User 206954

Calling a Housing Bottom

Cash Renting (mortgage buying) depends upon INCOME. A lack of Cash Rentees means not enough folks exist with incomes sufficient to both pay to live and to pay to service debt to a Cash Rental Agency (bank).

The condition of offering cash for rent and the deal structure designed to best recover the principal put at-risk depends on the financial state of a bank and the state of the economy -- Efficiency of Money and change in buying power per unit of currency.

When banks suffer from weak financial condition, bankers must act most cautious and rent cash only to those with the highest demonstrated record to pay service on debt.

When the Efficiency of Money -- the ratio of money in circulation (notes, coins) to New Commerical Credit Opportunty -- falls Big Dollar Holders bet on claims to future resources.

When this happens, jobs disappear as businesses lack means to expand or maintain open transaction relationships.

Once jobs disappear potential Cash Renters lack a way to pay for Rented Cash (mortgage).

When buying power of the currency unit falls, folks must give up more claims on their time to foreigners for imports and locals for foodstuffs. When then value of time for workers fall, workers can apportion less money to pay on debt.