NEW YORK - The banking industry is opening its doors to a controversial new market: illegal immigrants. Despite heated political debate in Washington over illegal immigration in the United States, an increasing number of banks are seeing an untapped resource for growing their own revenue stream and contend that providing undocumented residents with mortgages will help revitalize local communities.
But skeptics worry about the message these home loans send to illegal immigrants: break our laws and we'll reward you with a home.
"It's institutionalizing illegality," said the president of Immigration Matters, a New York-based think tank. "Now there's no distinction being made between the people that follow all the rules and those who break our laws by entering the country or overstaying their visas."
"Banks are counting on the fact that we do a lousy job with interior enforcement. Once you're in the country and you haven't done anything wrong, the chances of being deported are very slim. Banks are banking on that."
CNN/Money, August 8, 2005 |
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Banking on Illegal Immigrants
By: Pete Kendall, August 10, 2005 |
A Towering Sell Signal
A 115-story tower on Chicago’s lakefront “aspires” to be the tallest building in the United States. The proposed landmark puts an interesting and, we suspect, final twist on Edward Dewey’s “skyscraper” indicator, which calls for the tallest buildings to be built at the end of economic booms. Half of the tower will be private residences. So, for the first time (since at least colonial times anyway), the tallest building in the United States is slated to be home to its occupants. To long-time observers of the skyscraper indicator, which called the end of the 1920s boom with the start of the Empire State Building in 1929 and the end of Cycle III with the World Trade Center in 1966, this event signals another major stock top and also settles the big question about the housing boom. The bull market in residential real estate will not long survive the decision to build the world’s highest condominiums.
The Elliott Wave Financial Forecast, July 29, 2005 |
The Elliott Wave Financial Forecast called for a peak in the housing market prematurely, but this article suggests that the signal covered in the issue that came out on July 29 stands a great chance of marking the exact high. The peak in homebuilding stocks as measrued by the Philadelphia Housing Index was reached on July 29. For a host of different reasons, this article, attesting to banks reliance on lax enforcement of immigration laws, puts an exclamation point on the forecast in the latest issue. One key factor is the “heated political debate” referenced in the second paragraph. The reason the argument over illegal immigration is heating up now is that exclusionary politics are common result of a bear market in social mood. In other words, the anti-immigrationists are just getting started, which means the pool of borrowers banks are “counting on” to carry the housing boom to the next level is about to dry up. For additional information on the exclusionary aspects of a bull market see pages 229-331 of The Wave Principle of Human Social Behavior. For more on the bursting of the credit bubble that underlies the housing market, see the next issue of EWFF. |
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