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Little does anyone here realize that soon it will be the standard mortgages which are the cause of all the woes.
The global asset market is correcting and houses that were worth 500,000 will shortly be worth 100,000 -- their actual value. A 500,000 dollar loan on a 100,000 dollar house = unbacked debt. Welcome to reality. Virtually every asset backed loan in the world is about to become an unbacked loan. Thus is the nature of an asset bubble caused by credit expansion.
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