The Dramatic Jump Of Foreclosures In June Points To Recession

Posted in Foreclosures, July 16th, 2008 |

No matter what the pundits say the dramatic jump of foreclosures in June points to recession. Bush, Bernanke and Paulson know it but will not admit the truth. Foreclosure activity has reached record heights since the 1930’s Depression. The trio thinks that by ignoring facts and looking aside they can roll on till the November elections. The hard harsh fact is that America is in recession and the Bush government is trying its level best to cover the tracks. They refuse to go beyond admitting that the economy is slowing down. Periodically announcements are being made of the foreclosure cloud clearing allowing the economy to bounce back again. It all sounds like a cock and bull story.
There is no denying that millions are without jobs although Washington claims that the numbers are low. Billions of new dollars are being created to bail out the lender group including banks and brokers. Yet Washington says that money supply is at low ebb.
Washington’s statement about inflation seems to be blatantly erroneous. It says that inflation rate is 4.2% but one has to go to the market to find out first hand the reality of things. Each month the price of things are rising rapidly.
Adding insult to injury are foreclosure woes. The average family in the country owes $119,173 in loans (mortgages, credit cards, car loans etc.). The average saving rate is only 0.4%. There is no way these figures can be swept under the carpet.
The world is intently watching the plight of USA. Agence France-Presse from Europe reports, “A downward spiral for mortgage giants Fannie Mae and Freddie Mac was unabated” despite assurances from treasury secretary Henry Paulson. Fears centred around trillions of dollars in the housing system.
Bloomberg bluntly states foreclosure facts “The foreclosure problem is getting worse and will stay with us well into the next decade. Mark Zandi of Moody’s Economy commented that since the 1930 Depression foreclosure activity has never been as strong and intense as it is today. ReltyTrack predicts that before this year draws to an end there will be 1 million foreclosed houses taken over by the bank. It will amount to about one fourth or one third of all the houses for sale in the real estate market. Seizures by banks have tripled. The sharp drop in property value is forcing many people to succumb to foreclosures and lose the houses that are their homes.