BASIC MATH

Dean Baker points out in this article and as I have pointed out time and time again on this blog, an idiot who barely passed basic math could have foreseen the housing bubble.  I’ve shown you the graph of house prices over large periods of time and the annual growth of prices parallels the rate of inflation and averages about 3%.  So when housing prices jumped 10 or 20% per year even I knew there was something going on that could end up only one way.  Guess what they are still making loans far above your income level, you cannot service a loan that is half your normal income.  Yet on they go making these loans.

As a Senator said the other day The Banksters own the Congress and you have seen that demonstrated at least twice in the past few days. They voted down limiting the interest rates on credit cards and they voted down the Cram Down bill that would have allowed bankruptcy judges to downsize the mortgages of those in banruptcy proceddings.

Ten of the nineteen banks failed the stress test and 100 billion bucks is said they need to raise by fall.  Let me tell you here and now the amount these guys are under water is in the Trillions not billions.  The stock market will keep you diverted most of the summer most likely but if I were you I’d hang on to my skivvies this fall.

Advertisements
Explore posts in the same categories: CHECKBOOK ECONOMICS, GET SOME COMMON SENSE, IT AIN'T STUPID IT'S CRIMINAL, MATHAMETICAL DRIVEL, MONEY, mortgage crisis, stupid

One Comment on “BASIC MATH”

  1. Junior Says:

    The only reason to buy a house in a rising market is because you know you’re getting divorced. If you’re lucky, your share will pay your credit card bills.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: