Add to this the second lien problem (Yves Smith explains here) resulting from HELOC's and using houses as ATM's. Many creditors holding these loans are out on a long limb high off the ground, ground which is littered with broken glass. The banks are hell-bent on not getting stuck with the bill, so that leaves homeowners and Uncle on the hook.
What this means from the MMT/Minskian point of view is that Ponzi finance is still in the implosion stage, with considerable deleveraging yet to come and still falling housing values threatening debt-deflation.
1 comment:
ergo the inflation we see is the workings of counter-deficit-terrorists that be in power
trying to stop creative destruction
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