The Housing Bust: a Statistical Portrait

housing bust.

The housing bust, is a bottom-line equation. The government alone cannot solve the housing problem, but they can minimize losses. There are to many factors at play in this housing market. One: lenders practices and internal policies. Two: consumer knowledge and understanding of their own consumer needs, not to mention understanding of lenders practices. Three: the rise of, cost of living from food to gas prices and personal care. Four: This global economy which we are so dependent on based on all goods. Five: Wages. Today's wages do not compensate for the average cost of living and the average mortgage loan. Mortgage loan amounts went up, but wages stayed average. Cost of living went up, but wages stayed average. This is what i call the Libra effect, there must be a balance, to stay balanced. The bottom line equation is this, is it more cost effective to throw people out of their home and create an imbalance in family life and everyday life, (a mess on top of a mess) than to force the banks to re-evaluate each individual loan (re-write each loan) take a loss on the equitable value on paper, with a tax-forgiveness-credit to the consumer, re-evaluate the consumers finances and create a customize loan for the consumer based the their consumer equation OR is it more cost effective to send NOD's, Foreclose on a home, throw families out of their home and have the banks end-up with portfolio losses in the billions, if not trillions. Here is a thought, The Dayton, Ohio; housing market. There are houses being demolished by the hundreds, if not thousands. Government agencies and lenders, are both doing this. Could the government, working together with lenders create and turn this loss into something constructive, maybe a housing environment for the homeless. Where the homeless can live and maybe obtain training to become productive citizens ( isn't that what the government wants anyways, from it's citizens) and maybe if the banks and government work together, this housing mess can be fixed, and if not fixed minimized. A perfect example of bank and government not working together is this lower rate( the feds adjust, lower rates), but the banks continue to keep rates at an average of 5.5% nation wide. My questions is: Were the feds lowering rates to create a global economic mess, or to assist the average American family with their current financial and housing situation.......................................................JUST A THOUGHT.

Louis Mendez of CA @ Apr 19, 2008 15:01:33 PM