,HUNDR$S ( ,BILLIONS ( ,DOLL>S 

,PEOPLE 3 

,AU?OR 3 ,CRIME?,9C4 

,TEXT 3 

,:AT ! HELL IS GO+ ON ) ! ECONOMY8 ,AS P>T ( \R COMMITM5T TO S]VE ALL ! 9VE/ORS1 BANK]S1 & REALTY AG5TS :O RELY ON ?IS SITE1 WE'VE SOLICIT$ A BRIEF 9TRODUCTORY ANALYSIS4 

,CAPITALISM )\T FAILURE IS LIKE RELIGION )\T S9--IT JU/ DOESN'T WORK4 ,F> FROM ABNORMAL1 ! BOOM_/BU/ CYCLE IS AS PR$ICTABLE AS ! FURI\S SCAPEGOAT+ & WILD-EY$ *E]LEAD+ ?AT ACCOMPANY IT4 ,BUT EV]Y SITUATION1 EV5 ! MO/ PR$ICTABLE1 PRES5TS UNIQUE OPPORTUNITIES4 ,WE PRES5T ?IS ANALYSIS 9 ! 9T]E/ ( D]IV+ /RATEGIC ADVANTAGES FROM \R 5EMIES' TEMPOR>Y IMBALANCE4 

,SO :AT EXACTLY IS GO+ ON ) ! ECONOMY RI<T N[8 ,! ONLY HONE/ ANSW] IS ?AT NO ONE IS EXACTLY SURE4 ,! ,AM]ICAN F9ANCIAL SY/EM OP]ATES ON A V>IETY ( LEVELS ( TRANSP>5CY1 MAK+ IT IMPOSSIBLE TO KN[ ) C]TA9TY :O HAS :AT & H[ MU* IT IS WOR?4 ,! SY/EM ALSO RELIES UPON A HI< LEVEL ( 9T]CONNECT$NESS BETWE5 DIFF]5T 9/ITUTIONS & 9DU/RIES1 MAK+ IT DIFFICULT TO PR$ICT ! IMPLICATIONS ( FAILURE4 

,BUT WE CAN ID5TIFY A FEW ?+S ?AT MAY GIVE US ! BEG9N+S ( A COH]5T ANSW]4 

,! BASIC \TL9E ( ! SITUATION IS ?IS3 />T+ 9 ! MID-#a#i#i'S1 ! ,AM]ICAN GOV]NM5T BEGAN D]EGULAT+ ! BANK+ 9DU/RY1 REPEAL+ LAWS ?AT HAD GOV]N$ ! T]MS ( CR$IT & 9VE/M5T S9CE ! ,GREAT ,DEPRESSION1 DUE 9 L>GE P>T TO ! MONEY-SOAK$ LOBBY+ ( COMM]CIAL BANKS4 ,SIMULTANE\SLY1 IT CREAT$ 9/ITUTIONAL & CONSUM] 9C5TIVES = HOME BUY+1 MOTIVAT$ 9 P>T BY /ATI/ICAL EVID5CE ?AT HOME [N]%IP WAS ! S+LE GREATE/ DET]M9ATE ( A FAMILY'S F9ANCIAL SUCCESS4 ,AT ! SAME TIME1 ! DOT-COM BOOM WAS PUTT+ 7FAKE7 MONEY 9TO CONSUM]S' & BANK]S' POCKETS1 & AL?\< ?AT BUBBLE BUR/ 9 #b#a1 IT WAS QUICKLY REPLAC$ BY A NEW BUBBLE 9 REAL E/ATE4 

,?US BEGAN A MASSIVE SURGE 9 HOME BUY+4 ,P>T ( ?IS UP-TICK 9 BUY+ WAS MADE POSSIBLE BY 0SUB-PRIME MORTGAGES03 LOANS ) ADJU/ABLE 9T]E/ RATES GIV5 TO PEOPLE :O PROBABLY CAN'T AF=D TO BUY A H\SE 9 ! FIR/ PLACE4 ,!Y FUNCTION MU* LIKE CR$IT C>DS3 IF HOMEBUY]S MISS A PAYM5T1 :I* !Y >E LIKELY TO DO1 ! 9T]E/ RATE D\BLES OR EV5 TRIPLES1 DRAMATICALLY 9CREAS+ ! CO/ ( !IR MON?LY PAYM5TS4 ,!SE W]E ATTRACTIVE LOANS = BANKS TO MAKE S9CE !Y ASSUM$ ?AT ALL BUT A FEW HOME[N]S W\LD CONT9UE MAK+ PAYM5TS AFT] ! UPW>D ADJU/M5T ( !IR 9T]E/ RATES4 

,! S*EME SEEMS IDIOTIC 9 H9DSI<T4 ,A HUGE RISE 9 DEM& = HOMES L$ TO RAPIDLY RIS+ REAL E/ATE VALUES4 ,TO KEEP ! M>KET BOOM+1 LESS QUALIFI$ BUY]S W]E F\ND & GIV5 SUB-PRIME MORTGAGES TO BUY H\SES AT 9FLAT$ PRICES4 ,BECAUSE PRICES W]E RIS+ & WAGES W]E /AGNANT1 LOTS ( PEOPLE ) SUB-PRIME MORTGAGES W]E UNABLE TO KEEP UP ) PAYM5TS4 ,!IR 9T]E/ RATES ROSE1 BUT 9/EAD ( PAY+ BANKS A PREMIUM1 MANY ( !M HAD TO /OP PAY+ 5TIRELY4 ,N[1 AT LEA/ TWO MILLION ( ! SEV5 MILLION SUB-PRIME MORTGAGES US$ TO BUY HOMES S9CE #aiih >E EXPECT$ TO DEFAULT4 

,:AT EXACTLY L$ TO ! FAILURES ( ,LEHMAN ,BRO!RS1 ,A,I,G1 ,MORGAN ,/ANLEY1 ,FANNIE ,MAE1 & ,FR$DIE ,MAC1 ! NEWS ( :I* HAS CABLE NEWS AN*ORS ON ! V]GE ( TE>S8 ,! PRECISE ANSW] IS MORE COMPLICAT$ ?AN SPACE ALL[S4 ,TO PUT IT 9 V]Y G5]AL T]MS1 ! TRAD+ ( SUB-PRIME LOANS BECAME A M>KET UNTO ITSELF1 A M>KET ?AT WAS ALMO/ COMPLETELY UNREGULAT$ & PU%$ TO WILDLY UNREALI/IC HEI<TS BY M\NTA9S ( DEBT4 ,:5 ! LOANS !MSELVES />T$ GO+ BAD1 ! OBSCURE LITTLE F9ANCIAL PRODUCTS BAS$ ON !M--:I* HAD BE5 VIRTUALLY PR9T+ MONEY = 9VE/M5T BANKS--TURN$ TO %IT4 ,ALL ( A SUDD5 BANKS HAD A LOT LESS MONEY1 MAK+ IT IMPOSSIBLE = SOME ( !M TO PAY = EV]Y?+ ELSE !Y DO4 

,N[1 ! ,U4,S GOV]NM5T IS PLANN+ TO BUY MO/ ( ?OSE BAD LOANS = @s#g BILLION4 ,?IS WILL TAKE !M (F ! BALANCE %EETS ( BANKS & PUT !M ON ! BALANCE %EET ( ! ,F$]AL GOV]NM5T4 ,NATURALLY1 ,WALL ,/REET IS EC/ATIC1 = ! MOM5T4 

,:]E ?+S GO FROM H]E IS DIFFICULT TO PR$ICT1 BUT WE CAN SAFELY ASSUME ?AT !RE WILL BE A LOT LESS MONEY FLOAT+ >\ND = LOANS1 AT LEA/ = A :ILE4 ,?IS MEANS BUS9ESSES WILL HAVE A H>D] TIME EXP&+ & FEW] PEOPLE WILL BE ABLE TO AF=D HOMES1 C>S1 & HI<] $UCATIONS4 ,?IS WILL HAVE BROAD NEGATIVE IMPLICATIONS = ! ECONOMY & GR[? WILL ALMO/ DEF9ITELY SL[2 :E!R ?AT WILL BE AN APOCALYPTIC RECESSION OR A BRIEF LULL IS UP = DEBATE4 ,& IF ! F$]AL GOV]NM5T 5DS UP SP5D+ UPW>D ( @s#a TRILLION BAIL+ \T FAIL+ BUS9ESSES1 WE CAN EXPECT LESS GOV]NM5T SP5D+ = A GOOD LONG :ILE4 

,:AT DOES ALL ( ?IS MEAN = AN>*I/S & \R PROJECTS8 ,IT MEANS ?AT \R CONTEXT IS AB\T TO *ANGE4 ,AS IF ! *ANGE 9 PRESID5TIAL ADM9I/RATION W]5'T 5\< ( A GAME-*ANG]1 ?IS WILL %IFT ! T]RA9 EV5 MORE4 ,H]E'S SOME HI<LY SUBJECTIVE ADVICE = TAK+ ADVANTAGE ( ! NEW CIRCUM/ANCES3 

#a7 ,?IS IS GO+ TO S\ND 9SANE1 BUT IF Y\ HAVE BE5 ?9K+ AB\T BUY+ A H\SE OR L&1 TRY TO DO IT 9 ! NEXT #ah MON?S1 ESPECIALLY IF Y\ WON'T NE$ A MORTGAGE4 ,REASONABLE MORTGAGES WILL BE H>D TO COME BY1 EV5 IF Y\ HAVE GOOD CR$IT1 BUT REAL E/ATE PRICES >E GO+ TO CONT9UE TO DROP4 ,LOOK+ AT A H\SE PRIC$ 9 ! L[ FIVE FIGURES OR LESS 9 SOME DY+ ,RU/ ,BELT CITY8 ,NEGOTIATE D[NW>D AS MU* AS POSSIBLE--:I* Y\'LL LIKELY HAVE ! LEV]AGE TO DO--& PULL ! TRIGG]4 

,9 PLACES LIKE ,GREECE1 AN>*I/ NEI<BORHOODS--YES1 NEI<BORHOODS-->E ! F\NDATION FROM :I* MU* AN>*I/ RESI/ANCE1 FROM COMMUNITY MEALS TO BANK ROBB]IES1 IS LAUN*$4 ,?IS C\LD BE \R G5]ATION'S *ANCE TO E/ABLI% SOME?+ SIMIL>4 

#b7 ,BE ! WRECK+ BALL TO G5TRIFICATION'S FRAGILE $IFICE4 ,! H\S+ BUBBLE FACILITAT$ ! RAPID G5TRIFICATION ?AT HAS TRANS=M$ MANY NEGLECT$ 9N]-CITY NEI<BORHOODS 9TO ATROCI\S PLAYGR\NDS = Y\NG AFFLU5T TYPES4 ,DUR+ ?AT PROCESS1 AN>*I/S W]5'T EXACTLY ! S& 9 G5TRIFICATION'S PROV]BIAL DIESEL 5G9E4 ,N[ WE HAVE ! *ANCE TO MAKE UP SOME GR\ND4 

,! CR$IT CRUN* WILL MAKE IT TEMPOR>ILY MORE DIFFICULT TO EXP& OR EV5 MA9TA9 ! CURR5T REA* ( G5TRIFICATION1 LEAV+ G5TRIFY+ >EAS MORE VULN]ABLE TO RESI/ANCE4 ,! REC5T ,R,N,C SOLID>ITY ACTIONS 9 ,PITTSBUR< HAVE BE5 AN 9SPIRATION TO MANY1 BUT KEEP 9 M9D ?AT GO+ ON ! (F5SIVE ALSO MEANS E/ABLI%+ ALT]NATIVES ?AT ALL[ MORE & MORE ( US TO SURVIVE & RESI/ \TSIDE ( ! LABOR M>KET4 ,IF MUTUAL AID CAN EFFECTIVELY SUB/ITUTE = SP5D+ MONEY1 ?AT CAN BE JU/ AS DAMAG+ TO BUS9ESS AS A BROK5 W9D[4 

#c7 ,PROPAG&IZE4 ,! CONTRACTION ( ! ECONOMY & ! *ANGE 9 PRESID5TIAL ADM9I/RATION BO? PROVIDE P[]FUL PROPAG&A OPPORTUNITIES4 ,WE CAN (F] A UNIQUE ECONOMIC ANALYSIS BY PROVID+ A TOTAL CRITIQUE ( CAPITALISM--PROM95TLY EXPLA9+ ! NATURAL ROLE PLAY$ BY ! BOOM_/BU/ CYCLE--& (F] ! IMM$IATE1 TANGIBLE ALT]NATIVE ( MUTUAL AID1 UNLIKE AU?ORIT>IAN ,LEFTI/S :O CAN (F] ONLY 9EFFECTUAL PROTE/ & A DY/OPIAN VISION ( ! FUTURE4 ,ANTI-CAPITALI/ & ANTI-POLITICAL PROPAG&A ?AT IS 9TELLIGIBLE & RELEVANT TO NON-AN>*I/S WILL PLAY BETT] OV] ! NEXT YE> OR TWO4 

,?AT SAID1 Y\ CAN'T FIRE A CANNON FROM A CANOE4 ,PROPAG&A ALONE IS JU/ MORE USELESS PAP]4 ,IT %\LD FUNCTION AS A COMPON5T ( DIRECT ACTION1 :E!R ?AT MEANS ,REALLY ,REALLY ,FREE ,M>KETS OR RIOTS4 ,:5 IT APPE>S AS P>T ( AN AMAZ+ EXP]I5CE OR A USEFUL GIFT1 :AT O!RWISE W\LD HAVE APPE>$ TO BE EXTREMI/ CLAPTRAP IS SUDD5LY WOR? READ+4 

7,S\RCE3 ,RETRIEV$ ON #i? ,NOVEMB] #bb FROM CRIME?9C4COM47 

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