Friday, October 3, 2008

1929, Just Practice or Prophecy?

Bailout passes, country is DYING

The problem today is that we have substantially more credit created than ever before, and it isnt tied up in the development of new technology, or in fact anything that might pay off and better the economy in the future thereby offsetting the inflation it causes. Nope, its tied up in houses, ordinary homes all over America bought up by an artificially induced housing bubble. 3 trillion dollars worth of debt tied to houses that in reality arent any more usefull than the ones you or your parents grew up in. So where does their real value come from, to generate such an increase in price? From the market, houses were selling so often that they were deemed more valuable as a virtue, but now that the market has chilled, where is that desirability? gone, along with any real increase in value that the house had with it. Unfortunately, the mortgage debt is still tied to the old value, and the banks, are being forced to pay for defaulted loans on houses that they couldnt sell for what is owed on them, and that no one could afford without taking out another mortgage.

Text from the Reverend


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