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Showing posts from September, 2008

Free falling free market and McCain's message

When I looked around to buy a house in the land of opportunities during the last quarter of year 2005, I couldn’t help wondering about the apparent but glossed over disconnect between real estate prices and real buying power of average Americans. House prices spiked dramatically at the rate of 200 percent in less than a year. Mortgage lenders and developers sprang up everywhere. Having exhausted those with a credit history, they turned their attention towards the softer underbelly of the population - barely legal immigrants and job hopping victims of credit card vultures. To grant them entry into the brave new American dream, their benefactors provided an opening in the name of deferred principle and interest rates a.k.a sub-prime mortgage. In time reality set in - bills began to show up with their true numbers. Occupiers of the houses fled abandoning their unsolicited dreams.
The word spread rapidly. Foreclosure signs began to appear in neighborhoods. Soon everyone understood what Kat…