What is happening in the U.S. economy? The newborn atmosphere of a slow recovery has plummeted since the start of the year when financial agencies were debating when to announce an interest rate increase. That is no longer the case.
The tax credit for first-time home buyers for up to $8,000 was over in April. Since then, housing transactions have nearly vanished. The mortgage loan interest rate has fallen to historic lows. The economic upturn that authorities claimed earlier this year simply the result of economic stimulus measures by the United States government.
Events are just as somber outside of the United States. From all appearances, a $1 trillion relief package ended the financial crisis that hit Europe. Still there is not a sign of recovery. Germany provided the needed stimulus funds, but is no longer providing capital to keep failed economies that have squandered credit with bankers solvent. Efforts to revive the economy have resulted only in more loss as bankers continue to plunder with their derivative cons. The U.S. has been fearful of making changes for the banking and finance community. Central bankers are still in charge, printing dollars as if there were no tomorrow.
Job are gone in the United States, likely forever. This is the admission of VP Joe Biden a little more than a week ago. States are looking at emergency measures to see what they can do to avoid the bleeding of jobs to other lands and to other peoples. Arizona is due to begin enforcement of a controversial immigration policy that is designed to return employment back to Arizona residents since measures by the federal government have been lackluster to non-existent in many places. The nation is full of illegals, the exact number unknown.
The price of a global economy is likely to be high. Every economy is subject to bring another one down. No one has discovered a way to move out of the doldrums. $787 billion in the U.S. was designed to boost domestic consumption, but the market is still cold. Congress has moved to bolster the economy through The Buy American Act, a ancient law passed in 1933 that requires the suppliers of the government to use American made products. Lawmakers are afraid to close tax loopholes that have remained open for corporations since 1991. As a result, nothing changes.
This has cooled temporary benefits of trade by corporations in the U.S. known as the trade deficit. Corporations don’t care about this public denuding of wealth. They simply look to their own profits, not a sustainable relationship over time. Politicians outside of the U.S. want to promote free trade, as if the United States has more to offer in this regard. Even during the recession, the States were the primary agent of consumption for the world. Reckless spending, careless law and the rise of the corporate oligarchy has resulted in a new world, with a more level playing field. That is, after all, what globalists have wanted. This means that the big players that the globe depended on for economic sustenance are no longer the powerhouses they once were.
The nation is in an economic quagmire because it has ceded its wealth to corporations, a.k.a. multinationals and central bankers. The common opinion is that nations should not try to survive at the expense of other nations. Even so, the reality is that this has always been the case. The homogenized sameness of global balance supports only those that are in place to take advantage of it. The majority of the world will suffer at the hand those few that won’t. What’s new about that? It’s simply more political pandering that benefits a few.
Most people that have considered the recent plight and cause of the downturn in the global economy have realized that Bernard Madoff is just another tip of the iceberg where fraud is concerned. Now U.S. officials have added philanthropist Sir Allen Stanford of the Stanford Group to their short list of finance fraudsters.
Stanford is accused of “massive fraud,” although this writer cannot see how Stanford’s fraud is any worse than the Madoff fraud or for that matter, banking fraud by financial institutions and bankers that started the global economic downturn and housing collapse to begin with.
I suppose the idea that Stanford’s fraud is “massive” is supposed to make us feel better in that justice is being done. Bunk. We have a long way to go baby until the criminals that belong behind bars, the perpetrators of global financial ruin are removed from their posts. Most offenders of gross financial illiteracy are still operating with impunity as the U.S. government casts there eyes in the distance in the hope of looking for other scapegoats.
Stanford is one of those convenient scapegoats ripe for the picking. Until this writer sees action against the current bevy of offending bankers, people in high places that sanctioned criminal activity and financial ruin while supposing to know better, the U.S. government has little credibility in tracking offenders or really cleaning up the banking and finance mess that plagues the nation or the world. ~ E. Manning
Years ago, because of the huge amount of money owed on car loans, coupled with low down-payments and “loan rollover”, becoming upside-down on your vehicle or owing more than it was worth at any given time was an increasingly common occurrence. With the contraction of the U.S. and the British economy, more and more homeowners are finding themselves in the same predicament.
In many cases, recent predatory lending meant less down payments and loan qualifications. However, the mortgage housing bubble has lead to downward spiraling values, resulting in owing more to a bank or lender than the house is worth. This has been highlighted in the media and now the United Kingdom is reeling from the same housing contraction.
Reports are that house prices have dropped faster in Britain than in the United States, producing an increase for a prolonged recession. Considering that most citizens have most of their asset value wrapped up in their homes, falling values, especially for recent home buyers is a real financial issue. The media has indicated that American homeowners are leaving their homes, not simply because of affordability issues, but because of refusing to pay for declining home values versus their home loans. Is this really true and could this reasoning pass beyond the United States? ~ E. Manning
The financial crisis is really hurting because people have no idea where things are going. Who is hurting worse is subject to debate, but the U.S. housing industry is clearly one flashpoint, not only in pricing value, but in production. The economic outlook has darkened with new negative reports on lay offs and consumer confidence fears in the business world. Finally, economists are beginning to admit that a recession has been in place since the end of last year as the evidence becomes crystal clear to even the most stubborn bull mentality. There is little good news, but plenty of opportunity. The American taxpayer just needs a little cooperation.
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For some time the United States has known about the enlarging mortgage foreclosure crisis and little of practical value has been done to stem the tide of a financial disaster on the horizon. Finally, the mainstream media has picked up Federal Reserve Chairman Ben Bernanke (more…)
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The credit market has grown tight. Refinancing is more difficult. As a result of the scarcity, housing prices in the United Kingdom have began to fall. The numbers fell about 3% last month. Compared to the 10% – 20% fall in the U.S. housing market, the British situation appears small and is very early in the process.
British bankers are concerned. When buyers cannot get a mortgage, most buyers don’t buy a house. Then housing prices fall because the mortgage market deflates the housing market. Apparently, the confidence levels of UK bankers is questionable. They have been directly comparing their economy to the economy of the U.S. before the mortgage crisis. They are alarmed by the larger debt of British citizens compared to American citizens and the market is cooling dramatically.
The global banking economy has been shaken. National bankers are worried about having a repeat of the U.S. mortgage crisis. Expressed fear has a way of operating as a self-fulfilling prophecy.
Banks are being overwhelmed by the U.S. housing crisis. Recent federal law enacted by President Bush is supposed to prohibit bankers from making dramatic moves against home buying borrowers during the crisis. As a result, the predatory lending that bankers have engaged in has come full circle. As homeowners stop paying mortages, more banks are often looking the other way.
This new approach by bankers presents problems for being able to effectively measure the banking crisis as well as violating their own by-laws and internal economics. The poor real estate market presents a major adjustment problem for bankers as home value continue to drop. Bankers have began to rationalize that owning an empty house that vandals can destroy or having homeowners trash homes before they leave as a result of ill will is not desirable.
The reality is that bankers are dramatically behind on dealing with the crisis. As a result, a record number of borrowers are at least 90 days late (more…)
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