Re: "The Middle Classes Are At the Limit" 30% of Mortgage Payers Fear Losing their Homes
David Mc Williams - AUSTERITY CAN’T HELP — WE’RE HEADING FOR MASS DEFAULTS
If a housing bubble can bust with collapsing prices, so too can a debt bubble with mass default.
For those looking for an end to all this, the default period signals the beginning of the end of the slump because this is the moment of realisation for both debtors and creditors that the world has changed irrevocably and in order to go forward, we can’t go back to the past. Contracts signed then, in good faith, simply can’t be delivered on because the new environment of falling prices and diminished income and wealth simply make this impossible.
The more new capital is used now to pay these old debts, the more fresh capital is wasted trying to make legitimate poor investment decisions, which were based on nothing more than “hot air” in the first place. It is throwing good money after bad, the ultimate expression of “dead money”.
Thomas Jefferson : Banking Establishments are More Dangerous to our Liberties than Standing Armies.