U.S housing boom, next thing kaboom then the solution
Posted by exodians on March 15, 2008
The subprime mortgage brouhaha that is plaguing the American economy, evidently blown up before the year 2008, is so hot to ignore. With this, we added our voices to make a big deal out of it.
We, the unofficial, disorganized, home buyers in the United States of America, who bought our homes in the early years of 2000, with sincere intentions to make them our homes for our family, where we plan to stay for years and years to come. We, who did not engage in buying and selling homes for profits (nothing wrong with that!) …kapitalista, consumerista and profit-oriented society, what do you expect?
We, who are still in the working force and have the means of paying our mortgages from pay check to pay check, that is after taxes, after retirement plans, health insurance premiums, Social Security, after all deductibles every citizen in this state could imagine, the good news is, the housing kaboom! has no effect on us.
Again, we are not affected by the housing mortgage crisis messing up the American economy. We managed alright!
However, according to the experts, “we as a nation, the U.S.A., will be affected by this mortgage meltdown.”
As a breathing individual living in this country, I don’t see how I will be affected. The only bad economic omen I could think right now is being jobless with an existing mortgage, including the monthly payment of that new hybrid SUV, the car insurance, home insurance, the food, the gas, electricity telephone, kids’ membership club fee, kids’ private schools’ tuition and the list of other bills charged from different lending agencies like Visa, MasterCards, Discover cards and all the other swiping cards from the last summer vacation.
Recession, is it real?
Real for those who are involved in exuberance and those who gambled in real state and lost. Real for homeowners who were victimized from the predatory lending practices and now facing foreclosures.
But unreal for those who live by their means and not stupid enough to get into the zero down payment and suffered the jacked up interest rates and devalued real state.
Besides, wether or not we believe in the existence of recession because we are so unaffected, the bombardment of daily headlines still say, “The U.S Economy is really in recession…” the Recession this… the recession that!. And right there, everyone seems to have agreed that the health of the U.S. economy is in bad shape and would eventually get into everyone’s nerve. “Recession there is!”, we say.
Convinced or not, the indicators such as price hikes, consumer confidence (people have stopped buying things they don’t really need), weak dollar and all the other indicators the experts are looking suggest that we are here for a ride. This is bad because according to what I heard, “the world economy depends on the American economy…so help us God.”
Interestingly and religiously speaking, mind you, In every American dollar the print is loud and clear, “In God We Trust!”.
But wait a minute, is the U.S dollar backed by God whom we trust? or backed by gold? or backed with the most advance weapons of war we have in our arsenal? Which is which, who cares! Lets proceed with the solutions, will ya!
According to the U.S. Government, “Don’t be afraid my people, help is on the way!”
For the meantime, anticipate Federal Reserved cutting interest rates like crazy. Yes, a Federal Reserved policy, a typical Economics 101 move which has proven to have charmed the market in the past. How about now? Is it?
The answer is in a form of a question, “Will it really make a difference to understand the Federal Reserved Monitary Policy?” I know the answer is lame; it doesn’t really make sense at all because that is how it is intented to be.
What is important is that more help will come to “We the People of the United States!”
Tubag sa kalisod! Translated as: Economic Stimulus Package! $600 check for individual and $300 per child is what we expect. Not a bad deal at all!
Street talk! “How much do you think the rich of the richest share?… Do I really care?…Nope, so the easiest way is just accept my share and just imagine… Yes, I imagine the billions of dollars poured into the consumer driven, capitalist, innovative, creative, most diversed American society…wheew! Yeah, hopefully that could help.”
Let the whatever you do with your money begins.
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