On Fri, Oct 7, 2011 at 4:44 PM, Tom Pall <[email protected]> wrote:
> On Fri, Oct 7, 2011 at 3:31 PM, richardwillytexwilliams < > [email protected]> wrote: > >> >> >> Denise Evans: >> > This helps to show that characterizing those without >> > jobs or those struggling to survive on low wage jobs >> > as "ragamuffins and malcontents" is far too narrow >> > in scope... >> > >> "American households levered a $6 trillion net inflow >> of foreign savings during the decade 1998 through 2007 >> into a bubble that benefited them far more than it did >> Wall Street. >> >> The impact of the bubble on the household balance sheet >> exceeds the growth in real-estate assets, moreover, >> because most small business expansion followed the >> housing bubble..." >> >> Here's the story of the People's Ponzi scheme in a nutshell: >> http://tinyurl.com/5svylmb >> >> > So very well put. Thank you for this article. The municipalities were > swimming in revenue so much that the Austin, TX chief of police, just > recruited away from Atlanta, threw a hissy fit when he flagged down what he > thought was an APD car and it turned out it was just another white car. The > police chief ordered all APD cars to immediately be repainted to black and > white, the proper color for police cars. After that, he entered into a > bidding war between the City of Austin and Dallas. Dallas won the bidding > war and he went to work there. God bless and keep him. > The article did not mention the home equity bubble, which went on for so long. As homes appreciated, they were used as collateral for loans. People were buying big ticket automobiles, taking lavish vacations, making massive home improvements, like $20K-$30K kitchen renovations. Not to worry, the home improvements would make the houses appreciate even more. That, plus the "natural" appreciation and the ability to refi every 6 months turned each homeowner into their very own Ponzi scheme. Indeed, those occupiers need to meet the enemy. The enemy was their Ponzi scheming parents. Indeed finance needs to be restructured. But so does the sense of entitlement. Money for nothing and your kicks for free.
