Quote:
Originally Posted by BlackRob82
What the Hell ????? are any of you really serious???
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I am completely serious. I cannot speak for anyone else; however, it is my perception that they, too, are entirely serious.
Within Chef Penn's article is a brief element that discusses growth; it points out the dependency of the economy on continued growth. Presently, the domestic and global economy are not growing; instead, they are shrinking. This is why Chairman Bernanke is engaged in such strong efforts to fight deflation and return to an inflationary environment.
As an interesting thought experiment, observe the news and listen for the term "growth". It can be growth of wages, of budget, of sales, or anything else. Notice that there is a consistent assumption that growth will continue indefinitely. Now, ask yourself what happens if that pattern is disrupted.
You have no doubt heard of people walking away from their home mortgage. Have you heard that banks are now abandoning foreclosures?
Below is an excerpt from the NY Times:
City officials and housing advocates here and in cities as varied as Buffalo, Kansas City, Mo., and Jacksonville, Fla., say they are seeing an unsettling development: Banks are quietly declining to take possession of properties at the end of the foreclosure process, most often because the cost of the ordeal — from legal fees to maintenance — exceeds the diminishing value of the real estate.
The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.
LINK
I think interesting times are upon us.