Recession and Housing
I found an article I know my brother will enjoy perusing...
Here is the direct link to Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2007/10/05/AR2007100501679.html?hpid%3Dopinionsbox1&sub=AR
This return to thrift comes none too soon. Not since the Great Depression have so many Americans lost their homes in one year -- and we're not even in a recession, at least not yet. But we're still on course to see 2 million foreclosures in 2007, afflicting one in 62 households. That's a 67 percent increase from 2006, according to RealtyTrac. The Federal Reserve's recent decision to cut its benchmark rate by half a point, while widely praised on Wall Street, will do little to stop the slide.
Also not since the Great Depression have Americans saved so little. Even with unemployment at historically low levels, Americans spent more than they earned in both 2005 and 2006 -- and charged the difference. Household debt, not including mortgages, now eats up nearly 15 percent of disposable income -- more than food and gasoline combined. One in seven families is dealing with a debt collector. Children today are more likely to live through their parents' bankruptcy than their parents' divorce. Americans' stunning lack of savings not only brings personal tragedy but also is causing the dollar to plummet against all major currencies, jeopardizing our economic growth and threatening the financial system worldwide.
Crazy times are ahead of this country...I just hope when we do hit recession, it doesn't hit too hard, because if it does, I don't think this country could survive in its current form. Too many regulations and government assistance programs would have to be abandoned for the sake of practicality, and that war? Hah, if we were in a recession AND spending BILLIONS a month going FURTHER into national debt? That just won't cut it.
Here is the direct link to Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2007/10/05/AR2007100501679.html?hpid%3Dopinionsbox1&sub=AR
This return to thrift comes none too soon. Not since the Great Depression have so many Americans lost their homes in one year -- and we're not even in a recession, at least not yet. But we're still on course to see 2 million foreclosures in 2007, afflicting one in 62 households. That's a 67 percent increase from 2006, according to RealtyTrac. The Federal Reserve's recent decision to cut its benchmark rate by half a point, while widely praised on Wall Street, will do little to stop the slide.
Also not since the Great Depression have Americans saved so little. Even with unemployment at historically low levels, Americans spent more than they earned in both 2005 and 2006 -- and charged the difference. Household debt, not including mortgages, now eats up nearly 15 percent of disposable income -- more than food and gasoline combined. One in seven families is dealing with a debt collector. Children today are more likely to live through their parents' bankruptcy than their parents' divorce. Americans' stunning lack of savings not only brings personal tragedy but also is causing the dollar to plummet against all major currencies, jeopardizing our economic growth and threatening the financial system worldwide.
Crazy times are ahead of this country...I just hope when we do hit recession, it doesn't hit too hard, because if it does, I don't think this country could survive in its current form. Too many regulations and government assistance programs would have to be abandoned for the sake of practicality, and that war? Hah, if we were in a recession AND spending BILLIONS a month going FURTHER into national debt? That just won't cut it.