Lots of unemployment. Lots of internet searches for "make money online" So all these people think they are going to make 5000$ per month like these websites tell them they will for just "a few hours of work per month" LOL
I couldn't agree more. The old rule of borrowing no more than twice gross wages/salary seems to have gone out the window. Either wages need to increase dramatically or house prices have to come down..
In my little town just north of Houston, we've got maybe 55K population in the city limits. Strip malls are like weeds here, few have any more than 10% occupancy. And someone's building MORE of the damned things.
It isn't isolated to any particular area, it is happening here in southern middle Tennessee too. There was a grocery chain named "Bi-Lo" which sold their local stores to a chain named "southern foods". They changed the signs on the stores but NEVER OPENED. There are four in the local area sitting empty- the strip malls where they are located are empty as well other than a few check cashing/title loan places.
That is PRECISELY what so pisses me the fu[k off about the "bail outs." By bailing out the banks and mortgage companies, all the gov't is doing is trying to maintain the ridiculously high prices on homes! If they would just let the prices fall back to reasonable levels - intelligent and normal people could begin to buy again. As it is with the bailouts the gov't is helping to maintain prices that are still above two times average salaries. IIRC the latest numbers show that the average price of a home (in the US) is still around $178K, but that would mean that the average household is pulling in $89K per year - NOT!!! -gastropod
If that is why they bail out the banks (to keep house price high) but average income can not afford that house, why do that? They want to sell more houses to the future, yes? So they have to make a monthly payment for the house lower so (most) people can buy. So will they make 60 year fixed rate morgage?
The average household income in the U.S. is 45,000 usd. Being generous we can allow 2.5 anual income for housing. Average house should be 112,500 dollars.
Japan has 100 year mortgages - yes, you read that correctly - 100 year mortgages! F'ing unbelievable - they have to provide proof of having children... http://tvnews.vanderbilt.edu/program.pl?ID=127764 That is what happens when the dumb fu[ks are in charge - they bail out the banksters and screw the public! Wartrace - I completely agree - that is the absurdity of the whole thing! -gastropod