Dear Government Officials and Economic Policymakers: Every American Doesn’t deserve to be a Homeowner.
Dear Government Officials and Economic Policymakers:
I think many responsible Americans are thinking why is it such a necessity or right to make every American a homeowner? Homeownership has become somewhat of a third rail in economic policy and political talk. If you really think about it, not every person deserves or can own a home. The epic foreclosure crisis is demonstrating that. This doesn’t mean that someone isn’t able to have adequate shelter. On the contrary, in extremely expensive areas like in California or New York, many people choose to rent in more desirable areas instead of purchasing a home simply because it is cheaper.
Markets Face Worst October since 1987: Dow Jones Industrial Average on Pace for Worst Year to Date Record since 1931.
At the start of Monday, the Dow Jones Industrial Average was down 36.83% for the year. How bad was that? Let us put it this way, the only two years with more Shakespearean tragic one year performances were in 1907 and 1931. That is how significant this crash is. Even with the amazing recovery of 11.29% this week which again, massive market volatility is a sign of an incredibly unhealthy market, the Dow is still down 29% for the year. The 29% market decline currently places the Dow at the 6th worst year in history. We would have to go back to 1931 during the Great Depression to find a year with poorer performance.
Massive Market Volatility is not a Good Thing! Biggest Percent Gains and Losses Occur in Economic Crisis.
I am amazed at how many people think that suddenly with a 10 percent gain on Monday that somehow the market is now in good shape. This could not be further from the truth. Massive percentage swings occur during economic turbulent times. You do not want to see 10 percent up or 10 percent down days. What you do want to see is a market that is steadily moving up based on earnings reports and an economy that is growing at a healthy pace.
Joe the Plumber Salary: How to Live Like you Make $250,000 when you only make $40,000 a year. Republican Pipe Dream Machine at Work.
I know many of you are sick of hearing about Joe the deadbeat plumber but it warrants a full budget article because “Joe” is simply a symbol of the Republican machine of being for the everyman. In essence, this Samuel Joseph Wurzelbacher stopped Senator Obama in Ohio to ask him a question about taxes. The way the question was worded, he had setup a scenario where he would be owning a business making $250,000+ a year trying to lure Senator Obama in answering his question. Obama answered the question and actually gave this guy more respect than he should have.
This is actually breaking news that has the potential to really destroy the U.S. taxpayer. There is a report out by Bloomberg and now being reported by CBS MarkeWatch that Federal regulators are going to order Fannie Mae and Freddie Mac to start buying $40 billion a month in troubled mortgages each month. Keep in mind this is money on top of the $700 billion that is allocated in the bailout package just singed a few days ago:
Bank of America: Third Quarter Earnings, $1.18 Billion. Countrywide Loan Settlement, $8.6 Billion. One of the Biggest U.S. Banks Unable to do Math, Priceless.
I’m sure it is difficult for most people who are struggling with the day to day items of life to focus on the macro problems plaguing the economy. Many families are hearing more and more everyday about a neighbor or friend that has lost a home to foreclosure and deep down many are feeling a pit in their stomach that they may be next. This is not only a financial crisis but one that will test the fortitude of many.