5/20/2010

The Crisis That Will Not Go Away


In a report yesterday [article link], mortgage delinquencies continue to hurt this "recovering economy" we are told is underway. More than 10% of homeowners have missed at least one payment since the January-March period. In fact, homeowners who have missed at least three payments has helped spike the jump. The only good news is that the number of homeowners who are starting to have trouble with their mortgage has dropped. Right now, about 8.3% of homeowners are in danger of losing their homes.

It's obvious despite all the rosy prognostications by the Obama administration, the economy is still in big trouble. When you have almost 10% of homeowners in danger of losing their homes, that is a pretty good indicator things have not turned around as much as you would like or imply. People like to point how things are picking up on Wall St. as evidence the economy is improving. For the most part, middle America doesn't have a direct tie in to Wall St. Sure, there are people who invest in the market, who make a living that way. Most Americans depend on jobs to pay their mortgage. Jobs are just nowhere to be found. Until the jobs market improves, I'm not sure how Obama can say the "economy is improving" with a straight face.



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