Yes folks, those same people who protect us from terrorists, who had no idea that there were 12 Million illegals living in the U.S., who were certain of weapons of mass destruction, and who had little knowledge that Social Security was in trouble prior to the 2008 election campaign; also had no knowledge of the housing scam that was artificially propping up all of America. This is good time to add that I have a lovely beach front condo for sale in Indiana. (And you want to re-elect these people)?
First the dot-com scam, and now a residential housing revival; even the quality of the swindle is going downhill. Geez!
Is the housing collapse and credit crunch over? I wish it were; Americans are broke. We live eat and breathe credit. The U.S. is the largest debtor nation on earth, yet just 27 years ago, we were the largest creditor nation on earth. That's the good news.
The bad news is that the real estate crash is just getting warmed up. All you have seen on the big screen so far are the "Previews of Coming Attractions."
These same economists and the FED who promised a soft landing, are just now figuring out that there is a connection between housing starts, employment, and business at Lowe's and Home Depot. Housing will continue to crater and commercial real estate is right behind the next domino to tumble.
This house of cards that we live in was artificially revived by real estate, primarily residential real estate, which after completion becomes a negative factor to a sustainable economic basis. Its shelter guys, expensive residential shelter that robs the owner and the remainder of the economy by reducing previously held savings and wiping out discretionary income; for thirty long years of payments!
Unless what? Unless inflation comes to the rescue; right? It won't happen this time. If you think the possibility exists, take a look at the value of our existing currency.
How do we create inflation? Lower interest rates, increase liquidity (print more money), and create a dollar that isn't worth spit. But, someone has to buy the phony paper backing the dollar, and for interest to remain low, the return on the repayment paper has to remain low.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
