GST, Much of Japan's real estate value was value per balance sheet against which loans were made, as opposed to value per transaction where ordinary folks become obligated to stand behind.
J6P electorates will no doubt think about voting in the aggregate to default on the banks and still live in the homes via bankruptcy stay, but that just screws over other J6P whose already underfunded pensions will get hit by the default thus voted in.
Argentina, at the end stage, simply seized up, ATM, jobs, banks, pensions, governments, etc. and Argentine middle class was wiped out even as they seized the productive properties of the shareholders led by the ruling class.
Basically, the survivors were folks with gold, and offshore accounts denominated in alternate currencies.
Everybody else got wiped out, including the folks loaded with non-productive (non-farm land) onshore real estate, especially if they are leverage. The higher the leverage gearing, the finer the grinding of the debtor via financial and economic and monetary and fiscal meshing. The pulverization was total and absolute, with few escapees, biblical in nature.
Let us see if it will work out the same way in fiat money central, via history in action.
Chugs, J |
