Terrible, isn’t it, John?
Spot on, Bryan !
3) Most definitely! There are people saying this is simply a by-product of lending during boom times, but that’s nonsense. Banks have knowingly generated this real estate bubble, via easy ‘lending’ practices, creating money (and their super profits) against land price-inflated mortgages. I recommend reading Michael Hudson for corroboration. Hudson worked in Wall Street banking as a balance of payments economist, and he’s seen it all at the highest level. http://michael-hudson.com/
My questions to the banks are;
1) Are the banks borrowing funds from the Fed Reserve, BoJ and ECB at negative interest rates and using that funding to pay dividends to goose their stock price.
2) Are the banks restructuring mortgage repayments from principle and interest to interest only loans to lower monthly repayments of those who are mortgage stressed to hide defaults from oversees creditors.
3) Are the banks artificially raising property prices by inflating mortgages to increase their market capitalisation.
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