The American Consumer is driving the economies of all the developing countries around the entire world. Americans, however, are losing their high paying jobs and their medical insurance. Americans are paying ever increasing fuel costs for transportation and energy.
One example is the banking industry. In order to keep the housing market flush with cash, banks relaxed qualifications for mortgages, and even created interest-only flexible rate mortgages when the interest rates were very low. This was popular with low income families who wanted a home.
The banks and lenders then sold those mortgages to large pension funds and other big institutional investors. But now the interest rates are going up, and all those poor people suddenly see their monthly mortgage payments going up; many of those people have stopped making their mortgage payments.
The three-fold effect of gas prices, mortgage rates, and wage and job cuts will result in what the News Media will call “The Housing Tsunami” or “DEPRESSION”