posted on Aug, 30 2007 @ 12:11 AM
The danger from a possible subprime mortgage collapse has nothing to do with people losing their homes. Big multi-national corporations don't care
if people lose their homes.
Do you know that most of the world is in poverty, with barely a hole to crawl into? Only 6% of the world lives like we do.
The danger of sub-prime mortgage collapse simply comes from interest payments not being paid and people foreclosing on their homes. A large part of
the economy is based on interest payments. Most people don't know this. That's why there is a credit rating system. Lenders and banks want to know
that you are responsible enough to pay back your debts, not so that you will give them back the money they lent you...it's so that you will give them
back MORE than the money they lent you. It is only then that people will invest in you., and your mortgage.
Yes. Take that last sentence literally. Large corporations have invested in your mortgage. Do you think your mortgage is sitting in the drawer of the
banker that gave it to you? You're wrong. It's been bought and sold, and grouped together with thousands of other mortgages, and turned into funds.
There are billions of dollars invested in those funds, from companies, and coutries betting on us, like you would bet on a horse at the track...They
are betting on the fact that you and I will pay our interest each month for the thirty years that we said we would. They've actually put money on
this bet. If you deviate any little bit from the "plan", if you pay less than you should, or even more than you should...you hurt their profits,
thus ruining their investment.
You are a piece of stock. You are part of a collective of debt, and if you have a mortgage, you've have been bought and sold. These funds that have
been created out of our mortages and credit card debts have no real value, just like the piece of paper your mortgage is printed on, or the house that
you live in. It's value is determined only by it's worth. If it becomes worthless, it has no value. Imagine if everyone stopped paying on their
interest. Forget your house, made of wood and cement. The mortgage, that important piece of paper, would have no value. The funds that are based on
the mortgages would have no value...And all of the billions invested in those funds, that were worth billions at the time of investment, are now worth
squat! Billions of dollars can be lost if people don't pay their debts!
Now do you understand the danger? Our economy is based on the continuous movement, grouping, ungrouping and liquidation of money. It's the blood and
lifeforce of our society. If you disrupt it's flow in any way, it could stop us at our heart.
I fear we are on the verge of an economic "heart attack."