Does any one truly realize the impact of our declining ecomony right now? Loss of employment, savings gone, houses being foreclosed on...scary!
For weeks now all you can hear in the distance is the constant chill of the sirens on fire trucks and ambulances. People are buring down their homes for the insurance rather than lose them to foreclosure. Often with little regard to occupied homes around them.
This country is in a very serious state right now. I know it scares me !
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selectiveman
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Nov 9 @ 7:49PM
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On a small scale, people that borrow more money than they can afford, or under terms they don't understand, would only hurt them,as individuals.
But when you have lenders giving loans to people with questionable credit on a large scale it will eventually hurt all of our home values, and job security once the housing industry screeches to a stop.
During the boom of home value increases, thousands of people were diving into home ownership as a means to make a quick buck.
Many of these people didn't belong in the housing market. Not knowing what they were doing, they bought high, never thinking that values would go anywhere but up.
A lesson has been learned by lenders, and folks trying to get rich off a house. Instead of buying one to live in.
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mysticlisa
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Nov 9 @ 7:49PM
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I agree that the bank made bad loans on purpose.
But I put the blame mainly on the individuals that took out the loans. They were idiot for signing something that they didn't fully understand. I put the blame on each company and individual that got greedy in this.
When are people going to stop blaming other for their own greediness. START LIVING WITHIN YOU MEANS, AND STOP TRYING TO GET ME TO PAY AND OTHERS TO PAY FOR YOUR STUPIDNESS.
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Etowah
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Nov 9 @ 8:04PM
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I get tired of folks blaming borrrowers for losing their houses. In most cases that is bullshit. The people losing their houses around here are almost all middle class people, who have lost their jobs, or else were transferred and never could sell their old house. If you don't have any income, you can't make a payment on a house, a car or rent on an apartment. Very few of the wealthier families are losing their houses, because they had surplus incomes earlier, which enabled them to save for rainy days. Most of us didn't have that luxury.
Right now in our area, about 20% of the housing stock is in some phase or form of foreclosure. About 25% of those houses were never lived in. The bank issuing the construction loan on the speculative house, foreclosed on the builder.
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Josuha
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Nov 9 @ 8:08PM
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Your all right..
Borrowers..
Banks
The loss of jobs due to NAFTA, GATT, outsourcing..bad economics.
The bottom line is, our government and the people were tiehr asleep at the wheel or greedy..or both..
It's not going to get better.
Look for a more servere downturn in the market (Starting in February). economy and joblessness.
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MrPaul
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Nov 9 @ 8:10PM
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 1.5 million homes in foreclosure, over 3 million new homeless  and the government is busy printing more money for banks to buy up other banks  $750 billion to wall street that ended up being $850 billion  . 0. To the working families and small business owners.  . Every one in office in Washington should be shipped out of this country Democrats and Republicans   .. We the people should be yelling, screaming and marching on Washington to take back the Government for the people by the people,  How much longer will we wait  , till our parents are homeless, our children or even us. Wake up people  start yelling, screaming and writing.  We have become like sheep being led to the slaughter  As long as Goverment promise to send us a check we are happy.  What happen to American Pride  , Hard work  Neighbors helping Neighbors  Communities that cared.  Our forefathers would be ashamed Shame America Shame
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scorpiogirl36
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Nov 9 @ 8:28PM
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1.5 million homes in foreclosure, over 3 million new homeless That is staggering statistics....and many people seem oblivous of the consequences.
We will all pay to make up for those that can't. For instance, they raised my house insurance $400..in an economy where the cost of a home and replacement is at an all time low and no changes to my property have been made. To me that's quite a large increase.
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chatillion
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Nov 9 @ 9:10PM
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selectiveman said:
During the boom of home value increases, thousands of people were diving into home ownership as a means to make a quick buck.
Agreed, many flipped houses, made a profit and got out of the market. Those who stayed or came late, didn't see the change in economy trends got caught and lost those houses. Many retained their primary residences.
mysticlisa said:
I agree that the bank made bad loans on purpose.
Depends on the perspective you are looking from.
House prices were escalating. The longer people waited the higher they got. No one knew when the market was going to peak out.
mysticlisa said:
When are people going to stop blaming other for their own greediness. START LIVING WITHIN YOU MEANS...
Actually, there's a high percentage of people that WERE living within their means until factories shut down, inflation took a toll, family health problems arose. They are homeless now.
You have repeated the same (or similar) comments/complaints in your own blog. While I agree 'it's not fair' those who live within their means must contribute to help those who cannot, You should be shouting louder because of all the illegal immigrants who receive FREE healthcare that you and I are paying for and cannot get.
Etowah said:
Right now in our area, about 20% of the housing stock is in some phase or form of foreclosure. About 25% of those houses were never lived in. The bank issuing the construction loan on the speculative house, foreclosed on the builder.
Every time I drive near Miami Beach, I can count 10-15 high rise buildings in various stages of construction. I keep thinking... WHO is going to be able to afford these overpriced condos?
One friend said "All the wealthy South Americans" Now that the American dollar has dropped, They cannot find cheaper Real Estate.
Unless they are fueled by pre-construction sales, the banks could pull out...
If that happens, they will never see completion. Millions of dollars in partly developed buildings riddling the skyline.
MrPaul said:
0. To the working families and small business owners. . Every one in office in Washington should be shipped out of this country Democrats and Republicans .. We the people should be yelling, screaming and marching on Washington to take back the Government for the people by the people, How much longer will we wait
MrPaul, this may the first time I have agreed with one of your comments. 
All those economic 'experts' must have had a vested interest in this bailout. I've said it before and will say it again. They are trying too hard to stabilize Wall Street and the 'world economy' that does NOTHING to put money into our infrastructure... the working class.
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Kentuck
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Nov 9 @ 9:19PM
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Many people do not want government intervention into their affairs. Then who is to protect people from excessive cost and greed by speculators. Yes speculators. Todays homes cost about1/3 more than they are worth. By buying the land and hiring contractors on a job basis one can build his own home for 1/2 of what hew can buy an existing home.
Well we had greed and speculators in the oil economy and as well as in the home industry. For years the auto companies have given the auto union employees their demands and they just passed this cost on to the consumer. well today, they are having trouble giving these autos away.
We are experiencing a big problem in this country: education is too expensive for the middle class so the only jobs are the low paying ones--others go to the already rich kids and foriegn.
The same happened to big steel and now most steel mills ar owned or partly owned by foreign companies.
The Free ecomomy does not work, the trittle down economy does not work. We are at rock bottom and many people are at the level of the Mexican that crosses the boarder. By the way the Mexican that crosses the boarder is from the slums and poor of Mexico--the educated there have the good jobs and live well.
Lets just hope that this administration can impose regulation into the economy and control wall street and greedy CEO
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Jankia
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Nov 9 @ 9:20PM
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What I realize is that when people cannot make payments on what they borrowed for they have to either be foreclosed on or sell at a loss and still owe the difference.
That was a known risk when it was purchased.
We can blame the economy...the bank or the employer that could no longer keep us employed,but some of the blame is on ourselves.
You want to beat foreclosure,sell at a loss and work as hard as you possibly can to pay back the difference.
That works...it took 13 years but I did it...so can others,that are healthy enough to work.
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AlienEeeter
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Nov 9 @ 10:31PM
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And in the mean time, surrounded by stupidity and irresponsibility, the people who *can* afford their houses (me) can't sell them for what they paid for them as property values plummet.
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scorpiogirl36
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Nov 9 @ 10:35PM
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who *can* afford their houses (me) can't sell them for what they paid for them as property values plummet. Exactly what I'm going through now. Even reduced the price and not one person has even looked at it. It's very discouraging.
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jayej
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Nov 9 @ 10:36PM
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I think everyone here gave a valid reason for what happened, the only one I saw missing was the emphasis that privatizing retirement funds played. I remember when they wanted to overhaul Social Security and there was a big push for privatizing then came 401 ks the IRAs the CDs. Then came the flipping, buy low sell high, tuck it away or buy and do it again. Lower the interest rates, refinance.
Somewhere in all that the thought that you were going to buy a home to live in, and pay for, kind of got lost. It became more of an investment than a home. That coupled with all the rest. I remember hearing Bush say "our economy is fundamently sound" I knew we were in trouble then.
But when you count on the majority of jobs being in the consruction industry, how many new homes can you build?
What really scares me is the amount of unemployment, quarterly they count the number of new jobs lost, and those that are drawing benefits, however when benefits end, those drop off the data. Now that is scary.
Fixing the problem? I don't know...the new chief of staff was on the board of directors for Fredie Mac. I suppose I will have to wait and see who the secretary of the treasury will be before I believe that this new administration is really an agent of change.
I tend to agree with the others, dump this bunch on Capitol Hill they don't give a rip about us. Get rid of the damn lobbiest with every congressmans personal phone number on thier speed dial.
J
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edthepoet
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Nov 9 @ 10:38PM
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It will only get worst,until at least until july of next year just to stabilized.
I wrote a blog about being in a recession last jan here on MD,because all the signs were there.
There's only one way out of this mess, Jobs, Jobs Jobs and it's the only way out, here's why: because jobs create pride in oneself, the govt actually brings in revenue instead of paying for govt aid for everyone, it helps people to start saving and putting money back into the banking system,it also open up the credit market....etc
People need to be aware that the fed reserve is also running out of money, now that's quite scary.
Instead of getting another wasteful stimulus, we should take that money and put into re-doing our infrastructure and creating green jobs along with give tax break to though whi invest in the green technology.
We also need to reduce our cost in Iraq by 9 billion a month, then take part of that money and buyout medical patents early that affect most Americans to cut the cost future medical bills that will happen if people can't afford to too take them. This would give the pharmaceutical companies money to do more research and development,which would create even more jobs.
We also, need to take at least one billion of that and start paying of the national debt.
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thor22
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Nov 20 @ 2:23AM
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well, scorpiogirl, your state is in a very seriously scarey part of this country right now...for your own personal saftey I sincerely urge you consider moving out to a more quiet. less populated, or crime ridden state like say...oh ND...its God's Country...God Forsaken... 
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