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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

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