I worked in the mortgage industry for a few years. Before that I sold new, single family homes. You can believe it when the experts say it was designed to fail.

I remember one family from south of the border. The patriarch was sitting in my office. On his knee was his daughter’s illegitimate child. Translating for him was his English speaking pre-schooler! Along with him was his American (sic) high schooler daughter. She told me that the family wanted to use 3 incomes to qualify for the home: his, hers (she had just graduated high school and was seeking employment) and the income of the daughter with the illegitimate child. The multi-generational family of 8 wanted to buy a 1,600 square foot home.

Illegal aliens were allowed into the country during the real estate bubble for two reasons: to provide cheap – read: “subsidized” – labor for the home builders, and also to colonize fast growing areas of the country.

So, folks need to remember that the mortgage mania was not just welfare for the rich and welfare for marginal borrowers, but also welfare for Mexico and a safety valve for the Mexican elites. They successfully rid themselves of millions of members of the Mexican underclass by shoving the underclass northward. This underclass is now “entrenched” in this country.

Think Jim Rogers knows this? Would he care even if he did?