The big bail out

Well another day of interesting news on the world economy with now the USA government prepared to hold up the inflated cost of housing supporting property developers and banks at the taxpayers expense. At least we see the top Executives of Freddie Mac and Fanny Mae losing their jobs these six figure merchants have at least paid the price ( hopefully) of dreadful management and for ruining so many peoples lives by lending them more money than they could possibly pay back ! Irresponsible bankers should be sued for professional negligence and I hope some of them are !!

But not finished yet......many people think it is just the very poor that are getting their houses repossessed in fact they are ones that got the furniture paid for with the 125% mortgages they were sold. Hopefully they have been able to take the furniture away and use it in their new rented houses at lower cost. It will now be the big houses 5 , 10 million dollar places bought by the yuppies that earnt so much money trading the criminal financial instruments. Passing on the bad debts to the small investors and pension holders. I really hope this housing crisis grows world wide and people realize that saving and investment in real producing assets has value for them and their country. Holding a house should be just like a car. Nothing more and nothing less. Any local jurisdiction that deliberatley is limiting land availability to permit reasonable priced housing is criminal in my opinion.

And good luck yuppies that the gravy train comes to an end and people look for really productive work and not just mixing up the same debt basket and selling it on.... hopefully now we will see a major shift to those that save will earn the most.
In the meantime get ready banks for the next phase when people really accept to lose the money on housing and another 30 or 40 percent of the loans are supported by negative equity. Watch now that the individual mounts class action suits to not pay the debt if you start to make deals with some mortgage holders and not others.

I am so interested to see one day that a whole raft of mortgage holders ask for their debt to be reduced by half ! It can happen.