And all of this is in contradiction to the numbers coming from the Fed and the media about the actual effects of the housing slump and rising prices. The Fed explains that there is low inflation by the use of an absurd analogy. This assumes that consumers, when they can not afford the increased price of goods they usually purchase, will settle for a similar item of lesser value. Since they spend the same amount of money for substantially similar goods, there is no inflation. So, prices rise (isn't that inflation? ) and, instead of paying the higher price, consumers buy something of lesser value because their incomes are not keeping pace with the rising costs. But, precisely because the consumers can not afford the higher prices, there is no inflation! Brilliant! Did we mention that this is an absurd explanation for prices of goods that are clearly rising?
And now home values are dropping. Some foreclosed homes in Michigan are selling for around the price of a good used car. But are these even deals? And who are they great deals for? Do we want banks and corporations owning large parts of the country, not renting and not selling the homes and continuing to loosen and tighten the money supply in order to keep grabbing more properties every few years? Homeowners in foreclosure now need as many options as they can to stop foreclosure, and the newer lending guidelines are pushing many of them out of the range needed to qualify for a regular refinance or a foreclosure loan. So the massive transfer of wealth from homeowner to bank keeps going, one hundred-thousand dollar asset at a time.
The banks control the money. More and more, the banks are controlling property, as well. By determining who gets the money, banks can determine who is able to own property and who is not. They can decide which businesses qualify for a loan and which will never be opened or go out of business, thereby outlining large areas of the country that will be developed economically and other areas that will receive no investment.
So, don't blame yourself entirely for being faced with foreclosure. It seems that the whole banking system was pretty well designed to get you to the point of taking out a huge loan, not being able to pay it, and having the property transferred from you to the bank. Property used to be transferred from homeowner to homeowner, as one sold and one bought, but now, with banks controlling the enormous supply of money, consumers are left to fight for the few remaining scraps of cash that are still being passed around and not fed into the banking system as interest payments on loans that will most likely never be paid back. And homeowners that need to stop foreclosure before they see their home become part of the royal empire of a global banking lord -- who are you going to trust to help you?