9/11 and the coming collapse of America's Real Estate market

The Truth Will Set You Free
Nov. 30, 2006

You might ask, what does 9/11 have to do with the current real estate crisis?

The answer, you will find, is a whole lot.

Most people think that a collapse of the real estate market is something that can or should be avoided.

Of course, nothing could be further from the truth.

Not only is there no way to stop it, a collapse in the real estate market is actually desirable, as one writer pointed out the other day in his observations about ridiculously high housing rents.

The fact is that working Americans can no longer afford real estate in an inflationary economy where their only access to the capital they need to finance a mortgage (or even pay rent) dwindles by the minute.

For decades, America's economic activity has been diverted from a highly productive industrial and manufacturing base, to an initially productive, but latently inert housing sector - a transformation that is almost complete, with the exception of Ford, GM and Chrysler, which are currently being bled to death.

[Not that endless manufacturing is the solution. but, that's a subject for a separate post.]

Of course, most if not all of the fruits of this transition inured to the benefit of the financial sector who made money hand over fist each time a property changed hands in this highly speculative market, not to mention the mountainloads of interest they collect every day on the trillions of dollars currently owed by so-called 'homeowners' across America.

The end result is a completely NON-PRODUCTIVE economy that not only can no longer absorb new constructions, but also can no longer sustain the gargantuan financial leech that straddles it, draining it from EVERY pore.

In other words, the system is structurally flawed.

What does all this have to do with 9/11, you ask?

Some time ago, a rumor floated around the internet that there was asbestos in the twin towers that would have cost the owners billions to remove if done in a manner that was safe and secure for the thousands of people working in and around the towers.

Whether or not that was the motive, we may never know.

But, one thing is certain - SOMEONE decided that those towers had to come down in a manner least costly to THEM - that is, everyone else would pay the price - and they were not about to leave it to chance.

Just as the twin towers were destined to come down that fateful morning by controlled demolition, so will America's real estate market.

The only question is HOW? and WHO will pay the price?