Tuesday and the world of woe

Cold and star studded morning as we had our morning walk. Fox in the drive of the house 2 doors away, but little else to report.

The bosses were talking about the problems in the USA in the housing sector. Now being of American descendants my ears pricked up. What I gather is that people trying to get a roof over their heads and have a place to live with basic living requirements have, because of their background been poor or low credit risk. Then through less than honest advice they get on the property ladder and all is well until they find that the rate of interest starts to rise and other "small print" increases their debt beyond their earning means. Possessions start happening and then the only people to make from this are the banks and other financial institutes that backed it all. They still own the land and property yet leave the dwellings to decay rather than keep money coming in from the lender.

Who gains certainly not the borrower because they are now homeless, not the state or the government as they will bear the burden of the homeless in one form or another. My problems is that many of those house owners will have had dogs. Now with no home or backyard they will be on the streets to roam and be killed by traffic or by the state. To make matters even worse their bodies may well end up being processed into pet food.

There is a similar problem in the UK where people brought endowment mortgages which are now maturing only to find that they will not have enough money to pay off the mortgage. The mortgage brokers still get their percentage as commission and the mortgage lender has potential property worth many times the value of the endowment.
Who losses, the person who took out the endowment and most are now reaching retirement age as the endowment matures? They are having to borrow against the equity in the property AND GETTING IN MORE DEBT. People are making money out of this misery and at present they appear to be untouchable or unaccountable because the governments of both countries are afraid to take action to preserve the basic payout to pay up the mortgage or pressure the banks to accept some payment. The end result is the dollar is at an all time low and the economic repercussions are being felt around the world. The UK economy is slowing, house prices are slowing and Christmas is coming and no one has money to spend so production of seasonal items will be lost.

Oil is at a high, not because OPEC is cutting back, but because of speculation on the market based on US reserves, which are inaccurate. Who is making money? The people who are manipulating the market. Remember this happened to silver way before my time. One person started a chain reaction with silver until the bubble burst then silver went back to it's market value. Some lost but some made millions on what, a whim or serious manipulation of the fragile system of market forces.

Humans need to stop doing and concentrate on being. Why because in all reality do you think that there is actually enough money in the world to pay what everyone is owed. Of course there is not it's all based on credit. When enough people start to panic and take money out, like Northern Rock , in the UK. The Bank of England had to step in as there was not enough available cash. What a system. Little wonder it can be manipulated and causes so many financial problems for those who have no say in it.

Humans, seems many are just going through life paying for the wealth of the minority. No wonder they pay a premium to be entertained so they can loose themselves in another world for a while.

May the sun shine and the warmth touch your body. It's a blessing from above and it's free so enjoy. Until tomorrow take care.