Follow The Bottom Violation
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Mar
14
Mortgage Debt as a Percentage of Consumer Credit. You Have Officially Entered Hell.
See the green part of the graph? That’s home mortgage debt up until 2008.
See the blue part? That’s consumer credit.
Call me mathematical, but what’s wrong with this picture? More importantly, what propaganda machine continues to succeed in preventing the breathing portion of humanity from recognizing that the government sponsored and encouraged lending in the home mortgage industry for decades, and this is what happened.
Stated another way: The government not only caused this, it encouraged it. This has nothing to do with market action. This is pure, politically-motivated manipulation. For those of you still so mind-numb that you remain skeptical, ask yourself this: why is the commercial mortgage market still solvent? Answer? Because it doesn’t have government sponsorship.
Paco Ahlgren
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Disclosures: Paco is long TBT, UCO, and gold. He also holds U.S. dollars by necessity, pending the advent of private gold-backed currencies.
You can buy his novel Discipline wherever books are sold.
3 Comments so far
Partners
They had to Paco.
To cover up the theft of our jobs and our wages.
As they increased taxes, fees, regulations and mandates they sucked money right out of our pockets. Then they were gifted Y2K and dotcom (or helped cause both). The music would have stopped back in '02/'03 if not for liar loans and ridiculously low credit card rates.
It took 9-11 and housing to save us from the turn of the century over-employment. What is going to save us from housing over-employment.
It appears that our government thinks that government will.
Good luck to us all with that.
http://www.zerohedge.com/article/santelli-liesman…
Zerohedge linked to an interesting discussion on this topic that occurred at CNBC. The two points of view are Santelli's distrust of the current market and Liesman professing that we're in a recovery. Obvioulsy, I'm with Santelli – this is not a normal market – it has been inflated by the government and only exists due to the funds injected by the government.
Santelli is brilliant. Liesman is a Keynesian working on graduating to Marxist. He's just absolutely clueless…
Paco
http://www.BottomViolation.com