The value of the mortgage markets is about $10.5 trillion. but at least 3.6 trillion has effectively gone up in smoke. Next will be the corporate mortgage market that will collapse. thats a bunch more money. All this money is gone. In Davos they just had this big meeting there they said 30% of the WORLDS wealth just went poof into thin air.
Meanwhile the Biggest banks are saying "If you don't give us TRILLIONS of dollars this will be worse than the Great depression." They are the ones that are constricting the money supply, they are the ones who engineered this whole mess. I think this whole damn thing was engineered. You are witnessing the biggest hostage situation EVER.
Look at it like this. If you think Carter and Clinton made the laws to loosen the lending restrictions without any input from banksters your kidding yourself. Then under Bush the FED lent money with very low interest thus expanding this bubble. Now the Banks will not lend money until someone fixes their problem. So they hold the people responsible for their fuck up and are saying "If you don't give us Trillions of dollars we will collapse the world economy." Banksters are holding us all hostage.
I say burn them down!! We need sound money and common sence regulations. Not Banksters money games not banksters power grabs. The Romanian Example of how to deal with this is a good one.
I think I made this argument before, the value wasn't lost. The money didn't vanish into thin air.
In the case of those that already owned their homes they had already gave their money to some one else, and thus the only thing they had was the perceived value of the home. Which as reality will show was considerably less than what the inflated market was showing.
In the case of those that have mortgages, they entered contracts to pay a certain amount for their homes, and are now whining that their homes were not worth as much as they thought. Had they looked at historical tends they would have been able to see that houses were over-valued, and in economics, like in physics, what goes up must come down.
Which is the opposite of how government operates, which is what goes up (in price) will rarely come down, and that nothing has to die. Ironically, it means that a government bureaucracy is the closest thing to eternal life that we will ever know.
Anyway, the bottom line is that the only thing that was lost was the perceived value of the homes. No money was destroyed, or created, it was just simply transferred amongst people.
It's all a giant head game. Unfortunately the crazy people that don't understand that if they thought the house was worth $250,000 and they paid $250,000 then ostensibly the house should still be worth $250,000 to them, because that is likely the minimum amount they would take to sell, are the ones that are dictating our nation's policies with billions (if not trillions) being stolen from the tax payers to give them money that they neither deserve, nor can justify being given.
If they thought a house was worth $250,000 and paid that for it when they could not afford the actual payments instead of just the interest then they deserve to get foreclosed. It is not the rest of the nation's responsibility to cover for their stupidity.
