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Forum Post: Flailing Economy

Posted 1 month ago on Sept. 28, 2018, 2:56 p.m. EST by agkaiser (2222) from Fredericksburg, TX
This content is user submitted and not an official statement

The economy will fail, because lenders have their cake and ate it too. The 1% and most of the next nine have theirs. The rest of us have debt and negative net worth.

"... 9 million homeowners lost their homes. They now have to rent. Rents are rising, debts are rising. Corporate debt, municipal debt, and student debt are way higher now than 2008.

"In my book Killing the Host you have Barney Frank saying that he got the agreement of Secretary of the Treasury Hank Paulson to write down the mortgages to realistic charges: namely, number one, what the mortgage borrowers could afford out of their income, and number two, the carrying charge of the mortgage would be the going rent rate, which is what mortgages historically have tended to approximate.

"Obama said, no, I’m representing the bankers, not the debtors....

"... The federal government could have bought the junk mortgage loans in default for maybe a quarter of the value. Let’s say 25 percent, $25,000 for a $100,000 junk mortgage. This is essentially what Blackstone Realty did, and what private equity people did, buying foreclosed properties...."

https://www.nakedcapitalism.com/2018/09/michael-hudson-10-years-since-lehman-brothers-bankruptcy-did-the-economy-really-recover.html

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[-] 2 points by DKAtoday (33685) from Coon Rapids, MN 1 month ago

Yep - Peace Health & Prosperity for..................just the very few.......... This country is circling the drain.

[-] 1 points by grapes (5209) 1 month ago

It's not the drain this country is circling. It's the shit fountain! Right now, the debt grenades are being tossed to the masses as the "higher yields" (also being used for massive corporate takeovers these days as the animal spirits' greed for profits takes charge once again) left over from the credit-crunch days of a decade ago. Then the increasing interest rates will remotely detonate them, rendering them worth less through the sticker shock originating from the ensuing persistent inflation.

High interest rates require monetary creation from thin air to prevent debt defaults, eventually leading to inflation when the monetary supply is weighed in the long term against reality, although the high rates can quash high inflationary expectation quickly but painfully (high unemployment), as happened during the Paul-Volcker-Fed years in the early 1980's.

Blessed are the grenade catchers, for they shall see the molten-copper face of (the Jewish) God.