I am sure that you have already heard about President Obama’s proposed spending freeze. I’m sure you also have read the reaction of the Blogosphere as well. To be blunt, the left is not happy at all. To see a representation of this, check out this video of Rachel Maddow going toe to toe with Biden’s economic guy.
I have to give Rachel Maddow credit; She might be as left wing-dingy as a I am a right wing-dingy — But she sure as hell can make the Obama Administration explain themselves and defend their policies very well. So, I give her credit for that, she handled herself very well and did not give this guy a pass or go light on him. Color me quite impressed. Now, as for her politics, I disagree with it. Further more, the spending thing is nothing more than good political theater. See Rachel Maddow maintains that Obama would be pulling a Hover, sorry, that is just wrong. There are many things that have changed in way Wall Street and further more, the United States handles its affairs, since the big wall street crash of 1939 and the subsequent depression. Further more, it would help stop this out of control deficit that we have on our hands. Now, I will give her credit, she does rightly (Um, sorry, just a figure of speech) observe that this politically for the Obama Administration is a political blunder; because basically, Obama is doing what John McCain ran on in the 2008 election and lost. However, Obama’s guy explained that the cuts are not across the board. Hence my idea that it is nothing more than political slight of hand.
Further more, as much as I know this is going to make me sound like Pat Buchanan; (NTTAWT!) we need to repeal NAFTA and TAFTA and the rest of those Free Trade agreements with all these Countries. We need to go back to imposing tariffs on ALL imports from around the world. That would raise capital that our Nation so desperately needs. Now politically, that could cause us problems; but it would put a huge dent in our Nation’s debt to China. It would also encourage manufactures to build their products here in America, instead of overseas — and as an “America First” type of Conservative, that would make me extremely happy. 😀
Bottom Line: While Rachel might be good at interrogation, her hypothesis is just flat out wrong or at the least, overstated.
It is a plausible question, and an interesting one at that. Are the Democrats now jumping from the bloated ship of socialist waste ever known to humankind? Are Democrats preparing themselves for the “Nuclear Option” on healthcare? The questions abound, the speculation is running rampant, and internet meme’s are burning up the bandwidth. I, on the other hand, will tell you what I do know.
First off, let us start with the local story; Michigan Lt Governor John Cherry was expected to be the person to succeed Michigan Governor Jennifer Granholm at the helm of Michigan Governorship. However, Democrat Governor Jennifer Granholm’s performance as Governor of this state has been less than stellar. I ought to know this, I have lived here all of my life. Double-digit unemployment, a one state recession that towered over the national recession for many years now; put quite bluntly, there are no jobs here in Michigan. Sure, there are jobs, if you want to work in a fast food joint, making minimum wage. However, if you happen to be a 37-year-old man, looking for a decent paying, full time job, with health insurance — you are frankly out of luck.
However, to be fair, some of Michigan’s woes cannot be laid at the feet of the Democratic leadership. GM’s credit crisis cannot be blamed entirely on the Democrats, at least not the current ones in office here in Michigan. GM and Chrysler’s troubles are a direct result of the mortgage crisis, which was caused by President Jimmy Carter and President Bill Clinton and that idiotic piece of legislation that opened up the mortgage market to high-risk individuals. When the credit markets froze up, due to the stock market crash and subsequent credit freeze, the big three found themselves in the middle of it. This is my biggest issue that I have with the “Republicans” or those within the Conservative movement. They always, without fail, blame the unions for the troubles of the big three; when in all honesty, unions had zero to do with the meltdown or its effect on the automakers. The entire mess was, in fact, lack of proper regulation in the mortgage industry and the stock market in regards to credit swaps that caused this whole mess in the first place. Sorry to my fellow Conservatives, but I am just not buying that talking point.
However, it would be fair to mention that the unions did play a role in the financial woes of the big three, as did the big three’s failure to listen to the automotive experts, who saw what Japan was doing in the 1970’s and their arrogant attitudes. The big three could have saved themselves much heartache, by building smarter, higher quality vehicles. However, by the time the big three got around to embracing the ISO standards, it was too little, too late. As for the talking point of Union workers making too much money, I find it amazing how many Conservatives have axe to grind with those who simply want to make a decent working wage. Most of the people that make these idiotic claims are those who are making more than two hundred and fifty thousand a year and have no financial worries at all; but they want to rip away the comfortable living of others. Do you see now why I have not voted “Republican” yet?
Another point that I feel that is important to make, is the fact that the big three are just designing some of the most god-awful looking car nowadays. Heck, even the trucks are now getting just plain butt-ugly. Does it make any damned sense to build cars for every day Americans that look like they taken from the pages of a twenty fifth century comic book? Whatever happened to graceful, classic designs from the 1950’s, 1960’s and 1970’s? Those were real cars back then, now all the big three can produce is glorified garbage — and do not even get me started on the idea of an electric car, now that is a idea that is going to go right straight were the Chevy EV1 went, right straight into the scrap heap.
Now back on the subject of politics, it seems that Chris Dodd, going to retire. Getting sweetheart deals on a house mortgage can do that to a fellow, especially when people in your district are losing their houses left and right. I also notice that Bryon Dorgan is also retiring; he supported Obama’s healthcare plan, which made him damaged goods. I also notice that Colorado Governor Bill Ritter is withdrawing from that race — corruption will do that to a fellow.
Now what is my personal take on these retirements and how it affects the 2010 elections? My take is this; I believe that there are going to be some very big upsets come election time. Now, I do not necessarily see a Republican wave or anything like that. However, I do see a drastic change in Washington D.C. I do also see a “defanging” of the socialist monster that exists on Capitol Hill right now. As for the Governor’s race here in Michigan, I believe that the Republicans can win Michigan, but they are going to have to work to earn the trust of the American people. It would take some very hard work and some massive breaking of some very established political rules to do it. However it can be done. The people of Michigan want real answers, real results, not political grandstanding, and platitudes.
It is going to be a very interesting 2010. I look forward to writing about it and giving you my take.
Barack Obama ran for president as a man of the people, standing up to Wall Street as the global economy melted down in that fateful fall of 2008. He pushed a tax plan to soak the rich, ripped NAFTA for hurting the middle class and tore into John McCain for supporting a bankruptcy bill that sided with wealthy bankers “at the expense of hardworking Americans.” Obama may not have run to the left of Samuel Gompers or Cesar Chavez, but it's not like you saw him on the campaign trail flanked by bankers from Citigroup and Goldman Sachs. What inspired supporters who pushed him to his historic win was the sense that a genuine outsider was finally breaking into an exclusive club, that walls were being torn down, that things were, for lack of a better or more specific term, changing.
The United States economy shed 190,000 jobs in October, and the unemployment rate reached a 26-year high of 10.2 percent, up from 9.8 percent in September, the Department of Labor said Friday in its monthly economic appraisal.
While the pace of job losses has slowed significantly since the peak of the recession last winter, the unemployment rate, which measures the number of people actively seeking work, continues to climb, and economists do not foresee relief until well into next year.
“There’s no doubt that the slashing and burning of jobs has abated quite a lot,” said Allen L. Sinai, the founder of Decision Economics, a research firm. “The economy is recovering, but it is a very soft recovery.”
The biggest losses came in the construction, manufacturing and retailing sectors. Health care companies added 29,000 jobs to their payrolls, and the number of temporary workers increased by 34,000 — a significant gain that could indicate employers are beginning to expand their businesses again.
The Labor Department also revised September’s losses to 219,000 from 263,000.
Dean Baker, a director for the Center for Economic and Policy Research, said he did not expect declining unemployment rates until next spring. “We may be looking at very high levels,” Mr. Baker said, “barring a policy response, for several years into the future.”
Um, Why should there be any policy response? I believe that we are already tapping our resources to the limit now.
On Thursday, in anticipation of the unemployment report, Congress overwhelmingly voted to extend benefits for jobless workers for up to 20 weeks. That will soothe the short-term financial pain of many families, but demands for a new wave of government relief may intensify if companies continue to cut back.
Yes, let’s encourage people NOT to look for a job and continue to spend ourselves into a hole; by being a nanny state.
So far, the federal stimulus package has injected billions into local economies, giving states money, for instance, to finance construction projects or retain teachers. The housing and auto sectors have been propped up with government credits meant to encourage spending. But weak consumer demand and hefty labor costs are still forcing many employers to cut positions and reduce hours to survive.
So much for Hope and change!
The article goes on trying to defend President Obama, which is so typical for the New York Times, but it is quite obvious, this President has failed on all fronts, the stimulus, the bailouts —- everything. He is, in fact, a black Jimmy Carter.
This is now Obama’s economy. He owns the double-digit unemployment level, having bought it with the $787 billion stimulus plan that he promised would keep unemployment no higher than 8%.
I agree with that. Obama simply continued the bailouts that President Bush started, which was a huge mistake.
The AP Reports:
But the loss of jobs last month exceeded economists’ estimates. It’s the 22nd straight month the U.S. economy has shed jobs, the longest on records dating back 70 years.
Counting those who have settled for part-time jobs or stopped looking for work, the unemployment rate would be 17.5 percent, the highest on records dating from 1994.
Now, if I were a partisan Blogger, I would simply sit here and blame Obama for it all. However, I am a bit more smarter than this. This all goes to Carter and then to Clinton. This video from the Wayne County Republicans will explain:
These unemployment numbers are just a ripple effect of all of this. Bush had a hand in it, as well as Obama. This is what happens when you elect faux Conservatives as Republicans and it is what happens when you elect Socialists.
Okay, I will be the first to admit it; I do NOT agree with Ron Paul on Foreign Policy.
But he sure makes a hell of a great deal of sense; when it comes to economic policy.
Here he is on Bloomberg TV:
While I personally believe some of his followers are a bit goofy. The man himself, is another story.
…and let me give this fair warning. First idiot that comes in here and leaves a stupid comment about me being a damn Neo-Conservative will get sent to the damn twit filter so fast, it will make your head swim. 😡
Let’s face it: most Americans live in a world of false security. This is somewhat understandable, given the fact that the majority of the U.S. population was born after 1945. Few remember the dangers and hardships of World War II; fewer still remember the Great Depression. Few Americans know what it’s like to not have some sort of “supercenter” nearby with shelves stocked with every kind of food imaginable, twenty-four hours a day. Few know what life was like before there were restaurants of all sizes and types on virtually every street corner in America. And only a handful remembers when most roads were unpaved, or when sports were truly a pastime and not a megabuck obsession.
Modern living within the world’s only “superpower” has created a giant unsuspecting, soft, lackadaisical, and lethargic society. We expect the government to keep our streets safe, our roads paved, our stores stocked, our jobs secure, and our enemies at bay. However, in the desire to make government the panacea for all our problems, we have sold not only our independence, but also our virtue.
Where the federal government was contracted (via the U.S. Constitution) to accept limited power for the overall good of both states and people, it has become a monster of gargantuan proportions, claiming authority over virtually every liberty and right known to man. And in the process, it decided it didn’t need God, either.
It is no hyperbole to say that the U.S. federal government has been on a “Ban God” bandwagon for the past 50 years. Whether it kicks prayer and Bible reading out of school, bars military chaplains from praying in Jesus’ name, burns Bibles in Iraq, removes state supreme court chief justices from their positions for posting the Ten Commandments, or threatens high school principals with jail for asking the blessing, the federal government has invoked the judgment of Heaven upon our country as surely as did Old Testament Israel.
Although the comfortable, sports-crazed, TV addicts probably aren’t paying attention, this country is on the verge of an implosion like you cannot believe. For anyone who cares to notice, the signs are everywhere.
First of all, Israel and Iran are on the verge of war. And right now, I’m not concentrating on the “why” or “who’s right or wrong” of the equation. I’m simply telling you, war between Israel and Iran could break out at any time. And when it does, the chances that it will not become nuclear and not become global are miniscule. Yes, I am saying it: the prospects for nuclear war have never been greater. The CBS-canceled TV show, JERICHO, could become a reality in these United States in the very near future. (I strongly urge readers to purchase both seasons of JERICHO and watch them, because this could be our future.)
Secondly, America is on the verge of total financial collapse. By the end of this year, America’s budget deficit will stand at around $2 trillion. The debt gap is many trillions more than that. But the nail in the coffin for America’s fiscal health will be the decision by China to dump the U.S. dollar. Ladies and gentlemen, this will be the death knell for our financial stability (and a painful lesson in sowing and reaping).
It is estimated that China owns around one-third of all U.S. debt. If and when China dumps the U.S. dollar, there would be nothing left to stabilize it, and Weimar Republic/Zimbabwe-style inflation will ensue. America will be thrust into financial chaos. (If one doubts that China is planning to dump the dollar, consider that China is currently purchasing and stockpiling gold at an unprecedented level. This is why gold has suddenly surged to over $1,000 per ounce and why it will continue to rise.)
Third, the paranoia regarding the Swine Flu being demonstrated by both government and media spokesmen begs a giant push for some type of “government solution.” If they keep hyping this “pandemic,” mass hysteria and fear (created by the government and its lackeys in the media) will result. This would, no doubt, necessitate some form of forced vaccination, quarantine (maybe this is what all those internment camps will be used for), and martial law.
Exactly how and when all of the above will actually materialize is yet to be seen. There is no doubt in my mind, however, that within the next few months, the world that we know today is going to vanish. And most Americans are totally unprepared for what’s coming.
If you are able to get out of debt, do it. If you need to scale down your lifestyle in order to be better prepared for difficult days, do it. If you don’t have guns and ammo, buy them. If you have not prepared some sort of preserved food pantry, do it. If you don’t have some kind of survival plan in place for you and your family, get one. If you are not physically fit, get in shape. If you are able to move to a more secure, out-of-harm’s-way location, do it. (During any kind of financial or societal meltdown, urban areas will quickly turn into war zones. Can anyone say, “New Orleans after Hurricane Katrina”?) In other words, get your nose out of the boob tube, get your bottom off the easy chair, and get busy.
Am I worried or discouraged? Absolutely not! (But I am preparing.) The potential good that may result from all of the above is that perhaps God will protect and raise up a remnant of people who would be willing to rebuild a place where Natural Law is respected, constitutional government is revered, and where a ubiquitous, loathsome, overbearing federal government is far, far away. You know, like America’s Founding Fathers did 233 years ago.
In the meantime, get ready. It’s going to be a rocky road.
There has been quite a bit of discussion about this story in the Blogosphere already. Most of it has focused on the way that the White House handled the situation; which I will admit was less than professional. But the thing that I want to focus on, is why this is even happening.
Gov. David A. Paterson defiantly vowed to run for election next year despite the White House‘s urging that he withdraw from the New York governor’s race.
Appearing tired and agitated at a parade in Harlem on Sunday, the governor told a crowd of reporters that he would not abandon his campaign to seek a full term.
“I have said time and time again that I am running for governor next year,” he said at the 40th annual African-American Day Parade.
Mr. Paterson would not characterize what he was told by the White House, saying that he would not “discuss confidential conversations.”
“I’m not talking about any specific conversations,” he said. “As I said, I am running for office.”
President Obama had sent a request to Mr. Paterson that he withdraw from the New York governor’s race, fearing that Mr. Paterson cannot recover from his dismal political standing, according to two senior administration officials and a New York Democratic operative with direct knowledge of the situation.
The decision to ask Mr. Paterson to step aside was proposed by political advisers to Mr. Obama, but approved by the president himself, one of the administration officials said.
“Is there concern about the situation in New York? Absolutely,” the second administration official said Saturday evening. “Has that concern been conveyed to the governor? Yes.”
The administration officials and the Democratic operative spoke on condition of anonymity because the discussions with the governor were intended to be confidential.
First off the confidentiality part got blown out of the water, and the President’s communication went public. I believe that part was totally intentional. It basically was done to send a message to Governor; one of “Hey, you idiot! Get out of the race, because you are going to lose!” That is pretty much a given.
My question is this; why all of the sudden are Democrats or more specifically the President of the United States asking the Governor of New York to drop out of an election race? I have an idea, and part of my explaining that reason is in this video, please watch it: (H/T HotAir)
Is it clear to you now? Well, in case it is not. I will explain. We Conservatives have taken control of the conversation. When I say “we”, I mean, the Conservative media, like Glenn Beck, who’s really an Independent; Bill O’Reilly, Who is a traditionalist and the rest of the talk radio world. Plus, you have the Conservative Blogosphere who were the forerunners in this fight. We were criticizing the President and polices from day one! The old media finally caught to us, oh, around three months later! This is why I had the screaming fit at Jim Hoft for linking to that site! We have seized the ship and taken the wheel away from the socialist media; we cannot afford to screw it up!
We have the Democrats running scared; and when I say “We”, I mean everyone that is involved in this operation, the Conservative media, like Fox News and all of the little media guys, The Conservative Blogosphere; who have been on this President’s butt since the day he botched up the oath of office. The rest of America; after watching the stimulus basically flop and the economy not recover, after watching the Government bailout the big two (and not the big three; Ford did not take any money…) and assume control of these companies, and after those employees, like my Father, watched their Dental and Optical benefits disappear, after working 31 hard years for that Company. —– Those people are starting to pay attention to the situation and are wondering, “Hey, what on earth is going on here??” and let’s not even get into that whole Healthcare debacle! —- They were promised change, and so far, they have gotten nothing. Nothing but trillions of dollars of debt, that their grandchildren and great-grand children will paying for, for the rest of their lives.
The sad part about all this is that the Democrats have about used every trick in the book to stop this movement; and have failed horribly. First, it was the tactic of the Bush Administration; of calling everyone that is opposed to Obama’s polices as being Anti-American. Then they trotted out the fear card, saying that we who were against Obama were stirring up violent tendencies among the people. Now they have trotted out their last refuge and that is the race card. In fact, the Democrats have used that race card, so much in fact that now even the Associated Press is basically saying, “Um, Guys? You are overplaying that defense.” Even African-Americans are even starting cringe. The sad part is, that is all they have, and now as you can see, they are on the run.
So, what happens now? Do we quit? Oh, heaven’s no. We keep fighting; Bloggers keep writing, Fox News and the media guys keep reporting, keep being critical of the President. It never ends, until the battle is over in 2012, and even then; whomever is elected, we criticize them too. That is what a Constitutional Republic with a free press does, and we Blogging folk, we are the independent, non-corporate media. The sixth estate, if you will. We keep the Murdoch, the G.E. and the turner empires honest. If they fall down on the job, we call them on it. That goes for Fox News, MSNBC, CNN, ABC, NBC, CBS, or whomever else is not doing their jobs properly.
We are in the battle of our lives, for our Country, for our freedoms. We must not quit, we must not grow faint. We must carry on.
“Finally, my brethren, be strong in the Lord, and in the power of his might. Put on the whole armour of God, that ye may be able to stand against the wiles of the devil. For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. Wherefore take unto you the whole armour of God, that ye may be able to withstand in the evil day, and having done all, to stand. Stand therefore, having your loins girt about with truth, and having on the breastplate of righteousness; And your feet shod with the preparation of the gospel of peace; Above all, taking the shield of faith, wherewith ye shall be able to quench all the fiery darts of the wicked. And take the helmet of salvation, and the sword of the Spirit, which is the word of God:” (Ephesians 6:10-17 King James Version of the Bible)
That is correct, we are now the terrorists; that is according to the far left African-American wing of the Democratic Party.
I am, of course, referring to this absolutely asinine rant here. I would quote that bunch of nonsensical prattle on this blog and respond to it directly; but I am afraid that my emotions would get the best of me and I would say something that I might regret later. Leave it to the idiotic Socialist Liberal Democrats, to turn a fact finding mission, about an admitted Communist, who said everything and I do mean everything; under the damn sun about white people into a “White vs Black” witch hunt; starring of course; Glenn Beck.
The truth is folks, this had nothing to do with “White vs Black” and everything to do with Right vs Wrong. In fact, here is Glenn Back’s Statement about Van Jones’s ouster:
The American people stood up and demanded answers. Instead of providing them, the Administration had Jones resign under cover of darkness. I continue to be amazed by the power of everyday Americans to initiate change in our government through honest questioning, and judging by the other radicals in the administration, I expect that questioning to continue for the foreseeable future.
That is the truth about what really happened people. The Socialist Liberals seem to forget something; and that is that not every person under the Sun voted for Barack Obama. Some that voted for radical extremists like Bob Barr, some that wrote in the name of the crazy extremist Texas Representative Ron Paul, some that actually held their noses and voted for Moderate Republican John McCain and his V.P. Pick Caribou Barbie; er, um, I mean, Sarah Palin.
That my friends is 42% of this Country of ours. Yes, President Obama won fair and square; there is no disputing that. But he won the election for President of the United States of America and NOT President of the Democratic Party; NOT President of extreme socialist wing of the Democratic Party, not President of the Socialist States of America, not the President of the African-American wing of the Democratic Party —- But the United States of America. President Barack Obama is the American people’s President and we, as Americans, have a obligation as United States citizens to hold this President accountable for every last damn decision that he and congress make. The same was true with George W. Bush and the Republican Congress and the same is and will be true with THIS President and this Congress.
We just cannot allow, nor can we afford, to become complacent in our attitude towards politics and Washington D.C. and most importantly about the Obama Administration. That is what the Obama Administration wants; everyone just to tune out and let them handle everything. Let me be the first to say this; as a Independent Conservative writer, and not as a Republican —– that complacency is what got this Country in this mess in the first place. What am I talking about? I am referring to the last nine years in the Country. Back in 2000. There was an election, we elected George W. Bush, then the day after the election, the America said, “Okay, that is over with!” and they proceeded to tune out politics and went back to their normal lives. Then 9/11 happened and everybody paid attention again, and that lasted about a month or so, maybe two or three; but by the time December of 2001 had rolled around the majority of America had moved on or lost interest. Then 2003 rolled around, George W. Bush sort of declared war against a Country that had zero to do with the 9/11 attacks. All because upon intelligence that we now know was horribly bad. Again, everyone paid attention, for a while, maybe for about a month or so. But then, the story got to be old hat and the majority of Americans lost interest. Then came 2006, the Iraq War turned ugly — troops started dying in mass; and the American people got angry and started demanding answers. Changes were made, idiots were fired, and a magical surge happened and everything was fine again, and again the people tuned Washington D.C. and the President out, again.
Then came the 2008 elections, which really started way back in 2007. I know, I blogged about them; daily. The American people started, ever so slowly to pay attention again, weary from the Bush Years, people wanted change. Then in the middle of the horse race in 2008, the economic bubble burst and burst bad it did. This is when everyone and I do mean everyone began to pay attention. What would President Bush do? What would become of our Nation? The American people actually said, “What will become…of me?” Bush did what any beltway Conservative does in time of crisis; he became a Democrat and started trying to prime the pump. He threw money at the Bankers and very quickly left the scene. By this time, the damned world was watching and some, were scratching their heads and wondering; “What on earth are these people doing to our Nation?”
Then the day of reckoning arrived; November 4, 2008. The Nation was in dire need of change and a new President; and the American people did what our Constitution guarantees us —- A right to vote. During the election, Conservatives like myself, raised our objections to the Democratic forerunner and his policies. But, the majority of the American people either were not listening or just simply did not care. They wanted a change in direction and boy did they ever get one!
Six months have passed now and Obama’s mantra of Hope and Change is now soured and the very people that voted for him are not shaking their fists in disgust at this President. His policies are failing, tax cheats have bailed, a Communist has resigned over furor of statements made by him. His own very base is now turning on him.
Where am I going with this? What is my point?
My point is this. The American people are actually paying attention to what you do, Mr. President. Do not deceive yourself into believing that you can just do what you damned well please. Your backroom deals with big pharma will come back to haunt you in 2012. Your feeble attempt to fix this economy has essentially failed. You hired a racist-baiting, bigoted, Communist for a “Green Jobs Czar.” The American people, with the assistance of the Conservative Blogosphere; you know those 42% of Americans that did not vote for you. —- have become well informed of you actions sir. We will continue to fight for what we believe in, Mr President.
We are the loyal opposition. We have nothing to apologize for….. and we’re not going any damned where. Mr. President we elected you and we will make sure, that you are doing your job. We cannot ever afford to tune out, nor will we ever do so again.
The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.
Home price declines will have their biggest impact on prime “conforming” loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Prime conforming loans make up two-thirds of mortgages, and are typically less risky because of stringent requirements.
“We project the next phase of the housing decline will have a far greater impact on prime borrowers,” Deutsche analysts Karen Weaver and Ying Shen said in the report.
Of prime conforming loans, 41 percent will be “underwater” by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said. Forty-six percent of prime jumbo loans will be larger than their properties’ value, up from 29 percent, it said.
“The impact of this is significant given that these markets have the largest share of the total mortgage market outstanding,” the analysts said. Prime jumbo loans make up 13 percent of the total market.
I wonder what “The One” will do about this? Cash for Refinancing?
Here’s why:
The drop in home prices is fueling a vicious cycle of foreclosures as it eliminates homeowner equity and gives borrowers an incentive to walk away from their mortgages. The more severe the negative equity, the more likely are defaults, since many borrowers believe prices will not recover enough.
Homeowners with the riskiest mortgages taken out during the housing boom have seen the greatest erosion in equity, in part because they were “affordability products” originated at the housing peak, Deutsche said. They include subprime loans, of which 69 percent will be underwater in 2011, up from 50 percent in March, Deutsche said,
Of option adjustable-rate mortgages — which cut payments by allowing principal balances to rise — 89 percent will be underwater in 2011, up from 77 percent, the report said.
Regions suffering the worst negative equity are areas in California, Florida, Arizona, Nevada, Ohio, Michigan, Illinois, Wisconsin, Massachusetts and West Virginia. Las Vegas and parts of Florida and California will see 90 percent or more of their loans underwater by 2011, it added.
“For many, the home has morphed from piggy bank to albatross,” the analysts said.
It is classic; The textbook reason why you DO NOT give home loans to high risk persons. Because they are the first to lose their jobs when the economy takes a dump. This is the invention of the Clinton Administration. But yet, no one on the left wants to blame slick willy. Call it the Clinton bubble, call it a huge screw up by the Democrats. I call it reality. Welcome to the Obama Economy and the Democratic Future, brought to you by Clinton stupidity.
