AuthorTopic: Deflation Doom  (Read 552 times)

Offline RE

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Deflation Doom
« on: April 19, 2014, 09:01:14 PM »

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Published on the Doomstead Diner on April 19, 2014



Snippet:


…What the CBs and Financial Pundits like Ambrose Evans-Pritchard are TERRIFIED by now is apparent DEFLATION through numerous of the micro economies throughout Eurotrashland. Prices are FALLING! Horrors! Even in SWEDEN prices are falling! This really gets nasty in the world of Real Estate, because falling prices put many McMansion “Owners” underwater, where they owe more than the box is worth on the market. Combine that with defaults and foreclosures (which actually are the cause of the falling prices) and banks get stuck with a lot of White Elephants they can’t sell.


To solve THAT problem, the Cbs start offering up lots of low interest money to the well connected to go buy the junk and keep the prices propped up, leading to Hedge Funds like Blackrock getting into the rental bizness, which generally is a nightmare to run….


For the rest, listen to the RANT!


RE


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