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Foreclosure Crisis has Ripple Effect: USA Today

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posted on Mar, 11 2008 @ 12:43 PM
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Foreclosure Crisis has Ripple Effect: USA Today


www.usatoday.com

The mortgage foreclosure crisis has caused a drop in cities' revenues, a spike in crime, more homelessness and an increase in vacant properties, a survey of elected local officials out today shows.
About two-thirds of 211 officials surveyed by the National League of Cities reported an increase in foreclosures in their cities in the past year, according to the online and e-mail questionnaire. A third of them reported a drop in revenues and an increase in abandoned and vacant properties and urban blight.

(visit the link for the full news article)




posted on Mar, 11 2008 @ 12:43 PM
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This is actually hitting home for me..I can't even count the number of foreclosure notices posted up on houses in mine and neighboring cities right now. It's really sad. And the crime rates are sky-rocketing now from people living in desperation. We've had a rash of bank robberies and people being robbed around here lately, and on the news last night, when the reporters were asking people what they thought was behind the huge spike in crime, every single one of them said the economy and job markets. Yikes.

www.usatoday.com
(visit the link for the full news article)



posted on Mar, 11 2008 @ 12:54 PM
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reply to post by DimensionalDetective
 


If this doesn't wake people up to why predatory lending is as bad as blaming the people who took the loans, I don't know what is.

Individual responsibility does not trump collective responsibility. If we don't have collective responsibility (i.e. outlawing lending to people who can't afford it) then we will continue to suffer, as a collective, the very things that DD points out in this post from the USA Today.

It's time to wake up and stop blaming the greed of individuals and start blaming the greed and lack of foresight of the lenders who perpetrated this fraud.

[edit on 11-3-2008 by Quazga]



posted on Mar, 11 2008 @ 01:01 PM
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reply to post by Quazga
 

I blame both.

But more than that, why spread the blame? Who was it that said "There is nothing a man cannot accomplish as long as he doesn't care who gets the credit"? Blame is negative credit. And credit is worthless. We're here. regardless of who drove.

You haven't seen the worst, by far. Get a gun. Stockpile food. This situation is going to get very interesting...

TheRedneck



posted on Mar, 11 2008 @ 01:42 PM
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What you are seeing is only the beginning. Between August of 08 to the end of 2011 there are set to be tens of millions of designer loans scheduled to reset: i.e. pay option ARM's, interest only loans, FLEX payment loans.

Next will be the auto finance industry. They are already experiencing much higher defaults than in previous memory, people who can no longer foot the bill on these big ticket autos. Credit crunched people are now simply letting their vehicle be repossessed instead of working out payment arrangements.

The real killer, the financial tsunami, will be the credit card industry. People are beginning to stop paying their debt obligations entirely. Which would be fine if there weren't millions of people defaulting all at once. Banks backed by sub prime loan portfolios will take billions of dollars in losses as the foreclosure continue to pile up. Investors who are gun shy will no longer purchase these type of loan packages, rendering them worthless and forcing banks to consume the losses or maintain the note themselves.

Recession is already here, depression is a very painful reality of what is to come. And thanks to Bush and the gang this country is too far in the hole financially to counter any of it. We cant even keep pace with the debt obligations that we already have. It has all become quite insane and unbelievable.




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