Here's a specific set of things that will happen with the upcoming foreclosures:
Any fool can predict this. It was the same in the early 90's!
Sunday, March 25, 2007
Scorched Earth Policy
For the record, if I want to be an economic prognosticator, I need to make exceedingly exact predictions. (I wanna be "on the record.")
Here's a specific set of things that will happen with the upcoming foreclosures:
"Owners" will strip the place clean of instruments -- refrigerators, washing machines, dishwashers, toilets, bathtubs and the like.
All copper will be stripped (this is almost axiomatic!)
After that, the house may or may not be burnt down for insurance reasons.
The FBI and the media will be "shocked, shocked about the events."
The media will say, "We could never have predicted this."
Congress will be called upon, and get involved.
Any fool can predict this. It was the same in the early 90's!
Here's a specific set of things that will happen with the upcoming foreclosures:
Any fool can predict this. It was the same in the early 90's!
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2 comments:
So I forget where I read this, but the house-stripping has already begun. The article lamented on the bums occupying and trashing the houses and the boards on the broken windows read "no PVC, no copper"....
Well, what do you expect?
If the bank is going to foreclose, you might as well sell everything of value.
Again, this is why this is deflationary. The bank does not get an asset even close to the value that it loaned out.
In fact, it will be worse. Angry people will trash the house just out of spite.
During the early 90's there were reports of people buying cheap fish, and stuffing them inside the walls. Stink up the place, and the bank needs to spend tons of money to get it back to where it can sell.
Also remember, banks are in the money business not in the landlording business. Their goal is get a non-productive asset off their books as quickly as possible.
Again, deflationary because credit is being destroyed.
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