Friday, March 26, 2010

Mortgage Delinquencies RISE 14%

1 comment:

  1. Reggie,

    There are always fringe elements that will say absurd things. People who say that Obama is Muslim do not understand anything about Islam. As for socialist, the best thing that ever happened to me was to leave the protection of home and join the Air Force. The best thing after that was to leave the economic protection of the Air Force and go back to school to learn engineering. My point is that dependency is a good thing to shed and it is not a good thing to take up unless you have to. Obama's policies make more people dependent on the government. I oppose that because dependency is not a good thing. The label, socialism, is not relevant to the argument.

    Right now, the government is like the parents with 100 children. The government does not have the resources to handle today's dependent people and now it is adding more. Whether you believe in the socialist dream or not, that pressure will grind the economy to dust. It is happening in Europe, Australia, Canada and the United States. The US has the added burden of a large military that it has to pay for. I have seen doomsayers predict worldwide economic collapse. This is the basis for this prediction.

    All of this stems from the idea that the government will take care of you. Independence is scary, but it the best thing in the long run for everyone.

    Housing prices are determined by the payment that people moving in can afford. When interest rates are kept artificially low as they are now, housing prices are held artificially high. This is what government has done through the Fed, the mortgage guarantees, and with these insane mortgages which make later payments higher than the starting payments.