Wednesday, July 01, 2009
Fresh Insight
The housing meltdown in the USA seen from another perspective: the overly generous mortgages offered to American lower classes were not designed to curry political favor with them. For those who followed he matter, it must have been obvious that these people would not return the monies lended to them and the whole mess was bound to end badly. The idea behind the mortgages was to create demand for houses, to generate work for the large building industry. Building is the main economic activity of the American working class, and while the housing boom lasted, they had full employment and took home good salaries. They could maintain families. Recession is here and they have no proper function in economy and no way to maintain families. They are dependent on their wives's service jobs and not very proud of it. This situation, if lasts, will lead to social patologies such a alcoholism and violence, a la Eastern Germany and Russia.
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6 comments:
Obama's coming to my town to endorse our corrupt governor. To Governor Corzine's credit, he comes to our Chabad house's Sukkah every year.
Well, something is something. Corrupt, but friendly to the Jews. Could be worse.
A lot of those working class people you write about were illegals, especially in southern California where so many of the houses were being built.
So the bubble created houses for illegals, which needed to built, and were built - by illegals.
So essentially the bubble benefited illegals, developers, bankers and others. Many of the mortgage brokers that made the loans were Hispanics, making them the children and grandchildren of illegals.
ha ha ha , look at that :
http://vdare.com/buchanan/090629_darwin.htm
Patrick J. Buchanan who is an obsessive Anti-israel is just a stupid raving creationist.
eyal,
You remind me of the closing sentence of a memorable film: "Nobody is perfect".
Marylin Monroe, Jack Lemmon, Tony Curtis.
I read Buchanan's article, I agree it is stupid, and it may be true that Charles Darwin was not a saintly perfect human being. Who cares? Evolution is out there working its work on everything alive.
Ronduck
Sure the housing bubble benefited illegals, among many others.
But illegals are a extremely powerless social class: it is not they that created the thing.
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