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Thread: How Long Until The Next Economic Depression?

  1. #31
    Good luck with shaming people into compliance. Strategic default is not a bankruptcy. The banksters are too greedy for such an event to affect the borrower for more than 3-6 months plus the person defaulting has probably no interest in borrowing for another 12-24 month. In the meantime they can rent, while feeling better their money are not going into a sinkhole. Another advantage of the default is it allows to live rent free for some time while the bank tries to figure out what to do.



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  3. #32
    http://www.usatoday.com/story/money/...ults/83555358/

    Turns out strategic mortgage defaults weren't really strategic

    One of the interesting things about the housing bust of several years ago — interesting in retrospect, not so fun at the time — was the many people who walked away from their homes voluntarily.

    "Strategic default" was the buzzword phrase to describe owners who simply defaulted on their mortgages based on declining values rather than an inability to pay. Their actions fostered a debate centered as much around ethical implications as the financial causes.

    A 2015 study, recently highlighted by Harvard's Shorenstein Center on Media, Politics and Public Policy, takes a much closer look at the types of homeowners who engaged in strategic defaults from 2009-2011. Many of the conclusions confirm what was widely assumed about defaults, but there are some surprising wrinkles.

    The research team, which included Federal Reserve economists as well as academics at UCLA and Arizona State, found that unemployment and falling home values make for a toxic financial cocktail, especially if mixed with little or no household rainy-day funds.
    A job loss, the researchers concluded, is probably the single biggest financial shock that can lead to a mortgage default. More than 40% of defaulting households who couldn't make payments were headed by an unemployed individual or one who went through a recent divorce or faced hefty medical expenses.

    Nevertheless, most financially distressed households didn't default, which the researchers said reflected the ability of many of these people to tap resources such as friends or relatives to tide them over. Even among unemployed households lacking enough savings to make even one monthly mortgage payment, more than 80% stayed current.

    "In other words, despite no income and no savings, most households in the group continue to pay their mortgages," the researchers wrote.

    Another intriguing issue was centered around families who could afford to keep paying their mortgages but chose not to do so. Despite a lot of media attention at the time paid to strategic defaulters, they were rare, according to the study. Fewer than 1% of households with the financial means to pay instead chose to walk away.

    "Most households in positions of negative equity with relatively high net worth choose not to default," the researchers wrote.

    The study largely confirmed that personal financial shocks lead to mortgage defaults — job losses in particular — without citing negative housing equity as an overriding factor. It also showed that many homeowners struggle to hang onto their homes when times get tough, perhaps longer than they should.



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  5. #33
    Yeah, Zippy, we get it. You should always repay your mortgage even if it is not in your best interest. Thank you for making sure we do not get any stupid ideas like asking the government for a bailout.

  6. #34
    For some it is about honor and pride and honoring commitments and contracts. Also as pointed out, defaulting can cost you more in the long run. Are you as good as your word? (you don't get a government bailout when you default).

  7. #35
    Quote Originally Posted by Chester Copperpot View Post
    HI devil, long time... anyway I dont mean a real boom .. but I do see a phony one coming, based on easy credit and debt. Go apply for some credit cards and youll see what I mean... Seems like lots of easy credit coming our way or being manufactured for us.. just my opinion of course..
    That sounds like helicopter money though, which is really just the last gasps of the global dollar standard. The banks are already pushing the super easy credit you describe, ironically at the same time they pluck earned money out of the economy. Offer the cheap stuff while stealing the valuable stuff...if that concept makes sense.

    eta: Deutsche Bank is almost down to 10 in euro. When it goes sub-10 hang on to your hats.

    Quote Originally Posted by Zippyjuan View Post
    For some it is about honor and pride and honoring commitments and contracts. Also as pointed out, defaulting can cost you more in the long run. Are you as good as your word? (you don't get a government bailout when you default).
    I'd like to know just how serious the Vatican is about this Jubilee

    So much more I could write in response to your post but it's late. I'll summarize instead. If the bankers are going to pay off old debt with cheap, new helicopter money/digits and then nationalize the Fed, "abolish" it for violation of law and repudiate said debt then why can't we?
    Last edited by devil21; 09-26-2016 at 02:59 AM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  8. #36
    26 Incredible Facts About The Economy That Every American Should Know Before The Trump-Clinton Debate
    http://www.zerohedge.com/news/2016-0...clinton-debate

    Are you ready for the most anticipated presidential debate in decades? It is being projected that Monday’s debate between Donald Trump and Hillary Clinton could potentially break the all-time record of 80 million viewers that watched Ronald Reagan and Jimmy Carter debate back in 1980. Many Americans probably hope to see some personal fireworks between the two nominees, but the two candidates have both expressed a desire to focus on substantive issues. There will likely be quite a few questions about the economy, and without a doubt this is an area where Trump and Clinton have some very sharp differences. The mainstream media would have us believe that the U.S. economy is in pretty good shape, and if that was true that would seem to favor Clinton. But is it actually true? The following are 26 incredible facts about the economy that every American should know for the Trump-Clinton debate…

    #1 When Barack Obama entered the White House, the U.S. government was 10.6 trillion dollars in debt. Today, the U.S. government is 19.5 trillion dollars in debt, and Obama still has several months to go until the end of his second term. That means that an average of more than 1.1 trillion dollars will be added to the national debt during his presidency. We are stealing a tremendous amount of consumption from the future to make the economy look much, much better than it otherwise would be, and we are systematically destroying the future in the process.

    #2 As Obama prepares to leave office, the rate at which we are adding to the national debt is actually increasing. During the fiscal year that is just ending, the U.S. government has added another 1.36 trillion dollars to the national debt.

    #3 It isn’t just the federal government that is on a massive debt binge. Total U.S. corporate debt has nearly doubled since the end of 2007.

    #4 Default rates on U.S. corporate debt are the highest that they have been since the last financial crisis.

    #5 Corporate profits have fallen for five quarters in a row, and it is being projected that it will be six in a row once the final numbers for the third quarter come in.

    #6 During the month of August, commercial bankruptcy filings were up 29 percent compared to the same period a year ago.

    #7 The rate of new business formation in the United States dropped dramatically during the last recession and has hovered at that new lower level ever since.

    #8 The Wall Street Journal says that this is the weakest “economic recovery” since 1949.

    #9 Barack Obama is on track to be the only president in all of U.S. history to never have a single year when the U.S. economy grew by at least 3 percent.

    #10 In August, the Cass Freight Index dipped to the lowest level that we have seen for that month since 2010. What this means is that the total amount of stuff being shipped around the country by air, by rail and by truck is really dropping, and this is a clear sign that real economic activity is slowing down in a major way.

    #11 Capital expenditure growth has turned negative, and history has shown that this is almost always followed by a new recession.

    #12 The percentage of Americans with a full-time job has been sitting at about 48 percent since 2010. You have to go back to 1983 to find a time when full-time employment in this country was so low.

    #13 The labor force participation rate peaked back in 1997 and has been steadily falling ever since.

    ...
    Source links, full list, and article on link at top.

    Everything is awesome!
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  9. #37
    #1 When Barack Obama entered the White House, the U.S. government was 10.6 trillion dollars in debt. Today, the U.S. government is 19.5 trillion dollars in debt, and Obama still has several months to go until the end of his second term. That means that an average of more than 1.1 trillion dollars will be added to the national debt during his presidency. We are stealing a tremendous amount of consumption from the future to make the economy look much, much better than it otherwise would be, and we are systematically destroying the future in the process.
    Congress, not the President determines spending. However, government spending has grown more slowly during Obama's presidency than anybody at least since Reagan. That is due in large part to the gridlock in Congress. The big bump in spending came with the 2009 budget during the economic crisis- and that was passed during and signed by the Bush administration.



    #2 As Obama prepares to leave office, the rate at which we are adding to the national debt is actually increasing. During the fiscal year that is just ending, the U.S. government has added another 1.36 trillion dollars to the national debt.
    FY 2016 budget deficit (the amount added to our total debt) was not $1.3 trillion but $616 billion. And again, Congress controls that. http://federal-budget.insidegov.com/l/119/2016-Estimate

    2016 Key Facts
    The U.S. government is estimated to collect $3.34T in tax revenues and spend a total of $3.95T in its 2016 budget, resulting in a deficit of $616B. The deficit is expected to be 3.3% of its total estimated GDP of $16.5T that year.
    Deficits have been falling (though up a bit this year).



    #12 The percentage of Americans with a full-time job has been sitting at about 48 percent since 2010. You have to go back to 1983 to find a time when full-time employment in this country was so low.
    They must be counting people who are not working as well. BLS reports that of those actually working, 121,492,000, 106,611,000 or 88% are full time (working at least 35 hours a week). http://www.bls.gov/cps/cpsaat08.htm

    #13 The labor force participation rate peaked back in 1997 and has been steadily falling ever since.
    Actually the decline has been going on since at least the 1970's for men- and the decline has not been as large as some charts may make it seem. It did continue to rise into the 90's as more women entered the labor force.



    Last edited by Zippyjuan; 09-26-2016 at 05:26 PM.

  10. #38
    The American Bankers Association recently warned homeowners about the consequences of strategic default, including the possibility of the bank obtaining a judgment to pursue the homeowner's assets, such as bank accounts, cars and investments.
    Debtor's prison.

  11. #39
    Quote Originally Posted by Anti Federalist View Post
    Debtor's prison.
    A person can be a prisoner in their homes (if they are fortunate enough to have one) if they are flat broke too. This world has become a Prison Planet.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  12. #40
    Quote Originally Posted by DamianTV View Post
    A person can be a prisoner in their homes (if they are fortunate enough to have one) if they are flat broke too. This world has become a Prison Planet.
    The scammy part is they don't own the home, the car, the bank account or the investments to begin with. Never have and never will. You can't buy anything with debt. Everything is hypothecated back to the bankers. They are all "registered" assets solely for the bankers to keep track of where THEIR assets are in case (when) they decide to foreclose.
    Last edited by devil21; 09-29-2016 at 01:41 AM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book



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