Wednesday, June 17, 2009

Economic Misinformation about Falling Real Estate and Walking Away

Just read this blurb concerning housing: "If tens of thousands of these property owners who are 'underwater' decide to bail, South Florida would be hit with an economic crisis that will accelerate the decline in property values, cost thousands more jobs and could put hundreds of companies in jeopardy, economists, brokers and government officials warn. The scenario could re-accelerate the downward spiral in a real estate market that many hope may finally be reaching bottom and drag the broader economy down further. " [article here]

Balderdash and hogwash, all of it. This is the problem of a media that is controled by certain economic interests (the parasites): the news reflects only their worldview and perspective.

If you happen to be an economic parasite, yes, falling real estate is a big problem. For the vast majority of citizens, and for the economy as a whole, falling real estate prices is the best thing that could possibly happen.

Low house payments means more disposable income, which means more consumer spending. Low commercial rents means more profitable small businesses, and lower start-up barriers. All of which means greater productivity and more jobs.

Overall, the idea that low land prices somehow would hurt the economy is a total and complete lie. The only ones who benefit from high land prices are the parasite classes, and honest articles about real estate should declare this fact.

If we had a "HomeOwners Union", right now would be the perfect time to go on a mass mortgage payment strike, and sweep the feet out from under these economic parasites once and for all.

If you are currently underwater on your mortgage, you should be doing everything in your power to get out from under it, forthwith and posthaste. Unless there are some overriding personal reasons, perpare for evacuation. But not before extracting every last dollar out of your investment. Forget jingle mail: don't leave until the sherrif forcibly evicts you, and fight it every step of the way to maximize your returns. Forget your sunk costs, that is a psychological fallacy: the fact you have lost money in the past does not mean you should continue to throw good money after bad. Analyze your credit score rationally: your credit score is only worth a few thousand dollars, most likely. If you can save $50K by walking away, the hit to your credit will be worth it.

The banks are more than happy to milk you like a cow until you are dry as a bone. Don't fall for their propaganda and misinformation that would keep you in their cattle pen, also known as perpetual debt enslavement.

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