Sunday, May 4, 2008

Foreclosure Rage: (former) homeowners take out their anger

Foreclosed homes are being damaged at a high rate as homeowners take out their anger on houses before they are forced to move out, increasing the costs for the banks that take back ownership (because they have to sell at a lower price as the new buyer has to pay for repairs.

Is this just another symptom of an increasingly irresponsible society or is it justified? Certainly actions such as this are not justified, and we are all responsible for our own actions.... Private property rights, free trade, sound money and the rule of law are the foundation upon which our economy is built.

Now put yourself in the shoes of an economically unsophisticated person who listened to Alan Greenspan and other "experts" tell them that adjustable rate loans were a great thing and that a collapse in housing prices was unlikely....

Financially unsophisticated people may do the research necessary to make an informed decision and take the advice of so called "experts" and buy a house which later collapses in value. These projects gone bad then become "malinvestments." The real root cause of most of our economic ills is the source of these malinvestments - the flawed monetary and political frameworks that we live and operate in, and the effects they have had on our society over a long period of time - undermining the very foundation of our economy. This has especially pronounced since the end of the Bretton-Woods currency regime in the early 1970's.

The boom-bust cycle and monetary inflations also affect society and the values that individuals hold internally and use to guide their decisionmaking. The Fed creates the booms and busts and the resulting malinvestments. But its not just malinvestments. The government and the banking system are joined at the hip -- Fed independence has become a joke (actually it always was). But the point is that our monetary system has effects that are far reaching. Understand and exploit these effects and you can make billionaire hedge fund type paydays....

2 comments:

  1. [...] homehelpnow wrote an interesting post today onHere’s a quick excerptForeclosed homes are being damaged at a high rate as homeowners take out their anger on houses before they are forced to move out, increasing the costs for the banks that take back ownership (because they have to sell at a lower price … [...]

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  2. Destroy your houses, do not listen to these morons, mercy will come from no where, take it into your own hands. Start the revolution.

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