Home Sale Relief

 I am a big fan of Doug Noland and Prudent Bear. Doug recently wrote in his credit bubble report:

And when it comes to Credit Bubble analysis, the Rest of World (ROW) page in the Fed’s Z.1 “Flow of Funds” report is actually the one I contemplated the most (and with the greatest unease) this week.  ROW increased holdings of U.S. Financial Assets by $1.573 TN last year, or 11.4%. With the Bursting of the Credit Bubble and the resulting impairment of U.S. securities, such growth has become unsustainable.  ROW holdings of U.S. Financial Assets were up an astounding $7.222 TN, or 88%, in just four years.  ROW more than doubled holdings of Agency/GSE MBS ($1.379 TN) and almost doubled Corporate Bonds/ABS ($2.583 TN) position since the beginning of 2004.  Security Repo holdings grew from $460bn to $1.100 TN. U.S. Equities almost doubled (94%) to $2.806 TN.  Total Credit Market Instrument positions were up 79% over four years to $6.855 TN.

Let’s translate this in plain English. It is the key to the mortgage bubble.

Foreign investors buying US mortgages has kept the US propped up and floating high. It has financed over one trillion dollars of US debt just last year alone. That is $3500 approximately, for every man, woman and child in the United States.

Now that the debt bubble is bursting, why should foreign investors continue financing the US debt?

And if they don’t, then what will the US do with approximately $300 per month per person deficit not being funded by anyone?

This is the key to the mortgage bubble and the next Great Depression. You cannot see the type of collapse this involves without a lot of problems. Problems that are just starting.

So please, here is what I urge you to do. Watch this important short sale video and learn how to get out of your mortgage debt, how to reduce your credit card debts, and much more.