This post inspired by a comment in my previous post
regarding mortgage ads. I don't know if this is going to go anywhere meaningful, so don't expect much.
Those with power don't like to share full and truthful information with the public. They're afraid we might do something about it. So this is based off of information that we are being fed.
Pretend for a moment with me that you work for a mortgage lender.
You have almost no money (or so we're being told). No capital. No cash.
Your whole existence is based around giving cash to other people to buy property with. You then collect cash from those people over time.
The average mortgage lasts around 7 years. Mortgage's do not go for the full term, due to properties being sold or refinanced.
Over the life of the mortgage you collect regular installments of cash. But at the end of the loan (typically around 7 years down the road), you get almost all of your original cash back. So everything you get payed during the regular payments is gravy (read: interest).
Right now a high percentage of people you loaned money to are not paying you back. So your getting less and less cash.
In some cases you give up on getting cash back and just take the property back. Your hope is to be able to sell the property and get you original cash back. The problem there is that it's very very hard to sell any property right now, and if you do, it will likely be for less than you originally loaned out for the property. So your cash is further dwindling.
I can see how there is a tailspin of less and less cash available to lend.
You need to get back on track of getting cash back from people. In order to do that you have to lend some out. In order to get more people to lend cash out to...you might want to advertise.