Michael Hudson Quotes About Mortgages

• So, what people are actually left with to spend is maybe 25 to 30% of their income on goods and services, after paying taxes and after paying the FIRE sector (Finance, Insurance, Real Estate). Whether it's housing insurance or mortgage insurance. So there's an idea of distracting people. Don't think of your condition. Think of how the overall economy is doing. But don't think of the economy as an overall unit. Think of the stock market as the economy. Think of the rich people as the economy. Look at the yachts that are made. Somebody's living a lot better. Couldn't it be you?

  Michael Hudson

  Real, Pensamiento, Gente

  Fuente: www.counterpunch.org

• Most of these charges that people pay are economically unnecessary. There's no real cost behind them. There's no real value behind them. So, they're what the classical economist called empty pricing. Prices with no real cost value. What they called rent and fictitious capital. Capital claims on junk mortgage borrowers. The pretense is that all these debts can be paid but it's all fictitious, because everybody knows - at least on Wall Street everybody knows - that many debts can't be paid.

  Michael Hudson

  Muro, Real, Gente

  Fuente: www.counterpunch.org

• So we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages, credit cards, student loans, bank loans and other obligations
  that they have less to spend on goods and services. So markets shrink. New investment and employment fall off, and the economy is falls into a downward spiral.

  Michael Hudson

  Fall, Mean, People

  Fuente: www.counterpunch.org

• Hay dos definiciones de deflación. La mayoría de la gente piensa simplemente que los precios bajan. Pero la deflación de la deuda es lo que ocurre cuando la gente tiene que gastar cada vez más de sus ingresos para cargar con las deudas que ha acumulado: para pagar su deuda hipotecaria, la deuda de las tarjetas de crédito, los préstamos estudiantiles.

  Michael Hudson

  Correr, Pensar, Dos

  Fuente: www.counterpunch.org

• The current U.S. and Eurozone depression isn't because of China. It's because of domestic debt deflation. Commodity prices and consumer spending are falling, mainly because consumers have to pay most of their wages to the FIRE sector for rent or mortgage payments, student loans, bank and credit card debt, plus over 15 percent FICA wage withholding for Social Security and Medicare actually, to enable the government to cut taxes on the higher income brackets, as well income and sales taxes.

  Michael Hudson

  Fall, Cutting, Students

  Fuente: www.counterpunch.org

• For many people, the mortgages they took out before 2008 are so high that they would be better off walking away from their houses. That is called "jingle mail," returning the keys to the bank and saying, "You can have the house. I can buy the house next door that's just like this for 20% less, so I'm going to save money and switch." That's what someone like Donald Trump or a real estate investor would do. But the banks are trying to convince the mortgage debtors, the homeowners, not to act in their own self-interest.

  Michael Hudson

  Real, Walking Away, Keys

  Fuente: www.counterpunch.org

• El mito es que si suben los precios de la vivienda, los estadounidenses serán más ricos. Lo que realmente quieren los bancos -y detrás de ellos, la Reserva Federal- es que los nuevos compradores puedan pedir prestado el dinero suficiente para comprar las casas de los morosos hipotecarios, y salvar así a los bancos de sufrir más impagos de hipotecas.

  Michael Hudson

  Casa, Sufrimiento, Querer

  Fuente: www.counterpunch.org

• The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to walk away from the mortgages. That will save the from taking a loss on their junk mortgage loans.

  Michael Hudson

  Loss, People, House

  Fuente: www.counterpunch.org

• Now, suppose that a homeowner puts down only 3% of their own money or 3.5% for the FHA. That means if prices go down by only 3%, the house will be in negative equity and it would pay the homeowner just to walk away and say, "The house now is worth less than the mortgage I owe. I think I'm just going to move out and buy a cheaper house." So it's very risky when you have only a 3% or 3.5% equity for the loan. The bank really isn't left with much cushion as collateral.

  Michael Hudson

  Moverse, Significar, Pensar

  Fuente: www.counterpunch.org

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