The USA is moving towards the problems that Japan has suffered for the last 15 years since they monetized their real estate market, and then had to lower their interest rates to 0% to keep the real estate market from collapsing. When it did, Japan went into a decade long recession from which they are just now beginning to recover.
We have now done the exact same thing. We allowed people to use real estate to live beyond their means, to buy things they couldn't have afforded otherwise by giving them sub-prime loans on more than 100% of the value of their collateral. Heard this before? (DYH) Do your homework about what happened to Japan from 1990-2005.
The USA learned nothing from Japan's spiral into a 3rd world status, but here we go.
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