Who Needs a 2nd Mortgage?
Chances are high, if you’re in the middle class, that the recent inflation and mortgage meltdown has left you slightly strapped for cash. Factoring in holiday debt, many are wondering what can be done to payoff all this consumer debt.
This is affecting people the world round, as debt continues to climb. The Wallstreetexaminer reports:
The world economy has reached a new dangerous point. It is best explained in simple terms. Basically the blowup of fictitious capital has wiped out the leveraged capital Riskloves. Simply put, ABC Risklove or XYZ Pig Man once had $1.0 billion in capital, and made spread bets on $10 billion in suspect “assets”. He (she, it) took on $9 billion in liabilities to do so. Now hypothetically the assets are worth at best $7 billion (no one really knows, as market has broken), and that’s only if a further panic can be avoided. A panic is averted by pretending the assets are still worth $9 billion, leaving $2 billion in fictitious capital (FC) on the books. FC spins are conducted by spewing out propaganda that only subprime is the problem. The credit agencies meanwhile act like they are on the old case files playing some catchup, but ignore the next tsunami wave two feet off shore. Fitch, who moves quicker, is downgrading some of the second wave, but it is slow motion. All the other blowups like commercial mortgages, and unsecured consumer loans are largely ignored.
Thankfully, at least for US consumers in debt, there is the 2nd mortgage option. Essentially, one can leverage the equity in their home to payoff their credit card debt, at a lower interest rate, though now secured with property.
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