morekaos
Well-known member
What she describes here is a classic "bear trap"
http://www.guardian.co.uk/commentisfree/2013/may/29/economic-recovery-not-real
Don't be fooled by the false economic recovery
We all want to believe a recovery is here, but indicators are that it's not. We're getting swindled again by banks and politicians
...Then, last month, three major banks, including Citigroup and Wells Fargo, halted all their sales of homes in foreclosure; this also reduced the supply of homes on the market. The reduction in housing supply, then, is largely artificial, designed by the banks and institutions that hold thousands of houses and thus have the most to gain from higher house prices.
The result is what looks like a housing recovery to the rest of us, but is, in fact, something of a trap. Fitch, the ratings firm, issued a warning that the alleged recovery in housing is moving too fast and could reverse.
....A recovery allows real estate agents and banks to tell Americans that they can't borrow money for the home they want, that they can't participate in the housing market, while wealth private investors scoop up as much as they can. A recovery allows lawmakers to pretend that their destructive policies of deficit cutting and austerity were productive, rather than destructive.
A mythical recovery, in short, gives cover to a lot of irresponsible people hoping that Americans won't look behind the curtain.
There is a momentary discomfort in realizing that the recovery is weak. When the absurd illusion of a "better economy" is gone, lawmakers and CEOs may be forced to stop believing in the myth of a good economy and actually start working to create the reality of it.
http://www.guardian.co.uk/commentisfree/2013/may/29/economic-recovery-not-real
Don't be fooled by the false economic recovery
We all want to believe a recovery is here, but indicators are that it's not. We're getting swindled again by banks and politicians
...Then, last month, three major banks, including Citigroup and Wells Fargo, halted all their sales of homes in foreclosure; this also reduced the supply of homes on the market. The reduction in housing supply, then, is largely artificial, designed by the banks and institutions that hold thousands of houses and thus have the most to gain from higher house prices.
The result is what looks like a housing recovery to the rest of us, but is, in fact, something of a trap. Fitch, the ratings firm, issued a warning that the alleged recovery in housing is moving too fast and could reverse.
....A recovery allows real estate agents and banks to tell Americans that they can't borrow money for the home they want, that they can't participate in the housing market, while wealth private investors scoop up as much as they can. A recovery allows lawmakers to pretend that their destructive policies of deficit cutting and austerity were productive, rather than destructive.
A mythical recovery, in short, gives cover to a lot of irresponsible people hoping that Americans won't look behind the curtain.
There is a momentary discomfort in realizing that the recovery is weak. When the absurd illusion of a "better economy" is gone, lawmakers and CEOs may be forced to stop believing in the myth of a good economy and actually start working to create the reality of it.
