This is the quote of the week at Mortgage Blues: “”People have been celebrating that we’re through the financial crisis, but the underlying issues are all still there,” said Dean Baker, co-director of the Center for Economic and Policy Research. “We’ve lost trillions of dollars in housing wealth, and consumption’s going to be weak. It’s not the ’30s, but there’s really nothing to boost the economy.””
Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that’s happened since the 1980s. It is just another case of fallout from greedy lenders and bad mortgages. This time the entire fabric of the United States is threatened.
The problem went far beyond mortgages and opportunists. Greed almost stopped the American economy. Too many unemployed, too many reduced credit limits, and too many homeowners are upside down in the value of their homes.
Austin Kilgore wrote an article about predictions from Deutsche Bank concerning the mortgage market and the financial position of homeowners. While we certainly saw mortgage blues on the horizon well before the summer of 2007, Kilgore’s article shocked even us.
As June 2009 rolls on more banks were shut down by the FDIC. In a recent article we asked “What is the main problem with banking in Atlanta Georgia? Perhaps the question should be “What’s wrong in Georgia?”