[lit-ideas] Was the Housing market like a Ponzi scheme?
- From: "Lawrence Helm" <lawrencehelm@xxxxxxxxxxxxxx>
- To: "Lit-Ideas " <Lit-Ideas@xxxxxxxxxxxxx>
- Date: Mon, 5 Sep 2011 21:21:00 -0700
Jack Sprat wrote, "The mortgage market was not a Ponzi scheme. It was
simply handing out money to anybody with a pulse, whether they had a prayer
of repaying it or not. A Ponzi scheme borrows from Peter to pay Paul and
borrows from Paul to pay Harry and borrows from Harry to pay Susie until it
runs out of people to collect money from. Then it collapses, as it always
does."
I used the expression a "sort of Ponzi Scheme. Perhaps that wasn't clear.
I meant "like a Ponzi Scheme - not that it was the same thing but like it."
The following people say something similar:
http://daviddegraw.org/2011/07/this-is-what-a-collasping-ponzi-scheme-looks-
like-housing-market-headed-off-a-cliff-as-a-shocking-10-8-million-mortgages-
at-risk-of-default/ "
This Is What A Collapsing Ponzi Scheme Looks Like: Housing Market Headed Off
A Cliff As A Shocking 10.8 Million Mortgages At Risk Of Default"
http://www.bergenjerseyforeclosures.com/blog/info/entry/the_housing_market_w
as_a "the Housing Market acted like a Ponzi Scheme."
http://finance.yahoo.com/blogs/daily-ticker/housing-fix-end-government-subsi
dy-ponzi-scheme-says-184750774.html "Housing Fix: End the Government's
Subsidy 'Ponzi Scheme,' Says NYU Professor"
http://www.independentaustralia.net/2011/business/the-government-run-austral
ian-property-market-ponzi-scheme/
"The Australian housing market is a Government run Ponzi scheme set up to
advantage governments, banks, developers and the real estate industry at the
expense of ordinary Australians."
http://my.firedoglake.com/tucsonrobert1/2011/07/27/the-u-s-housing-market-wh
at-an-imploding-ponzi-scheme-looks-like/ "The U.S. Housing Market. What an
Imploding Ponzi Scheme Looks Like."
I'm surprised Jack can't see the similarity, but then he hasn't said that
much about himself so maybe I shouldn't be surprised - that is, at this
point I have no idea what he knows and what he doesn't know, but I'm
learning.
Lawrence
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