The current economic crisis in the United States is definitely putting a squeeze on the middle class on many fronts. Today we will look at one front, we'll start with the real estate and credit crisis. Many Americans are going into foreclosure and losing their homes and in record numbers as others scramble to file bankruptcy to buy them time to save their home if there's any equity left, sell and get out or simply live for free as long as they can. Many of them were in adjustable rate mortgages they simply could not afford when their rates adjusted.
On one side the blame has to fall on the American people for not reading the fine print. On the other side the lending practices of the banks themselves are clearly if not related to the credit crisis are directly responsible for it. That's right. Banks were loaning vasts amounts of cash to people who eventually couldn't afford to pay it back buy lending up to 100% of the value of the property to people with sub-prime credit. By doing this it artificially drove up home prices since so many qualified to buy their own home. Eventually when the real estate bubble burst many would be left in financial ruin and those with great credit would be left to pay a mortgage that amounted to more than what their properties were valued at while being left with the threat of financial ruin if they don't pay up.
Many people are walking away from the property and since the properties won't sell at the trustees sales they become bank owned and are sold for pennies on the dollar at auctions. Who are buying up these properties? The financially wealthy are. Those who can pay all cash or who have at least a minimum of 20% down payment and who qualify with full documentation. Since the stated income loans are drying up it makes one wonder why we had them in the first place and even if they were necessary why were the lenders lending 90-100% of the value in these programs.
Banks are failing because of the losses they've sustained by having too much money in the sub-prime market and they are being rescued or bought out by bigger banks. This is an area of particular concern because fewer banks means more control over money and less access to it by entrepreneurs of the middle class.
References:
legal steroids for sale
steroids for sale
buy steroids
anabolic steroids for sale
figure competition
discount supplements
tips on how to get pregnant
how to get ripped abs
how to lose love handles
online personal trainer
figure coach
figure coach
legal steroids
weight bench
fat acceptance
samsung blu ray player
plus size swimwear
rebecca minkoff
pandora charms
woodworking plans and projects
getfreakybig.com
fat acceptance
No comments:
Post a Comment