So the US property market is in big doo-doo. I’m no economist, but after watching a few news reports, I’m getting the general message that the American economy has tanked, home owners can’t make their payments, mortgages are being forfeited and the companies that gaily gave credit to every shmo who came along are now going belly up.
That much is old news. But now two companies who collectively own or guarantee about half of all the home loans in America (totaling $5.4 TRILLION) are effectively bankrupt. That’s a very big problem for the American economy and the government has had to step in and use tax payers’ money to keep the two companies afloat. The cost is estimated in the hundreds of billions. And you think we’ve got problems with Eskom? Continue reading