Political Whispers: A Look Into Today's World of Dark Politics

HOUSING BUBBLE HAS FINALLY POPPED

By Schuyler Thorpe
Author and Political Activist

Despite Bush’s rosy reassurances that the economy remains strong–there is no disguising the reality of the housing market and the ongoing meltdown in the sub-prime lending sector.

The housing bubble has finally popped–after building up enough steam in the form of expensive homes, low rates, and virtually no checks or balances in the loan application process.

Everyone gets a piece of the action, right? Even for those who can’t afford it?

Now you have skyrocketing mortgage-interest rates, heavy-handed payment practices, a glutton of unsold homes on the markets–and to top it off: Astronomical foreclosures in many parts of the country and delinquencies stretching all around–including those who have good credit!

And Bush still thinks this won’t affect the economy at all?

Boy, is he in for a rude awakening!

What happens in the housing market affects every aspect of our own economy! If there is an upsurge in spending–based on a strong and healthy housing market–then the economy will do well.

But if it’s like this–then don’t expect our economy to do the same. And in fact, it hasn’t. Despite some plentiful jobs in parts of the country, our economy is so saddled in personal debt–that the certain collapse of the housing market was due to follow.

Coupled with high energy and food prices, stagnant wages, and high cost of living expenses, the American Dream is all but dead at this point–with so few families wondering what to do next.

Wall Street certainly woke up to that fact–after months of shrugging off signs that the housing market was indeed in much worse shape than imagined.

It lost 311 points on July 26 and 207 on July 27th, 2007–knocking it off its 14,000 peg.

And with some reports suggesting it will be 2009 until the housing market recovers–if it ever does–both Wall Street and the US economy will be in for one rough ride until then.

Schuyler Thorpe is an author, a political activist, and a frequent letter writer to The Everett Herald of Snohomish County. He can be reached at: starchildalpha1 at yahoo.com

Labels: economy, housing bubble, stock market, Wall Street

posted by Schuyler Thorpe @ 5:14 PM