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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (24535)	2/28/2005 2:16:11 AM
From: mishedlo	Respond to of 116555

Hotel "Debt" California Americans are headed into Debt Slavery, one credit card and one house at a time. To make sure they get there, Congress is rushing though a major reform of the Federal Bankruptcy Law. Since banks have been posting record profits, one must wonder why there is such a rush to prevent the little guy from getting a “clean slate” in Chapter 7. Indeed, when sophisticated lenders, with millions of clients and infinite amounts of cash, continue to offer credit cards and increased credit lines, why is it that they are shocked when someone can’t afford to pay the interest or late charges on their credit card bill due to illness or loss of a job. Even with bankruptcy filings – over 1.5 million a year – the banks claim to be totally caught off-guard. The banks claim they need protection from sophisticated deadbeats and can afford to pay for protection by contributing to Political Action Committees. Moreover, even though the banks know how to price risk, and charge double-digit interest rates, they’re livid when people who fall on hard times can get away with not paying them back with interest. Congress seems determined to make sure that individuals enter the world of Debt Slavery and want the courts to be the collection agency. Bankruptcy reform means many a poor soul will be hounded for years through a Chapter 13 filing, instead of being given a fresh start in a Chapter 7 filing. If you file Chapter 13, any cash you make will be “sucked out” of your paycheck and go towards your debts for many years to come. You can forget about paying off a mortgage or saving for retirement. (Surprisingly, these new bankruptcy laws will still allow corporations to stiff their creditors. Indeed, how could “The Donald” afford to buy and/or maintain his mansions without stuffing his junk bond holders with his casinos in Atlantic City?) Debt Slavery is a cornerstone of the Ownership Society. Why? Because now the bank owns you! More here: financialsense.com

To: ild who wrote (24535)	2/28/2005 3:27:27 AM
From: damainman	Read Replies (1) \| Respond to of 116555

"Another sign of RE top:" On that note, my brother in-law who bought a condo in Hawaii for 140k and sold it for 70K says California real estate is feeling a lot like Hawaii did! He's the only one who doesn't look at me funny when I say RE is TOO high...What's weird is I don't see a lot of homes for sale in my neighborhood right now. Last summer, there were at least 2 or 3 on every block and one stretch had 4 houses in a row for sale. Seems like the mass exodus has already taken place to cheaper climes but prices are still strong on the Central Coast and 2 houses I know of received multiple offers about 5% higher than last summer.