Yes, creative journalism. I read that white paper some time ago and thought "this" version was simply diluted and void of formulas but you're correct, there appears to be an agenda.
i don't have any financial degree or even basic knowledge, but, imo- if hyperinflation will strike US, all those people, who bought/refinance houses today,at very low fixed rate will be in very good position and actually will benefit from it. they have hard asset and they paying @5-7% rate, while current inflation let say 20-100% a year.. if hyperinflation strike,one can pay to the bank for house within a year or couple monthly salaries. banks, the ones, who will be fu**d. but on other hand-i don't think, they let this happend..i'm wrong? Thank you!
Well, for one thing, the bank can call your loan. If they still own it, that is. Most probably your mortgage was sold to gov "sponsored" companies like Fannie Mae.
I agree BOB. Those who did not buy home during the last 4 years of the mad rush, will be ok. Many are starting to look now, with better home prices and lower interest rates. Interest rates will be cut close to Greenmans. days. Hyper inflation will not hit the US like it did in Weimer Germany. There is still plenty of Cash liquid individuals in the country. The people who are going to get killed are those who are extended beyond their means, period. No if and or buts about it. Between now and 2020, the US will have one of the biggest Transfers of Wealth, so to speak. If your middle class, extended beyond your means......your finished. Only a matter of time. This summer is going to see the biggest round of layoffs since the 70s.
i see..i never apply to any loan or mortgage, so I'm not familiar with their terms\procedures. all of them can be called by the bank? i'm talking about 15-30 years fixed mortgage. Thank you!
no they cant be called. in a hyperinflation it is true that if you have real estate you will see an increase in value but interest rates will rise to a point where they compensate for the risk.
So some knowledgeable person elaborate on how one hedges their wealth for this doomsday scenario other than having no debt ! How do you keep your cash nestegg from loosing its value>>>do you get short the US dollar when you belive this is all about to go down? Do you buy and physically hold other currency like EUROS or the chineese currency?? In the financial meltdown will contracts in the market actually be honored if one was on the right side of the trade?? (short the dollar)??
Yes, a mortgage, like any other loan, can be called, but it is very unlikely: http://www.mortgageporter.com/reportingfromseattle/2007/08/question-of-the.html