Catering To The Bailout Nation
From Flecks latest... Catering to the bailout Nation...
Another analysis that concurs with our Natterings... there is no way to fix this problem and
the reality that real estate prices are unjustified, unsupportable and must come down.
When the idiots that have run this country into the ground realize this, and let nature takes it course, everything will go back to normal.
For many, accepting responsibility seems to have become an antiquated notion.
Even the government seems to think that advocating the abrogation of certain real-estate contracts is sound policy.
Where will all this stop? Can those who behaved prudently afford to bail out those who behaved imprudently? Why should they have to? And is that what we really want?
this country's median income of roughly $49,000 can hardly be expected to service the debt of the median home price of $234,000. Let's do a little math.
$49,000 in yearly income leaves approximately $35,000 in after-tax dollars. Call it $3,000 a month.
A 30-year, fixed-rate mortgage would cost approximately $1,500 per month.
That leaves only $1,500 a month for a family to pay for everything else! (Of course, in many communities the math is even less tenable.)
This is the crux of the problem, and the government cannot fix it.
Either income must rise -- which seems unlikely on an inflated-adjusted basis -- or home prices must come down.
The housing bubble was the enemy, and we should cheer its bursting. We should not attempt to re-create it.
Another analysis that concurs with our Natterings... there is no way to fix this problem and
the reality that real estate prices are unjustified, unsupportable and must come down.
When the idiots that have run this country into the ground realize this, and let nature takes it course, everything will go back to normal.
For many, accepting responsibility seems to have become an antiquated notion.
Even the government seems to think that advocating the abrogation of certain real-estate contracts is sound policy.
Where will all this stop? Can those who behaved prudently afford to bail out those who behaved imprudently? Why should they have to? And is that what we really want?
this country's median income of roughly $49,000 can hardly be expected to service the debt of the median home price of $234,000. Let's do a little math.
$49,000 in yearly income leaves approximately $35,000 in after-tax dollars. Call it $3,000 a month.
A 30-year, fixed-rate mortgage would cost approximately $1,500 per month.
That leaves only $1,500 a month for a family to pay for everything else! (Of course, in many communities the math is even less tenable.)
This is the crux of the problem, and the government cannot fix it.
Either income must rise -- which seems unlikely on an inflated-adjusted basis -- or home prices must come down.
The housing bubble was the enemy, and we should cheer its bursting. We should not attempt to re-create it.
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