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Ceffer
2012 Nov 27, 8:33am
Ceffer
2012 Nov 27, 8:33am
Every year of currency inflation is a buffer and helps the banks and their balance sheets. If the housing market can be propped up for ten years, it is like 30- 40 percent deflation if the prices remain the same. Meanwhile, the banks have time to re-negotiate the financial landscape without collapsing. The big stall works over the long run, that is what current policy seems aimed at.
Spot speculative manias will be shorter, smaller and less frequent over a very long period of basic stagnation, ripples in the pond.
More essential reading for some readers palates.
http://news.goldseek.com/GoldenJackass/1346877028.php
http://www.blackagendareport.com/content/how-obama-helps-banks-rig-housing-market
http://thehill.com/blogs/floor-action/house/264671-rep-paul-banks-must-fail-before-housing-market-returns
http://goodbonesproperties.com/insolvent-banking-system-walking-away-continues/
http://www.azcentral.com/business/realestate/articles/20121005phoenix-housing-investors-market.html
http://www.acting-man.com/?p=20728
Kinda scary actually: "What Mike Whitney concludes is happening, is that the banks, acting as a cartel, are manipulating the housing market to force prices higher, for the sake of their own bottom lines. They have slowed the foreclosure process – not out of concern for the families that live in the houses, but to avoid flooding the market with newly foreclosed homes, which would further undermine housing prices and devalue trillions of dollars in mortgages held by the banks. Whitney, and others, believe that if the actual value of those mortgages were known, most, if not all, the big banks would be declared insolvent"
A Lucky Gravy Train for Some: "If someone wanted to, they could drag out the foreclosure process with regular short sale offers and requests for 3 or more years. In Southern California, where rents on SFH’s can be 3K+ per month, that means that a person could amass over 100K in that time, sufficient enough to live off of for some time afterwards. One could be debt free otherwise, have lavish vacations, buy luxury cars, or simply save by stopping payments on their home.
And, so long as the banking system is in a state of quasi-nationalization, there is no reason for the banking system to foreclose. In the present state where all foreclosures are seen as BAD in the mainstream media, banks would rather suckle off of Uncle Sam’s teat than try to force deadbeats to pay up; it’s a politically stable decision. Indeed, it seems we are approaching the day when the US Government is paying everyone’s mortgage, at least indirectly in the name of maintaining our financial system."
Maybe 'The' Propped Up Convoluded Housing Market?
#housing