lsayre wrote:Lisa and Pete, I could agree fully with your position if we had both an honest money system and honest banks and if money was real, but with fractional reserve banking and fabricated money the entire monetary system is designed to create a certain number of failures (bankruptcy and foreclosures) as an iherent requirement. This is due to the fact that all fiat money is brought into existence as debt. Either as a debt obligation for the Treasury Department to pay back the Federal Reserve with interest for the permission to print (or keystroke) into existence new money (via the TBills the Treasury Dept. gives to the Fed in return for ederal Reserve Notes (what we think is money), or as a debt obligation of lenders when banks fabricate bank credit (loans) which also must be paid back with interest.
Notice that in either of the two means by which money can be created only principle money is EVER created, yet it is always to be paid off with interest. The interest is never created, only the principle. Thus due to interest (and the compounding of same) there is always far more debt inherent inthe system than there is money in existence to pay it off. Therefore it is implied within the fractional ressrve banking system that a certain percentage of failures (defaults) are both expected and required. The system is literally designed to breed a requisite percentage of failures.
As long as the system itself is corrupt some level of culpability exists with those who perpetuate it.
Yeah, we all know the the government is in crisis due to the special interests. blah, blah, blah That's because people keep voting the same guys into office. Big deal, that's life and it's always been there. Prior to government intervention in the housing market in recent years the system worked well. You busted your butt for a decent house and you rented until you could afford the down payment. You didn't lie about your income, sign a contract and when YOU changed the conditions, complained that it was unfair when things went south. The fact remains that a legal contract was signed and everyone knew or should have known what that paper said. Now to come back and say I didn't know doesn't make it my problem. It becomes my problem when this fraud - remember they lied on the loan application - affects my retirement 401K and it has since many retirement funds are bundled in real estate. My hope is that no one ends up in jail over this except for those in Congress who wanted to be all things to all people. Lisa