http://www.westsideremeltdown.blogspot.com

So what is it what you are saying? That house prices will go up from here in the same, but reversed way like the prices came down after 2005, because there is a m-o-m increase, but no one wants to hear now that this is going to happen? Is this your prediction?

rc

Becoming a serf

A freeman became a serf usually through force or necessity. Sometimes freeholders or allodial owners were intimidated into dependency by the greater physical and legal force of a local baron. Often a few years of crop failure, a war or brigandage might leave a person unable to make his own way. In such a case a bargain was struck with the lord. In exchange for protection, service was required, in payment and/or with labour. These bargains were formalized in a ceremony known as “bondage” in which a serf placed his head in the seigneur’s hands, parallel to the ceremony of “homage” where a vassal placed his hands between those of his lord. These oaths bound the seigneur to their new serf and outlined the terms of their agreement. [14] Often these bargains were severe. A 7th century Anglo Saxon “Oath of Fealty” states “By the Lord before whom this sanctuary is holy, I will to N. be true and faithful, and love all which he loves and shun all which he shuns, according to the laws of God and the order of the world. Nor will I ever with will or action, through word or deed, do anything which is unpleasing to him, on condition that he will hold to me as I shall deserve it, and that he will perform everything as it was in our agreement when I submitted myself to him and chose his will.” To become a serf was a commitment that invaded all aspects of the serf’s life.

Moreover, serfdom was inherited. By taking on the duties of serfdom, serfs bound not only themselves but all of their future heirs

I agree with everything you said my the absolute count and rate of change of NOD’s is a leading indicator of everything mortgage, housing and balance sheet related. NOD can kicking results in another NOD in 60% to 70% of cases 10 months down the road. Can kicking only changes ‘when’. And the way mods are becoming so official and ‘loan like’ fewer borrowers will want to deal with it or qualify.

I do think your NOTION of ‘serfs of Sachs’ is uncomfortably CLOSE to the truth.

Actually, I don’t agree at all with Panzner or Faber with respect to that the Federal Reserve caused the global credit and asset bubbles. I consider this overestimating the power of the Fed to control market interest rates and the credit volume created. The Fed can only control interest rates of a money pool that is small compared to the total credit volume in the markets and hold by creditors like the banks. The Fed doesn’t control how much credit is created in the capitalist world economy. The banks don’t need the Fed to create credit. They do this according to their profit interests. I think the Fed’s doing between 2000 and 2007, like lowering the Fed Funds Target rate or increasing bank reserves, was rather reactive to the credit volume created and to the market interest rates. And when there is de-leveraging of the consumers going on and bank are decreasing the volume of credit, because there is a solvency crisis going on, like it is happening now, the Fed can provide liquidity and bank reserves as much as its want, the bank won’t start lending nevertheless, if it is against their business interests, and there won’t be more borrowing if the debtors can’t service the existing credit volume anymore.

rc

http://www.businessweek.com/technology/content/jul2009/tc20090727_709790.htm