Monday, October 17, 2011

We're in a depression. No one is saying it but its true.

Loren Thompson took time off from the usual discussions of defense issues to post this startling fact....
The Global Works Foundation reported a startling statistic last week. Between 2007 and 2011, the equity that U.S. families had in their homes declined from $12.9 trillion to $6.2 trillion. In other words, 52 percent of all home equity in the U.S. disappeared over the last four years.
That's freaking insane.

A drop of over 50% in home value in four years? 

Even counting inflated home prices that cutting into the muscle.  The funny thing about this financial crisis is that no has called it what it is. 

Its globalization unwinding.

The bailouts are governments worldwide attempting to keep a flawed system in place.

Until economist stop lying about our current economic situation.

Until our legislative and executive branch man's up and deals with the situation.

Then you can bet that this 'occupy wall street' is going to be a tempest in a teapot. 

2 comments :

  1. It's not a 50% decrease in home values, it's a 50% decrease in people's equity in their homes. The average person doesn't own their home outright.

    ReplyDelete
  2. the results are the same. homes were over valued. if the value decreased by 50% or the equity it still means that Americans have lost a ton of money and this house of cards known as globalization is dead.

    the problem with the whole scheme was that the Chinese people did not become major consumers replacing Americans. if they had then this would not be a problem. we would eventually be exporting goods to them. it didn't and since the world is still depending on US consumers to support the global house of cards, this thing is about to fall on itself.

    Thoreau was right. you can call me a tinfoil hat wearer but this spells serious trouble to me.

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