Housing decline

BLM:90 WHM:90 SMN:90 THF:90 WAR:90 DRK:90 RNG:90 PLD:90

The housing decline was due to two things. If there is a relationship between interest rates and housing then when housing starts go up, that is when people building houses build more houses, then the interest rate must go up. That's something predicted by economics. So banks lending this money to fund the housing increase should have less money to lend when a lot of new construction is begun. This keeps the value of money stable or in equilibrium.

As people buy less houses, then the interest rate drops, housing goes up and new loans can be made because of this.

With regulation this system works in a cycle, keeping the value of money stable while everything around it fluctuates seeking opportunity that invariably appears either in lower rates for people or in rates for banks.

So de-regulating money supplies say in the derivatives market, is a way for banks to forego higher priced loans by borrowing more money through a different place. So instead of having this money constrained, they have more to lend even though they shouldn't.

So if you are underwater and need air, you go up for air, take another breath and take time to become normal again before you go dive in deeper. And if someone selfishly drops you an aqua-lung, what are you gonna do give up the lung or go down deeper and get that lung? Yeah, you go for the lung. Sadly while all this is happening, you are getting used to more and more pressure and pretty soon you got new problems.

So meh, it's about as criminal as drinking too much. It's not wrong unless they catch you and sometimes it's not even that because it's a system. If it's set up that way then it's meant to work that way. Too bad for the rest of the world that has to find out the systems were faulty... too late.