Marxism and the Housing Bubble

*Godfather* · 12-13-2007, 11:30 AM

I'm a bit surprised the housing crisis is not a topic of conversation here yet.

It's baffling, and I cant help but watch for new stories in the news on a daily basis. As a Canadian, the crisis is not at home... yet (is as recession coming, is the big question). Our mortgages are fixed, and it seems that whoever is in charge of the debt situation in Canada didnt forget about the Great Depression.

I'm not sure where or how it happened again, but it seems that with flexible interest rates and subprime lending, combined with a bizarre hike in housing prices from about 1995-2005 that had nothing to do with interest rates (which it usually does, but oddly enough interest rates are at historical lows), there was a paper surplus of billions of dollars. Now, the pretty mortgage rates of the less wealthy American population have gone from affordable, to unfordable and people are forced to pay mortgages they cannot afford, on houses not worth what they were bought for.

Marx said this is what happens... the Bourgeois explores foreign markets and exploits them, while at home creates crisis and consolidates power. Ie. Why the hell is it that as the US government explore more markets such as Iraqi oil, the people feel they are being squeezed more and more.

He also said that it would eventually kill them, as they consolidate smaller and smaller, and keep the property ownership and capitol in the hands of fewer and fewer (lord knows not too many are affording property right now).

I'm sure this is a touchy subject... if you're going to get emotional just run

OH! Ps.. I'm not a communist, I just find it fascinating that it still applies even though it was written in 1848

**Noodles** · 12-14-2007, 12:34 AM

It is greed at its finest example.

It is creating total havoc in the financial sectors here. It is not over. The worst is yet to come.
The mega banks and lenders are about to get there arses kicked and it does not matter
how low the prime rate goes, the cat is out of the bag.

*Big Boss* · 12-14-2007, 01:02 AM

don't know where to begin with this topic, gives me a headache just thinking bout it

on a side note marxism is not the same thing as communism atleast not the communism we've come to know

*Godfather* · 12-14-2007, 01:37 AM

Marx talks in detail about what it is to be communist... Marxs' communism that is discussed in the communist manifesto is what I meant....

'communism as we've come to know it', isnt even 'communism' really is it? Names should be applied to that which adheres to the true definition of the word(which Chinese philosopher talked about that G? I'd quote him but I don't remember) (assuming you're talking about its application in the USSR and otherwise)