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"While not holding the value they once did, they're certainly not worth half of what they once were. Not to mention that it's the financial institutions/investors who hold them that have been taking the losses, not the goverment."
Give it a few more years and they will be half. There is a concept called supply and demand.
Stagnant wages, high unemployment, inflation, currency devaluation to name a few
are going to put a squash on the demand. Supply is already at an all time high, coupled with a new wave of foreclosures from 5yr ARM resets and unemployment will push supply
through the roof.
And we as tax payers are taking the loss. In the form of higher interest rates, bank bail outs, inflation due to printing money to bail out said banks...
Doom and gloom? Possibly, nothing is ever too big to fail.
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