Posted on 03/31/2008 6:50:08 AM PDT by 2banana
Then EVERYONE from the banks on down can celebrate the feel-goodism of not being paid what they're owed.
However, the 90% of Philadelphia mortgagees who were not in arrears are no doubt very, very happy that they no longer need to bother to make mortgage or tax payments! (That new plasma TV must be pretty appealing right now!)
—That is exactly what a tightening leading market will bring.—
Loans were virtually unaffordable in the late 1970s (20 percent fixed-term for good credit mortages!) and I don’t recall breadlines or 20 percent unemployment. Even in a worse-case scenario:
1. The modern US government would NEVER let things get that bad. It would lead to socialist revolution. You’d see public works spending like crazy to keep the employment rate up. It would be Keynes on steroids.
2. Depressions are always temporary. From the near 30 percent unemployment of 1932, by 1941 unemployment was down to 9 percent. The economy was on the verge of a boom that was interrupted by US entry into WW2. Germany was an even better example; 50 percent unemployment in 1930-32, virtually full employment by 1939. An economic depression is to an economy what burning thatch is to a lawn; it is a savage way of eliminating a lot of thatch (i.e. economic ineffeciency), and the economy that returns is much more vibrant than the pre-depression one.
This couple and 3 children had a fair but not huge income. They got paid, bought groceries, bought playthings for the children, a new tv or something for the home if they wanted, and if they had anything left over (sometimes they did, sometimes they didn't) they put it on the rent.
We will never know,of course, but I just wonder if many of them have that kind of attitude.
We finally got rid of these renters after my husband found out they were cutting our trees on the backside of the property to use for firewood instead of paying to have the propane tank filled.
vaudine
Looks like we’re all headed toward a national Habitat for Humanity housing development.
Banks can’t foreclose, tenants can’t sell.
“Green, the sheriff of Philadelphia city and county, is trying to identify and track homeowners with weak credit histories who took out the loans with initially low repayments but who are no longer able to afford them because their rates have adjusted sharply higher.”
Gee, I wonder where that is in the sheriff’s job description?
Oh the joys of the seventies. Double-digit unemployment, inflation, and high interest rates as you mentioned. The thing the 70's did not have is a multi-Trillion dollar housing bubble which will destroy every lending institution if it totally crashes. So far it has been contained, but few banks will hold up if the housing market falls 20% more. A mismanagement of today's economy could far eclipse what went on in the 1970's.
Equal protection for all......well, unless you had weak credit histories.
How do socialists always know what NOT to do? And then do it?
HUD, FHA and VA handle a lot of repo’s also; when does city government tell the fed’s what to do?
Are you referring to Art I, Section 10? That’s why we have a living breathing constitution. To strangle the life out of contracts. Besides, it refers to STATES not DemocRat infested covens like Philadelphia.
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