Economic Recovery on Tax Day 2010? In The 4th Year of Democratic Control Of Congress – Unemployment And Home Foreclosures Continue To Soar

“The worst economy on our lifetime” screamed the Democratic political ads back in 2005 as we moved towards the 2006 election when the Democrats took control of both Houses of Congress.

After winning control of Congress the Democrats acellerated Government spending and the reckless mortgage practices of Fannie & Freddie.

The month before the Democrats took control of Congress in November 2006 the National unemployment rate stood at  4.4%.

The aveage unemployment rate during Bush’s 8 years as President was 4.8%.

Unemployment stands at 9.7% today (04-15-2010) and 1st time unemployment claims continues to set records and remains above 425,000 first time claims, week after week. (Jobless Claims Rise to 484,000 First-Time Claims, Associated Press: Jobs are still hard to come by as first-time requests for jobless benefits rose to 484,000 last week. ) 

Mortgage foreclosures continue at a record pace. (Foreclosure Rates Surge, Biggest Jump in 5 Years.  Associated Press: A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace. )

Nearly two years ago Obama launched his $75 Billion Dollar mortgage program during a speech in Nevada. The President promised his program would help 9 million American Homeowners. To date less than 100,000 familes have been helped at a cost to taxpayers of more than $1 million per mortgage. 1 out of every 33 houses in Nevada has received a foreclosure notice in 2010. In a normal suburban neighborhood that means 8 to 10 houses on every street are in foreclosure. In November 2006 one out of every 389 households in Nevada were in foreclosure. 1 in 33 versus 1 in 389?

Nationwide, one home in every 759 was in foreclosure in November 2006, and that number represented a doubling of the number in foreclosure in 2005 (1 home in every 1500 in 2005 – but would Congress listen when the Regulators warned about Fannie & Freddie – heck no – the Congresspeople claimed the “Regulators” findings were racially motivated and biased …. Congress played the race card rather than face facts). How does the 2006 foreclosure rate of 1 home out of every 759 compare with today? “In all, more than 900,000 households, or one in every 138 homes, received a foreclosure-related notice, in the first 3 months of 2010, RealtyTrac said. The firm based in Irvine, Calif., tracks notices for defaults, scheduled home auctions and home repossessions”.

For every 1 home foreclosure in 2006 there are 6 home foreclosures in 2010. 

At the current rate 9 million homes will face foreclosure by 2012.

Didn’t the Obama Adminstration tell us that an economic recovery was dependent on a recovery in the housing market?   Wait a minute, wasn’t an economic recovery dependent on the auto industry? , or pension relief , and of course, we can’t have a recovery without a Government take over of health care …….     

As the Democrats “feed” the Government with your tax dollars it continues to grow and as Government grows so does the unemployment rate and the number of homes in foreclosure ……\

The Democrats have been leading us down this path since 2006 …… now they are running down that  path at full speed ……. running with their eyes closed and at full speed …..

By the way …. has anyone else noticed the strange coincidence that seems to occur month after month …..  that the Administration saves or creates just enough jobs that when the number of jobs “saved” is combined with the “number of unemployed Americans who give up looking for work” – that the unemployment rate remains constant. Week after week, we have 400,000 plus new unemployment claims and yet the unemployment rate remains stuck at 9.7%.

Yeah, I believe it is just a coincidence.

Wait, let me guess …. it is all George’s fault ……….. George was in office for 8 years and the Democrats have been “in charge” the last 4. Yeah, blame it on George ….. don’t take any responsibility but please admit the obvious – you’ve been in charge the last 4 years and things have gotten a heck of a lot worse …..

The Mortgage Foreclosure Crisis – The Truth Behind The Numbers

I’m sure you’ve seen the following headline or heard the “sound bite” over your radio or from your local news anchor, “Record 1-in-10 Americans in mortgage trouble”. Before we examine this sad statistic, we should note that 9 out of 10 homeowners are not “in trouble”.

Exactly what do the authors of this article have to say, well consider this, “The Mortgage Bankers Association said Friday the percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter”. Please note 2 items, the article does not state how much of an increase has taken place since the April to June quarter, nor do the authors note that 9.2% would, in fact, represent  1 in 10 home owners.

What is not being discussed is this fact, “[The] delinquency rates for traditional 30-year fixed rate loans made to borrowers with strong credit loans rose to 3.35 percent in September from 3.07 percent at the end of June.”

The 30 year historical default rate for 30 year fixed mortgages is 3.2 percent. The 30 year “fixed” mortgage has always been referred to as a “traditional mortgage”. It was not until the advent of LIAR LOANS and NINJA Mortgages that this country saw the development of the “Sub-prime” market. The authors of this article imply that “strong credit” is required for a 30 year fixed rate mortgage, for most of the last 75 years one has had to simply prove an ability to “repay” ones mortgage and to have saved a “down payment” to qualify.        

Two out of every three mortgages currently “in trouble” are of the “sub-prime” variety. A “sub-prime” mortgage is 700% more likely to go into “default” or “foreclosure” that a “traditional mortgage”.  

Once again the pundits have the “cart before the horse”. The economy is being ruined by the reckless lending practices created by the Government when it forced LIAR & NINJA loans on the banking community. The percent of “traditional mortgages” that end up  “in trouble” or “default” or “foreclosure” has not changed substantially over the last 50 years.

The mortgage crisis is centered on the “sub-prime” mortgage market. The “sub-prime market is responsible for 2 out of 3 “defaults” or “foreclosures”. Many of these sub-prime mortgages were given to people who should not have received them in the first place.

If we are not truthful about the cause of our problems, we will never correct our mistakes ……….

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