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Apparently, as a result of the housing crisis, those stuck with hyperinflated adjustable rate loans have been resorting to putting it on plastic.

Now that the easy money in home mortgages is all but over, consumers may soon be caught in a financial squeeze with their credit cards.

That's the worry among some economists and credit counselors as home lending has shifted abruptly into low gear this summer. That leaves homeowners owing big sums to Visa or MasterCard without an important escape hatch -- the ability to pay down the plastic by dashing off a check from their home equity line of credit or rolling the debt into a new, bigger mortgage.

"You're not going to be able to get that mortgage loan. You'll be stuck with the higher interest credit card debt," warns Carl Steidtmann, chief economist with Deloitte Research. "We will have to live within our means. I know it's a troubling phenomenon. But we're not going to be able to spend at levels well above our income levels."

Fucking peasants, why won't you just accept your station in life.  There's no discount window for you.

Jubilee anyone?

These "captains of industry" think that they've got everything under control.  After all the market is now running the show.   They think that they are immune to the double movement, but we've created a situation in my country where millions of people are on the verge of being homeless, robbing Peter to pay Paul with credit cards, and are being trapped beneath mountains of debt from which they will never escape.  It's a slightly hipper version of sharecropping and slavery before that.

Instant karma's gonna get them though.  They must be closet Marxists, because they've exposed the unequal nature of socially disembedded markets.  And in the end, society will not committ suicide.  The subordination of the market to social needs will either come from peaceful reform, or there will be a revolution.  Social democracy or fascism lies ahead, liberalism is dead in the long run, it's a question of what brings the market back into into the realm of social reality.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Aug 26th, 2007 at 01:21:39 PM EST
 The subordination of the market to social needs will either come from peaceful reform, or there will be a revolution.  Social democracy or fascism lies ahead, liberalism is dead in the long run, it's a question of what brings the market back into into the realm of social reality.

Nice one MfM.

I think that the "information revolution" is what makes Fascism unenforceable, actually, even though some see it as ENABLING Fascism.

(a) there are a lot more of "us" than there are of "them", and "we" are connected in ways we never used to be (eg ET);

(b) the "cock-up" theory - ie "they" are just effing useless, since if "they" were truly competent then "they" would be with "us".....

As for Social Democracy, well yes, but not Democracy as we know it, Jim, but new forms of "participative" democracy, as opposed to the current "representative" bollocks.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Aug 26th, 2007 at 01:48:50 PM EST
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I'm supposed to be reading through a book about the hundreds of different definition of democracy right now.

As you say elections are neccesary but not sufficient, there's something deeper.

It's been an interesting week for me.  In a good way.  Sometimes I have these epiphanies at dawn where my things suddenly exist afloat in my stream of conscisiouness.

Like there's thixs distinction between negative libert, the freedom from, and positive liberty, the freedom too. And prior to 1914 you basically had positive and negative democratic systems emerging in Europe.  The UK being an example of a negative system, late Imperial Germany a positive one.

Although there was a dearth of civil liberties in the German state, as a practical matter, German democracy of the period was much more inclusive than that in Britain.  Of course the German Imperial government was also less constrained by the decisions of their parliament than Britain, but regardless the franchise was wider in Germany than Britain.  

Further, while British workers faced terrible uncertainty, German workers had a far more extensive safety net in place.  They had the right to participate, and they had a certain level of economic security, but they had nothing like the civil liberties of the British.

One wonders whether the destruction of developing system in pre war Germany is not humanities loss, in the sense that there was an organic evolution into truely social democracy, that existed no only formally, but at a substantive level.  The movement towards democratic rights in the firm being a principal example of this.  Naphtali would take this further in the interwar period, but here in the predecessors to the works council you had an institution that defused class conflict within the firm.

What might have been?

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Aug 26th, 2007 at 02:11:46 PM EST
[ Parent ]

"We will have to live within our means. I know it's a troubling phenomenon. But we're not going to be able to spend at levels well above our income levels."

That's been the truth for years - it's been hidden by making debt incresingly easy and cheap - a crazy double or quits on the back of average Americans, which had the advantage of hiding that revenues were not keeping up with expenses.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sun Aug 26th, 2007 at 02:38:31 PM EST
[ Parent ]
We will have to live within our means. I know it's a troubling phenomenon.

Seriously WTF. This is even more stupid than the lead&poison stock babe.

"Troubling" that you can't spend more than you earn? I mean. Seriously. Economy 101? Basic math?

But we're not going to be able to spend at levels well above our income levels.

You figured that out now?

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Sun Aug 26th, 2007 at 02:44:49 PM EST
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Seriously WTF. This is even more stupid than the lead&poison stock babe.

"Troubling" that you can't spend more than you earn? I mean. Seriously. Economy 101? Basic math?

They've run out of bread and circuses, now the peasants are catching on to the scheme.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Aug 26th, 2007 at 03:33:36 PM EST
[ Parent ]

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