So why is America economically in a funk? Is it the war? The oil prices? All the people unable to pay their mortgage? It’s all of the above. Because of the war, oil prices have increased. This increase in gas prices for Americans made it difficult to keep their homes. This “homeless” problem is then affecting the rest of the market because of how important the real estate market is in America. It’s a domino effect. However, the last domino, real estate issues, can be the first to go in order to cause just the same havoc.
A personal friend, whom I will not mention out of professional courtesy once said “it’s because of people like me—we caused this recession. That’s why I’m back in school…I used to be making over forty grand a month.” He noted that he would intentionally rip off his clients just to make an extra buck. He told me that it was better to take everything you could from one customer so you could move on to the next. He later commented “I would do anything for money.”
So, now the government, according to the article at , states the government is finally stepping in. However, it “won’t help the millions of homeowners who’ve already fallen behind in their mortgages, but the Fed is aiming to prevent another such crisis by tightening lending standards, particularly for subprime mortgages.” But why try to prevent a crisis if you’re busy with another? It’s like buying a box of Band-Aids for the deceased.
The Fed may have approved new laws to crack down on the lenders, but the home owners are also to blame—many knew they could not afford their home but hoped for the best. Then the war started; then the gas prices; then the “recession.” A perfect storm is coming America’s way…