You would wonder why the sudden and domino type falling house prices is slowly working its way around the world of Western Capitalism.
I have been wondering for many years now as to when the authorities would start to really worry about the real serious effects of a forty year falling birth rate. Up to now, the only response from Western Governments was to put more money aside for pension premiums to allay the funding problem of an elderly society.
Securitisation was a clever way for an elderly society to directly capture the added value of the generation of young working men and women. Both young people in a relationship would have to work and thereby directly create the mortgage repayments and interest needed to fund the rapidly aging society. That way, they could get at the wealth created before the Government of the day collected it in taxes; of which they would not end up with much.
It appears now that because of Western Governments failure to recognise the inequalities of this situation that it now finds the whole system ready to implode. Why?
Young people have consciously or by a clicking into action of a hidden natural reaction in the way of survival of the race, are no longer buying into rising house prices or higher rents fueled by the Securitisation vehicle. Next phrase of my theory is an increase in Birth Rate as a result of the collapse of the financial system. Governments by their failure to react positively to falling birth rates have a lot to answer for! They have flogged to death the exploitation of the youth of the Capitalist World.