Wednesday, February 24, 2010

Home is where you keep your canned goods

The number of new home sales dropped again in January to number not seen in more than 50 years. The population today is 2/3 bigger than 1960 and much older since families are smaller. It’s true a bigger percentage of families do own their homes today but that is a trend that is rapidly reversing.

The millennium generation (turning 18 since 1999) has been hit harder by unemployment than any other group and 20 percent have moved back home with their parents. The good news is they are the only demographic in which the majority describes themselves as liberal and there are more Democrats in this group than their elders.

Home sales were actually up in the western half of the Midwest and unemployment is relatively low. This is portrayed by the press as the conservative values of these states and their not having participated in the real-estate bubble. The reality is that these states have lost their manufacturing jobs too, but have more raw materials and food products to export to China. There are few new jobs outside of oil and gas drilling that pay a living wage. Most are the type that don’t require a verifiable green card.

Home foreclosures continue to climb as provisions written into the bank bailout by the Bush Crime Family give huge incentives to banks to foreclose as they are compensated by the government at a higher rate than if the loan were paid off. Walk away’s are becoming so common that in many markets it doesn’t affect the consumer’s credit rating that much. Rental units advertise openly to these people and many home owners are “trading up” for a better house for less money by turning in the keys and taking over a foreclosed loan. Do not attempt this without legal advise, in some states the lender can come back years later and extract the deficiency from you, which can be most of the home's value.

Trading one loan for another cheaper one may seem like a shrewd move but in a year or two things will likely be even worse. It doesn’t do the economy any good to operate on that assumption, but you need to look out for yourself. A plan that avoids debt entirely is always the best way to weather bad times and we haven’t seen the really bad times yet. www.prairie2.com

5 comments:

Anonymous said...

The last line, "...and we haven’t seen the really bad times yet." What will the really bad times look like, and how do you know?

If you listen to the news, we've turned around, and things are looking better.

So what if people don't have jobs? A report comes out, like today for example, that boeing will not make as many planes, that jobs will be lost. Yet the stock price went up. Go figure.

Fake_William_Shatner said...

FTA;
"
Home foreclosures continue to climb as provisions written into the bank bailout by the Bush Crime Family give huge incentives to banks to foreclose as they are compensated by the government at a higher rate than if the loan were paid off.
"

-- Wow, that's a doozy!
I figure you know this for fact, so I was hoping for a link or two that supports this -- I like to have examples of "They did it on purpose" and things like repealing "Glass Stegal" and the "Bankruptcy Reform Act" certainly support it. If there is a bill that REWARDS defaults -- it's the smoking gun of these traitors painting a bullseye on the Middle Class. I think it would be very convincing for anyone on the fence who is having mortgage trouble -- I'd even donate money for such a billboard to replace the Bush sign that said; "Miss Me Yet?" The only recorded person who 'missed Bush' is the Iraqi shoe thrower.


Mike Malloy was mentioning the other night that Bush and other Carlysle group notables were hanging out with dictators at some Oil meeting and again pledged their allegiance to profits. Coupled with the 80% profit sharing agreements in Iraq - that sounds like a smoking gun to me of what it was about.

Ronmac said...

Wasn't the Glass Stegal Act repealed by the Clinton gang in 1999 under the steady guiding hand of Larry Summers, now playing a front and center role with Obama?

prairie2 said...

Yes, Clinton ran as a progressive and then operated far to the right of Eisenhower. Obama has some those same people in his government but does have a few who aren't of that mind set. FDR changed after he came to office. There is still hope but I'll believe the change when I see it.

Ronmac said...

There's just not that much difference between the Dems and the GOP, not much at all.