Growth for the sake of growth is the ideology of the cancer cell. Edward Abbey

29 May 2007

mortgage debt - the new road to serfdom?


I work in order to pay for a roof over my head, food, transport and so-called security eg medical aid, insurance, all that crap.

But I've been wondering what it would be like to not have a job.

Please note, I said not have a job. I didn't say not work, which is something entirely different.

I want to work, but not for a boss and not for money. I want to work to grow food, make things, create things, give back to the land and just for fun, but working to pay a home loan is just plain sad.

An acquaintance pointed me to an article titled "mortgage debt - the new road to serfdom" subtitled: an illustrated guide to the coming real estate collapse. It was published in harpers magazine last year and refers specifically to the US where house prices are soaring, more people are signing up for mortgages in order to secure "wealth" later on in life, but indications are that the property bubble will burst ... eventually.

I can't help but think similar trends are occuring here in SA. Only time will tell, but it seems a huge waste of time to sit in an office for 20 years in order to pay off a home loan.

Now how do I get out of this mess, hmmm?

Anyway, here's a brilliant quote from the article:

"More people owe more money to banks than at any other time in history. And that's not just in terms of dollars—$11.8 trillion in outstanding mortgages—but also as a proportion of the national economy. This debt is now on track to surpass the size of America's entire gross domestic product by the end of the decade."

it goes on to warn that:
"Even that huge debt might not seem so bad, what with those huge capital gains beckoning from out there in the future. But the boom, alas, cannot last forever. And when the growth ceases, the market will collapse."

and finally:
"when a business cycle turns down, debtors cannot pay, and so their debts are wiped out in a wave of bankruptcy along with all the savings invested in these bad loans."

Have a beautiful day, all you beautiful people ... oh and don't forget your monthly repayments!

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