out of St. Louis has already told you homes have fallen across the nation 8%. And that is just the beginning of a great downturn. And as right now, we are seeing Lenar, Toll Brothers, you know, Sentex, and more. These companies cannot sell their homes. They’re lying to you. They’re bundling them up. They’re selling them off to BlackRock. Well, I think it’s going to get a lot worse. Check out this. Let’s use China as an example for what is coming in America. PBOC unveils a $42 billion monetary cannon to boost debt-stricken housing market.

It says China’s struggling housing market is set to receive a boost from a new nationwide program funded by the People’s Bank of China to address oversupplied conditions. Now, real quick here, type one if you hear that story all the time. Oversupply, oversupply. In America, these builders are overbuilding. There’s, you know, there’s not enough buyers. Velocity is collapsing. It’s coming here. But this is China. As a critical driver of the domestic economy, the nation’s housing market has been in a multi-year slump. The latest initiative by policymakers aims to stabilize the housing market and stimulate the broader economy.

Bloomberg reports that the PBOC Deputy Governor Tai Leng announced the new $300 billion yuan, or about $42 billion US, nationwide program of cheap funding to allow state-owned companies to purchase unsold homes. The government’s buying the homes. See the whole, you’re going to own nothing and like it, that is happening around the world. It’s going to come here. It’s already started, but there is a crack in the dam and there’s going to be a moment where we are going to be able to buy up real estate right alongside of them as it’s coming down, okay? Because that is going to be the government’s, the US government’s bazooka, like the shot across the bow.

They’re going to go, hey, we need to stabilize this. So we’re going to buy up homes and we’re going to make them available for low-income people. It’s going to be amazing, right? I want as many Americans ready for this collapse as possible because this is a planned event, just like the flu that came around the world. Now, it says here, Leng said, the funding will be directed at 21 providers, including policy banks, state-owned commercial lenders, and joint stock banks. A rate of one and three-quarters percent will be offered. The low-cost loans have a one-year term and can be rolled over time.

Now, we’ve seen this with our banks. As our banks are crashing, the government comes in and helps them out, right? They’ve bailed out a handful of them. At a certain point, they’re going to let some fall because they want consolidation. But this is going to be the government’s way of allowing these banks to come in and go, hey, we’re going to provide the funding. You buy these homes, you rent them, and we’re going to stabilize the home market and the banking system all at once. This is going to happen. Now, it says here, the new program powerfully signals that policymakers are pushing for property policy easing and measures to balance the supply-heavy housing market, which casts a dark cloud over the world’s second-largest economy.

This announcement appears to be a step in the right direction in a national-level policy. Bloomberg first leaked the new rescue policy days earlier, and it said also on Friday, policymakers eased mortgage rules and removed the mortgage rate floors for the first and second homes. The PBOC also lowered the minimum down payment ratio for the first-time home buyers to 15 percent. Doesn’t that sound like what America’s been doing? They’re like, hey, you know what, if you’ve got bad credit, we just want you in a house, so we’re going to lower the standards. We’re going to take away some of the fees associated with you having a bad credit score, and we’ll just tack those fees onto everyone that has a good credit score.

See, they’re doing it now. I’ve told and warned that in a few months, or actually, now it’s a handful of weeks, in about two months maximum, you’re going to see the government open up the floodgates on second mortgages, and it’s going to feel like it’s amazing, but it’s a planned trap. Please get ready for this. Read the writing on the wall. China is the world’s second largest economy. We’re the first, for a little short period of time. Hope you got something out of this. Ninja is out. [tr:trw].

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.