Comments on: The Greatest Heist of the Century: Stealing and Mortgaging the United States’ Future. http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 30 Aug 2008 05:21:29 +0000 http://wordpress.org/?v=2.2.2 By: War Gold http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-6599 War Gold Wed, 23 Jan 2008 17:51:59 +0000 http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-6599 Whats the ratio of debt to asset like? That would be very interesting to know in light of this. Whats the ratio of debt to asset like? That would be very interesting to know in light of this.

]]> By: stu mann http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3036 stu mann Fri, 30 Nov 2007 04:30:48 +0000 http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3036 keep in mind, housing is the basis for the money supply for China to grow at a 10% clip, the global money supply also had to, meaning, housing globally had to explode. since half the world doesn't count, the only way this could be achieved is 1) ponzi debt schemes, ie, derivatives, basically extending the value of the underlying capital; 2) over value existing housing & 3) building like mad until there's a Walmart on every corner and the typical American now inhabits twice the floor space of their parents. the problem - 1) and 2) are going backward, meaning 3) won't grow, meaning, no more 10% growth in China, meaning a hell of a lot more trouble than just subprime. keep in mind, housing is the basis for the money supply

for China to grow at a 10% clip, the global money supply also had to, meaning, housing globally had to explode. since half the world doesn’t count, the only way this could be achieved is 1) ponzi debt schemes, ie, derivatives, basically extending the value of the underlying capital; 2) over value existing housing & 3) building like mad until there’s a Walmart on every corner and the typical American now inhabits twice the floor space of their parents.

the problem - 1) and 2) are going backward, meaning 3) won’t grow, meaning, no more 10% growth in China, meaning a hell of a lot more trouble than just subprime.

]]> By: David http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3012 David Wed, 28 Nov 2007 21:23:35 +0000 http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3012 The thing that really scares me is that we are quickly reaching the point of no return. In that I mean that we are so quickly consuming our resources that soon we will reach a point that if we do not find alternate energy sources like nuclear fusion before the civilization collapses we may never get the chance again. Here is my thinking 1) It takes a certain amount of hydrocarbons to allow civilization to develop from pre-industrialized to industrialized. Without oil our standard of living would be much worse. 2) Oil and coal are finite resources and we are quickly using them. 3) Populations tends to grow exponentially if not kept in check by some outside source (predation, disease, etc) until it collapses. So if we use all the hydrocarbons up on this cycle by our massive overconsumption the next cycle will be hydrocarbon poor and not allow us to develop any further then we are now, and maybe not even get this far. I know this is pretty doom and gloom, but no civilization in history has persisted forever. And almost all collapses of civilizations in the past can be tied to resource depletion in some fashion. I think we are living on borrowed time on the memory of past greatness. Much like Rome when the Barbarians came, our greatness is already gone, but we don't want to admit it. The thing that really scares me is that we are quickly reaching the point of no return. In that I mean that we are so quickly consuming our resources that soon we will reach a point that if we do not find alternate energy sources like nuclear fusion before the civilization collapses we may never get the chance again.
Here is my thinking
1) It takes a certain amount of hydrocarbons to allow civilization to develop from pre-industrialized to industrialized. Without oil our standard of living would be much worse.
2) Oil and coal are finite resources and we are quickly using them.
3) Populations tends to grow exponentially if not kept in check by some outside source (predation, disease, etc) until it collapses.

So if we use all the hydrocarbons up on this cycle by our massive overconsumption the next cycle will be hydrocarbon poor and not allow us to develop any further then we are now, and maybe not even get this far.

I know this is pretty doom and gloom, but no civilization in history has persisted forever. And almost all collapses of civilizations in the past can be tied to resource depletion in some fashion. I think we are living on borrowed time on the memory of past greatness. Much like Rome when the Barbarians came, our greatness is already gone, but we don’t want to admit it.

]]> By: js http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3010 js Wed, 28 Nov 2007 18:24:28 +0000 http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3010 My dad was a kid in the depression and he did fear stocks. He had kids quite late in life so I'm a generation Xer. I doubt my dad ever put a penny in stocks! Stocks were "gambling", stocks were to be avoided etc. Afterall stocks had crashed to nearly nothing in 29 ..... In my view stocks were just the particular locus of bubbleconomics back in the 20's. Nowdays stocks may be overvalued, but the ultimate locus of the bubble was housing, of course. People bought stocks on ridiculous margins in the 20's. People bought houses with interest only and negative amortization loans a few years ago. Same old, same old. My dad's retired now, and him and my mom who is somewhat younger have most of their money in cash. OMG, they will never realize what they are doing to cash!! The Fed is turning dollar based safe havens into fricken tiolet paper and fast!!! It doesn't help to live too long as a member of the "greatest generation". The leasons you learn in the first part of your life as a kid (stocks are gambling, cash and government bonds are safe) may well mean you eat cat food at the end of your life (when Ben dumps cash out of helicopters). My dad was a kid in the depression and he did fear stocks. He had kids quite late in life so I’m a generation Xer. I doubt my dad ever put a penny in stocks! Stocks were “gambling”, stocks were to be avoided etc. Afterall stocks had crashed to nearly nothing in 29 …..

In my view stocks were just the particular locus of bubbleconomics back in the 20’s. Nowdays stocks may be overvalued, but the ultimate locus of the bubble was housing, of course. People bought stocks on ridiculous margins in the 20’s. People bought houses with interest only and negative amortization loans a few years ago. Same old, same old.

My dad’s retired now, and him and my mom who is somewhat younger have most of their money in cash. OMG, they will never realize what they are doing to cash!! The Fed is turning dollar based safe havens into fricken tiolet paper and fast!!!

It doesn’t help to live too long as a member of the “greatest generation”. The leasons you learn in the first part of your life as a kid (stocks are gambling, cash and government bonds are safe) may well mean you eat cat food at the end of your life (when Ben dumps cash out of helicopters).

]]> By: John B. http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3009 John B. Wed, 28 Nov 2007 17:50:33 +0000 http://www.doctorhousingbubble.com/the-greatest-heist-of-the-century-stealing-and-mortgaging-the-united-states-future/#comment-3009 Excellent article confirmed by charts. Re: exports, I read we export our old appliances to China and residences of small villages dismantel them for recycling and resale of useable material. I understand this effort is contributing to the pollution in the country. I guess this is the "PRODUCT CYCLE" economists discuss (made there and returned there) Excellent article confirmed by charts. Re: exports, I read we export our old appliances to China and residences of small villages dismantel them for recycling and resale of useable material. I understand this effort is contributing to the pollution in the country. I guess this is the “PRODUCT CYCLE” economists discuss (made there and returned there)

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