Friday, 29 November 2013

Why housing bubbles are so dangerous, as in the Philippines / UK

They are ultimately a precursor to the breakdown of fragile peaceful social fabrics that take generations to create. As neighbour goes to economic war with neighbour in maturity mismatching crated by monetary excesses underlying a housing bubble, it becomes more acceptable to view extremes such as genocide as social norms.  

The extreme view becomes the norm because there are no more standards of decency left.  More that housing values are destroyed by society at soar with itself in the dynamics of a housing bubble. 

Governments create these problems as they try to sort out personal problems that become translated into social problems. Realise that in a housing and stock market bubble, society is an addict! Realise too that the bubble is almost always a result of maturity mismatch in which the bankers involved yet senior in their field really do not understand the underlying mathematics of banking and credit creation. In other words social war is preventable. 

Society moves to the extreme right?







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