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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (4880)	3/11/2008 3:33:37 PM
From: stan_hughes	Read Replies (2) \| Respond to of 71454

Forget the reset issue -- it's totalling misleading, especially in terms of identifying the timing -- this crisis is about having no equity in housing, not about an interest rate that's too high or might become too high in the future. As residential RE continues to fall in value, progressively more and more people are joining the ranks of those who have stopped paying their mortgages, and who are then also sticking their tongues out at the banks about the state of delinquency. These people are quickly learning that they will be able to continue to live in their house for a year or more for free without suffering foreclosure, and that the odds are very good that the government might even come along and effectively forgive the unsecured portion of their mortgage, allowing them a total free pass from having to account for their own greed and stupidity. The only people who get screwed in this arrangement are the poor working saps who actually paid for their homes and don't have the option of laying off the decline in their house's value on somebody else. So what kind of a work ethic is being fostered here for that imaginary manufacturing revival that you hope will one day emerge? Not a sound one, to say the very least. Look at the demographics involved as to who the offenders are in this tragedy, and who are the victims. Watch the worker bees leave the hive and retire in disgust to leave the drones to fend for themselves. Because they are drones, they will expect to be bailed out again the next time too, and the next time after that. Nobody will want to work, because that's for suckers. What is happening out there today in housing land today will negatively color people's attitudes toward the value of making an honest living for a generation