Foreclosures on home mortgages in the US in July were up 93% on the prior year. Frankly I am tired of all of the news focus of the impact of this on the banks and lenders. The problem for them is simply one of liquidity. Ultimately they will recover some or all of their risk after the repossessed property is resold. The executives of these companies will still receive their 6, 7 and 8 figure bonuses, live in their non-repossessed homes and drive their expensive, foreign cars. They will live well and retire early if they so wish. They will holiday in Europe, the Caribbean or on expensive cruises. They will dine in expensive restaurants and drink vintage, imported wine and lovely old single malts. Their children will go to private schools and university. American life will be good.
The true tragedy and pain will be suffered by the hundreds of thousands, perhaps more, of people who will have lost their homes, their savings, their creditworthiness. This is the real story. This is the tragedy. There will be divorces and broken homes as a result. There will be alcohol and drug abuse as a result. There will be violence as a result. There will be death as a result.
So fuck the stories about the banks, the bankers and the costs of credit and think about who the true victims are. Just the once.
The true tragedy and pain will be suffered by the hundreds of thousands, perhaps more, of people who will have lost their homes, their savings, their creditworthiness. This is the real story. This is the tragedy. There will be divorces and broken homes as a result. There will be alcohol and drug abuse as a result. There will be violence as a result. There will be death as a result.
So fuck the stories about the banks, the bankers and the costs of credit and think about who the true victims are. Just the once.
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