I did my civic duty and tried to see the brightside of things.
But the reality is, this recent bailout will not work.
What does that mean?
It means the whole thing is still a house of rotten cards.
Let's examine California.
The housing market can be no where near the bottom.
This translates into a massive wave forthcoming of new foreclosures. At this rate, 71.9% of the household net monthly income is being taken up by the house payment. Even if we use gross monthly income, this person would not qualify for the underwriting in government-backed loans. Now that income does matter and income is a direct reflection of the health of the economy, we are going to enter the next phase of the housing market. The first phase was the bubble bursting creating the economic decline and prices falling, the second phase is going to be the uncovering of the fraud and toxic loans while recasts hit at the most inopportune time.
California is offering short term notes to deal with a budget crysis. They claim they will pay 4.5% interest on notes due mid next year to cover shortfalls this year. My question, what about next year, when the state realizes that thousands of businesses have closed or seen massive revenue cuts and as a fallout the state receives a lot less than they are planning on? CAlifornia will be the first state to declare bankruptsy.
http://www.bloomberg.com/apps/news?pid= … =worldwide
here are some links if you like, showing that at every opportunity to act like they cared about us and our future the state has spent every goddamned penny and then cried poverty for more.
http://articles.latimes.com/2005/may/08 … me-budget8
http://209.85.173.104/search?q=cache:-m … =firefox-a
http://www.ctj.org/taxjusticedigest/sta … alifornia/
The best thing young voters can do is vote no to all incumbents, shun credit and avoid all taxes possible. Vote no on any and all bond or spending proposals. ALL OF THEM.
The system must be reworked and the ranks of government employees purged of MILLIONS of parasites who are to be cast into the work force to live a real life subject to the laws they saddled us with. This will only happen when the said system goes belly up and grinds to a halt.
As for the bailout, it was like the Fed chief and SecTres kicked in the doors of capital hill like two old west gunmen; " give us 700 billion now. Don't ask why. Give it to us or else. "
Remember the Federal Reserve is not a governmental institution, but a bank cartel. They have no concern for using the US government funds (tax dollars) to bail out incompetent banks (management). The ones that should have concern are our Senators and Representatives who have to face the inevitable inflation and tax increases required to support this bailout.
But the reality is, this recent bailout will not work.
What does that mean?
It means the whole thing is still a house of rotten cards.
Let's examine California.
The housing market can be no where near the bottom.
This means the average family must make do with about $1,100.00 per month to cover property taxes, vehicle license fees, gas, food, cable etc. etc.Median Income: $53,770
Median Price for a California Home (June 2008): $368,250
30 year fixed mortgage with 5% down
Down payment: $18,412
PITI: $2,594
Net Take Home Pay: $3,607 (filing as a married person with 2 exemptions).
This translates into a massive wave forthcoming of new foreclosures. At this rate, 71.9% of the household net monthly income is being taken up by the house payment. Even if we use gross monthly income, this person would not qualify for the underwriting in government-backed loans. Now that income does matter and income is a direct reflection of the health of the economy, we are going to enter the next phase of the housing market. The first phase was the bubble bursting creating the economic decline and prices falling, the second phase is going to be the uncovering of the fraud and toxic loans while recasts hit at the most inopportune time.
California is offering short term notes to deal with a budget crysis. They claim they will pay 4.5% interest on notes due mid next year to cover shortfalls this year. My question, what about next year, when the state realizes that thousands of businesses have closed or seen massive revenue cuts and as a fallout the state receives a lot less than they are planning on? CAlifornia will be the first state to declare bankruptsy.
http://www.bloomberg.com/apps/news?pid= … =worldwide
here are some links if you like, showing that at every opportunity to act like they cared about us and our future the state has spent every goddamned penny and then cried poverty for more.
http://articles.latimes.com/2005/may/08 … me-budget8
http://209.85.173.104/search?q=cache:-m … =firefox-a
http://www.ctj.org/taxjusticedigest/sta … alifornia/
The best thing young voters can do is vote no to all incumbents, shun credit and avoid all taxes possible. Vote no on any and all bond or spending proposals. ALL OF THEM.
The system must be reworked and the ranks of government employees purged of MILLIONS of parasites who are to be cast into the work force to live a real life subject to the laws they saddled us with. This will only happen when the said system goes belly up and grinds to a halt.
As for the bailout, it was like the Fed chief and SecTres kicked in the doors of capital hill like two old west gunmen; " give us 700 billion now. Don't ask why. Give it to us or else. "
Remember the Federal Reserve is not a governmental institution, but a bank cartel. They have no concern for using the US government funds (tax dollars) to bail out incompetent banks (management). The ones that should have concern are our Senators and Representatives who have to face the inevitable inflation and tax increases required to support this bailout.
