As those who frequent these pages know, we are big fans of Sean O’Toole of Foreclosure Radar and Foreclosure Truth - his two premier sites.
Recently Sean has been addressing the issue of the “mising wave” of inventory in CA foreclosure sales - and whether or not it exists…
In response to his post, I made the following comment, his reply is below my comment:
Submitted by Becky on Sat, 08/29/2009 - 6:41pm.
Sean, I would submit to
Sean,
I would submit to you that the logic you apply to the thinking behind the Troubled Asset Relief Program and the idea that banks would fail without it is missing a larger view - one which is cogently and clearly expressed in this piece on Guns and Butter of August 26, 2009 with Dr. Michael Hudson. http://www.kpfa.org/archive/id/53994 I would be very interested to hear your thoughts on this interview and the larger, more disturbing picture it paints of what is truly going on in the world of banks, government and global finance.
The “new model” of debt as wealth and of global financial monopoly from the IMF and World Bank to the FED may at first seem extreme - but the clear examples of Iceland and Latvia are surely a warning bell to us all. I look forward to your comments - and ideas on how we shake the miasma of the mark to fantasy and endless default debt cycle which is clearly emerging all around us. If it is now truly more profitable for lenders to hold a default than to foreclose - then the world has turned on its head - which begs the question - How do we set it right side up again?
* reply
Submitted by Sean on Sat, 08/29/2009 - 9:56pm.
I was introduced to Dr.
I was introduced to Dr. Hudson’s work by my good friend Eric Janszen over at iTulip.com. Know that I credit Eric with having helped me not only decide that I needed to sell my real estate holdings just before the bubble burst, but also with helping me realize shortly thereafter that I should get moving on launching ForeclosureRadar.com.
I think more people should take the time to understand a lot more about the role and history of the Fed. Real estate investors should watch these players closely given their role in interest rates and inflation - both of which can significantly impact real estate investments.
A number of the economy blogs in my blog roll on the right are great places to start.
Tags: Bailouts, bank profits, Credit Bubble, defaults, FED, finance, financial policy, foreclosures, global finance, government, Guns and Butter, Michael Hudson
