Waterboarding Bankers Next?
Oct. 14th, 2009 04:51 pm![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
All these new "proposals" are doing is attempting to once again screw the American public, turning them (once again!) into debtors and renters while lying to them about being a "homeowner." In addition if the original mortgage was a purchase money first an effective refinance into an interest-only product will destroy the non-recourse nature of the note in those states where it applies, leading those who are trapped in these loans a couple of years from now to lose not only their house but everything else they possess. (Emphasis by the author)
In the second, he seems to echo Chris Martenson (whom I've mentioned before) when he says how very badly our debt will eat our future:
Everyone in America wants "a pony" - the magical alchemy that will turn lead into gold, or return their stock market portfolio to its previous purchasing power.
It won't happen so long as our government and citizens spend more than they make.
There is one and only one way to make that happen: You must grow output faster than debt. When there is a credit overhang this means you must get rid of the debt at a faster rate than GDP declines.
Don't listen to talk of "the recovery." Until these un-discussed debt problems are dealt with head-on, there won't be one. Instead, there will only be more kicking the can further down the road, where it will grow and wait to impoverish the next generation.