Oh No, Now The Government Is To Be The Insurer Of Last Resort
Tuesday, 16. September 2008, 03:42:04
Elaine Meinel Supkis in article World Stock Markets Crash relates that the US Government is going to be the insurer of last resort:
What we know about the last 35 years of easy, easy credit and how bankers loaded all this onto housing, I would be guessing that around 90% of the housing if not more, the houses destroyed this week had huge mortgages on them. And people won't pay for housing that can't be easily rebuilt. The US government handed out lots of easy money to New Orleans and the entire Gulf after the three major hurricanes of 2005.
This increased the US budget deficits which were titanic during the entire Bush regime's rule. But now, before the hurricane, the US was half a trillion in debt. It can't just go another half a trillion to pay for the many billions in damage to Houston and the Gulf communities. Some of which were totally wiped out to the foundations. And of these, NONE will pay back their mortgages since the US government is the only insurer in case of hurricanes
What we know about the last 35 years of easy, easy credit and how bankers loaded all this onto housing, I would be guessing that around 90% of the housing if not more, the houses destroyed this week had huge mortgages on them. And people won't pay for housing that can't be easily rebuilt. The US government handed out lots of easy money to New Orleans and the entire Gulf after the three major hurricanes of 2005.
This increased the US budget deficits which were titanic during the entire Bush regime's rule. But now, before the hurricane, the US was half a trillion in debt. It can't just go another half a trillion to pay for the many billions in damage to Houston and the Gulf communities. Some of which were totally wiped out to the foundations. And of these, NONE will pay back their mortgages since the US government is the only insurer in case of hurricanes
WIDGETIZE