Well you can't turn on a single news story or financial show right now and not hear about the American Mortgage crisis. Home loans are going south all over the place and banks and mortgage companies are taking huge financial write off's. Let me make some observations on this subject and also ask some questions. Now I am not an Economist with more degree's then wall space but just a good ole boy from the banks of the Buck Creek....but..
I grew up in a pretty decent area along the Buck Crick and those houses were owned my the parents of many of my friends. I was thinking about that the other day and some of those parents owned their own business's and many others worked in the auto industry at places like Fisher Body, Warner Gear, Chevrolet and others.
Today many of those folks would not be able to own those houses because those jobs are gone. Moved to another location or down south to Mexico.
As I was listening to the radio on the way home they were discussing a bank that was getting ready to write off the largest amount loss in their long history and it was all mortgage related.
Well I challenge the markets on this one. I don't think we have a mortgage crisis in this county we have a job crisis. The jobs that supported the middle class that owned their homes and bought a new car every 4 years are gone. Their is no middle class anymore. At least no jobs to sustain a middle class.
Another question. I thought when bank foreclosed on a property they become the owner of the property? What are they taking the charge on? Just the paper of the loan while the newly gained asset shows up on a different part of the balance sheet to be dealt with as profit later?
Well bottom line is I really feel sorry for Wall Street and the banks....not.
We have to quit sending everything we make in America overseas to be made and then shipped back to us because if we keep this up we will not have any jobs or money to buy them.
Enough! We need to bring back that American Made Label. You re-focus on that and we can fix the economy and the mortgage crisis.
In my next post I will tell you how we can do it.
Have I gone way to political on all of you? The comments have stopped. Do I at least have you thinking?