Thursday, December 8, 2011

Foreclosures, The American Economy, Like Israel's During HyperInflation

Nobody can deny that the American economy is awful.  One of the reasons is that banks and mortgage companies have been making it too easy to get loans.  There's some sort of "flexible," think of rising yeast dough, mortgage payments, aka adjustable rate mortgages.  People have been ending up paying more than they can afford and end up losing their homes to the bank/lender.

During Israel's hyperinflation, people found themselves owing and paying more on their mortgage than their homes were worth in the sinking economy.

Dry Bones is right again.

You can't accurately budget when payments and expenses keep rising, and income is stable or falling.


Obelix said...

Which means that in 30 years, nothing has changed

Batya said...

the Israeli shekel is now stronger than the US dollar, as is the Israeli economy