- Joined
- Jul 28, 2023
- Messages
- 339
"based on bond broker fraud". And that isn't happening now? Do you even understand how the credit based system works? It fails BY DESIGN because that is the only way to actually keep the machine going. Corrections happens regardless of fraud, covid, or any other trigger event.Rhw
There was no correction to housing begin in 2008. Fraud primarily based on bond brokers were the reason for the rise on housing prices during the period leading up to 2008. When fraud is the reason for the rise, stating the housing market corrected is erroneous.
Today's current housing prices are not based on fraud, but based on (1)change in the value of the USD, (2) more demand than housing available, (3) private equity funds as a new, very powerful competitor for single family homes.
If a correction on housing happens it will be because of total collapse of the USD. And if that happens, housing may actually rise, not fall.
The reason the fraud was exposed is because millions of people were failing to make payments on their mortgages. "who doesn't play their mortgage" was what bankers were laughing about, and then it caught up to them, and the bonds and MBS's they created, failed, because they made promises that couldn't be kept in times of crisis. This is what is happening now, because the market has yet again, reached a similar position, where people can't afford to keep paying, and banks are trying to offload bad loans off their books.
I can't facepalm hard enough at how people believe over simplified lies.