Update: I have included a video from Jim Cramer's Comments. Is Jim Cramer waging a war against the middle class and the small investor, while helping out his friends who short stocks as some have said? I don't know but I recommend watching the video.

Update: The attempt on the part of Citibank to get the government to take a minority stake, 40 percent, when the government will overpay and should be getting 100 percent stake is pure and simple fascism. It is NOT nationalization. If the government allows this to take place we are so fascistic we can't ever return democracy to the people. Wake up folks and call your congressman and tell him that we don't want the fascist banks who control our government to steal our taxpayer money any more. Enough of this crap!

See also: Is America a Fascist State?

Update, the cramdown plan of the Obama administration will help some homeowners, but the effect of preventing investors from suing will be higher interest rates in the future. That means it is not a good idea to buy a house, because you could sell later into the teeth of higher interest rates.

Before I get into the subject I warn you now, do NOT buy a house. I repeat, do not buy a house. Artificially low interest rates are a TRAP. If interest rates increase in the future which often happens when rates are artificially low, and your purchase is based upon artificially low rates, you will not be able to sell that house when you want.

Deflation could remain and your house value could decrease even further or a freeze will occur in the market if house prices are too high because inflation runs rampant requiring higher interest rates in the future.

You have been warned. These are not normal times. And they won't be for years to come. Taking on a mortgage in the face of massive asset deflation is very risky, moreso with artificially low interest rates. So we go to the issue of class warfare:

It is pathetic to see these paid pundits (and maybe paid shills for Wall Street) on CNBC like Dennis Neal say that Obama wants to wage class warfare on the wealthy. The fact of the matter is that class warfare has been waged on the middle class through the ponzi scheme set up by the United States government and Wall Street to facilitate the hawking of toxic liar, interest only, pay option arm and such loans to the American public.

Massive wealth has gravitated to the top as the middle class has been decimated by phony bankers. So Dennis Neal and others on CNBC, don't tell me that an attempt to stop this transfer of wealth to the rich in a disproportionate manner that has occurred for many years is not necessary to the survival of our republic! Long term, a destruction of middle class wealth will limit turnover of dollars and will limit the ultimate increase in wealth that the wealthy desire. The middle class needs to be jumpstarted and the bonuses and wealth that was based upon ill gotten gains should be returned to the struggling firms. Dylan Ratigan, the only guy on CNBC that I trust besides Mark Hanes, has called this a "clawback" where the firms should receive money back from greedy CEO's in this new environment.

Historically, house prices normally never exceeded 3x yearly household income. House prices in California, the eighth largest economy in the world are still ranging from 5x to 7x yearly income, except for some foreclosures. Leverage boosted the prices artificially, but it made Wall Street rich and if you didn't sell your house price may never retrace those gains!

And you will get a false sense of buying power if interest rates remain artificially low, because if rates ever go up people won't be able to buy your house when you are ready to sell. I would never buy a home until years from now if I didn't own one. Interest rates could skyrocket if there is any whiff of inflation coming back and you won't be able to sell for near what you paid!

There is also a strong argument that the housing bubble in NYC needs to be popped because it was based upon unsustainable and ill gotten wealth.

It is also clear to me that Wall Street was part of a government plan to grow the economy through bogus credit. Government facilitated the leverage that occurred, as well as the blurring of the lines between investment banks and real banks, and the permission of an absence of underwriting standard which allowed a homeless guy in Florida to own multiple houses. Government did this to finance the Iraq War and the Bush Bogus Reign of Deceit. The links below go into this more completely. Be assured that this bubble is finished, that there is no one to take its place, and if there is more debt piled on the result could be inflation though we are in a serious deflation right now and it could get worse.

It is clear to me that if all this was contained to subprime, the Fannie Freddie fiasco, then we could better survive this, but that the alt a meltdown that we face in late 2009-2010 will make the subprime crash look like child's play.

If anyone doubts that the government initiated this ponzi scheme to finance the Iraq War you need to know the things that were said by the fed chairman of the time, Alan Greenspan:

This is the deal, there was a ponzi scheme, and that same Alan Greenspan who said that Bush should secure the oil ministry in Iraq first thing also said that people need to purchase adjustable mortgages in early 2004.

My natural father was Jewish and I am adopted. I view Alan Greenspan as the Bugsy Segal of the financial community. His behavior was shameful.

Be sure to check out the links below including the one where Greenspan said that Americans were paying too much for their homes by staying in fixed mortgages. What he really meant was that he was going to offer you an adjustable and that the government was going to be able to finance his oil war through the false house appreciation that was going to follow.

Greenspan knew this would end in a disaster. He was trained to know. I think he ought to be arrested and because of his age, confined to his home for the rest of his life for what he did to people. That was Class Warfare. I repeat. That advocacy for adjustable loans for Americans already in safe, fixed loans, was Class Warfare!

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered"

Please note, paper money is prone to inflation/deflation. Add bubble policy and liar loans and easy money and option arms and you have class warfare against the middle class.  Thomas Jefferson was thinking of the small farmer when he made the above statement. The middle class is the same group and unscrupulous central bankers declared war on them through years and years of inflation, but no more blatantly than through the Bush administration and the Fed Chairman Alan Greenspan.

 I have serious problems with mainstream media in general. Now they are accusing Obama of class warfare because of two things:

First he accused the banks of irresponsible distribution of bonuses at a time when we are bailing the banks out. I would suggest that he is right. The bonuses may have come from a different kitty, but a dollar is a dollar and we bailed banks out so they could pay bonuses. That is bad public relations at best, and most likely bad judgement because a lot of people now want the banks nationalized so that the government can clean them up possibly with less cost. Certainly this proved to be true in the Savings and Loan debacle. These banks existing today are much larger institutions and there are a lot of credit default swaps betting on their failure. That could put hedge funds into deep do do if the contracts have to be honored. Those credit default swaps are based upon the bonds of the banks going bad. But many still think that we are sending money down a black hole if we do not nationalize the banks. And the banks did not help their cause by giving out these bonuses in the face of catastrophic losses. "Idiots" would be too nice a word to apply to these Wall Street bankers.

The second accusation hurled at Obama was an objection to the reference that unions are the solution, not the problem. Now we know that the unions were a big problem regarding the Detroit auto makers, when the world became more competitive and they did not modify their contracts. However, in the larger scheme of things the working class did not prosper as the Bush economic plan unfolded. The problem with that is that money gravitated to business coffers and just sat there. There was no turnover of that money. Henry Ford is famous for giving his workers a good enough salary so they could afford his cars. Many businesses have not done the same with regard to their workers.

While I am not in favor of over-the-top union power, I am in favor of a more equal distribution of wealth in order to make the economy work. Redistribution of wealth is not just greed of the middle class. We have seen that a failure of some redistribution of wealth has put the middle class on its back, and that has destroyed the economy. While credit is necessary to the functioning of economies, excess credit which causes asset bubbles is destructive to the middle class who lived on borrowing to keep the economy going. Wouldn't it have been better if they had been paid better wages to strengthen the middle class purchasing power which now is waining?  

It is in that context that Barak Obama is saying that unions are important. Walmart should be unionized. People who work there would shop there even more if they made a better wage. This is not rocket science folks.

So, be sure to take what the Wall Street media says about class warfare with a grain of salt and think things out.