Foreclosures and the Purse of the Average American

Posted in Foreclosures, August 27th, 2008 |

Foreclosures have a close relationship with the purse of the average American. This is the issue being raised by candidates and something that every one wants to know. Inflation is at its worst since the last 17 years. Unemployment is soaring and foreclosures are galloping on.

To many these are just numbers and figures read over breakfast prior to rushing off to work. Mortgage dues continue to be paid while gas and food bills are denting into the income. This will mean a dinner or two will be skipped. But taking all things into account the American of today is better than what he or she suffered during the last recession that came to a close towards the end of 2001.

But that is only side of the picture. But for many statistics are a reality. They have lost jobs and are losing out to foreclosures. Rising food and fuel prices have made them give up the last hope of being able to keep the houses that are their homes. These unfortunate Americans are far worse than what they were seven years ago.

Looking at the two pictures can it be said that on an average Americans are better off? It is one of the crucial questions before the presidential candidates McCain and Obama. It is a question they are asking the voters to mull over.

There is no definite answer. Economists will throw the ball from one court to another without hitting the goal. For most the answer lies in the personal situation. CNN will be conducting a survey finding out of the hopes and fears of the ordinary citizen coming from all walks of life. To begin with CNN has asked individuals to submit photos and video clippings. Meanwhile the individual can go ahead with personal assessment against the background of the foreclosure crisis.

The first thing is employment – the foundation of economic health is the job or work. So the question to note is whether one is employed, threatened or unemployed with slim prospect of getting another proper job. Across the country unemployment has gone up by 5.7% - the figure of the late 2001.

The next thing is income. The earning figure might be the same but is it bringing in the same amount of goods and services? Perhaps the hours of work have increased or may be the salary has gone down making one work more for less. Nationally the income has not kept pace with inflation.