The Sub-Prime Mess and The Illusion of a Middle Class

[Yavin4]

All you really need to know why the Sub-Prime mess was allowed to happen by our legislators and our regulators is this, our leaders have a vested interest in keeping up the illusion of a middle class, when in reality because of global corporatism the middle class is rapidly disappearing.

"Free" Trade agreements and Most Favored Nation status with China destroyed the domestic mfg sector of the U.S., and with that millions of middle income jobs went with them. Throw in outsourcing in the IT sector, and what you get is a domestic economy which is not generating any new middle class paying, private sector jobs.

This state of affairs left our leaders with a dilemma. On the one hand, they extolled the virtues of a global economy, and openly mocked anyone who dared criticize it as protectionist dinosaurs. On the other hand, they had an economy that was no longer producing middle class incomes. So, how do they convince the public that everything is fine and dandy with the economy?

They created an illusion of being middle class. Build homes and stick people in them whether they can pay for that home or not. Issue sub-prime, no money down loans to whomever walks into the door. In addition, lard them up with debt so that they can buy anything they want. Voila! You now have a population with the accouterments of being middle class without being middle class.

If they're in a home, have more than one car, and have a big screen TV, heck, they're middle class right? Even if they have to work multiple jobs to pay for it all or work temporary jobs with no benefits. Millions of Americans don't even comprehend the difference between debt and equity. They define middle class through their possessions.

The true definition of being middle class is the value of your assets minus the value of your debts. Depending on what that number is and where you live, determines if you're middle class or not. For example, if that number is $10,000 and you live in Mississippi, then you're probably middle class. If it's NYC, then no, you're not middle class. In any location, if that number is negative, then you are definitely NOT middle class.

[indepat]

1. As with all illusions, pyramid schemes and the like, what follows is not likely to be pretty

[Viva_La_Revolution]

2. When did massive mortgage debt become an 'investment'?

crazy Twilight Zone shit....

[Yavin4]

3. When They Said That Free Trade Agreements Would...

generate millions of jobs domestically.