Easy Money.
To recap.
• Subprime lending/”No Doc” Loans allow people to buy homes they cannot afford. They use tricks like “Adjustable Rate Mortgages” and artificially-low introductory rates to get folks in the door.
• Credit creation and injection into the economy enables massive amounts of speculative real estate development to occur in advance of demand (Austin’s current story is condos, Condos, CONDOS!!!!)
• The entire US economy itself operates at a massive deficit. How does it pay for things? It borrows money from rivals like China. (William Greider hits this in “Market Orthodoxy is Breaking Down?” )
[youtube _8pLpI5rzKI]
The coolest part of 10%+ money supply growth annually will be the triumphant return of these bad boys.
With Grover Cleveland as “G”
James Madison
And Introducing Salmon P. Chase
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