Page 208 - THE PATH

They got embroiled in their own net. Indebted people,
companies and investors had no money to pay the

monthly instalments and things went down the drain.

The banks took the mortgages from their clients, but did

not have buyers for them. Real estate prices went below
their actual market value due to increased supply.

This situation resembled the previous crises. Fortunately,
crises come and go and everything goes back to its place

after a while. In such times, there were people on the
make who were ready to purchase real estate in cash.

They thought the prices would rise and they would profit

(historically, it has always been like that). However, the
crisis had other consequences as well and their plans

failed.

The disruption of the unwritten banking formula for

savings, 100+8=108 (savings + interest = annual return)
caused a lot of damage to the economic relations. Here is

an example.

Having completed his education, every young man wants

to get a job. He is aware that while he is young and strong
he can make money, but from this money he should also

be saving for old age.
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