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alstry (35.31)

10% HOMELESS rate?

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March 05, 2008 – Comments (4)

"Clearly we've got a crisis," said Democratic Rep. Dennis Cardoza, whose district includes much of the Valley. "You look around this auditorium and think this is America, hard-working family people who go to church on Sunday and want good schools for their kids."

Five percent of Los Banos' 10,000 houses have already foreclosed and another five percent are expected to foreclose in the coming months, Cardoza said.

"You're talking 10 percent of an entire city becoming homeless," Cardoza said. "I don't know how much worse things can get."

http://biz.yahoo.com/ap/080304/ca_foreclosure_fairs.html?.v=1

How about 15%, 20%, 25%.......................

And public homebuilders keep building specs all over California.  When will banks cut them off. Public builders keep losing hundreds of millions of dollars.  Executives are paying themselves millions in bonuses while contributing to driving down the values of America's existing homes?

4 Comments – Post Your Own

#1) On March 05, 2008 at 7:47 PM, EScroogeJr (< 20) wrote:

And we should do more to drive down the value of America's existing homes. A new home selling for more than 100K and an old home selling for more than 50K is a scary rip-off because the bricks and cement that go into its construction don't cost nearly as much. As to the 10% "homeless" populattion, let them stop crying blue. There will be no tragedy if some homeowners revisit their past by going back to renting. I have still to see a convincing argument as to why I should buy a $100K pile of bricks for $500K in order to help repair someone's ATM machine.

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#2) On March 05, 2008 at 7:57 PM, TMFBent (99.81) wrote:

These politicians deserve to be tarred and feathered. Losing a house doesn't make you homeless. They're lying for effect, and deserve to be taken to task for it. Too bad the chuckle-headed reporters interviewing these jokers don't have the guts to call them on it.

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#3) On March 05, 2008 at 8:11 PM, alstry (35.31) wrote:

Losing a house doesn't mean one is homeless.  That is absolutely correct.  As a matter of fact, doubling up may bring many families closer together.  That will probably be a positive social step for society.

But if enough houses are lost, homes values will crash and many banks banks and financial institutions will go broke.

The problem right now is many Americans keep their money in banks.

Interesting problem until we find an alternative to banks.

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#4) On March 06, 2008 at 6:00 AM, EScroogeJr (< 20) wrote:

If banks go broke, it's only fair that those who benefited from the boom should pay up to help clear the consecuences of the bust. Many homeowners have seen their equity double during the boom. Now they want a bailout of the banking system. Fine. Let them go ahead and bail it out. No, wait a minute. When they say "we must pay for a bailout", they don't mean that they will actually pay. They mean that they will keep their gains and someone else will pay for the losses. Luckily, there is a much better solution. Let us add another 10% of outstanding balance to all homeowner mortgages and tighten the bancruptcy law so that they couldn't walk on their debt. In this way, the book value of the banking system will be rescued by the very same people whose loans created the problem in the first place.
 

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