ALL ROADS LEAD DOWN
Posted By: FinancialEdEconomica
Date: Saturday, 12 November 2005, 7:46 a.m.
ohh and by the way, Fannie Mae disclosed new accounting errors and confirmed it will have to restate earnings by some $11 billion. Its shares fell more than 2%. Did you know that Canadian housing starts fall 10% ? Strange isnt it? Now talking of education, after reading the artcile below, I am sure you will have understood that **higher education is a scam sold to the American public**. why are tutions going up? Because colleges and schools know that people will get a loans easily to pay their studies. So, how easy to raise tuitions yearly and endlessly. Yet today people find normal to pay so much for them. They are unwillingly participating in the debt-ponzi-orgy scheme and of course will be soon left holding the bag.
(11/11) Why young Americans are drowning in debt
Saddled with college loans and credit card debts at a time when the job market is tight, they may be the most indebted generation of young Americans ever.Recently, when Beth O’Connell ordered several books from Amazon.com, she received a distressing surprise: She had hit the limit on her credit card. Sorry, no books.
“This is my first maxing out,” explains O’Connell, a publicist in Watertown, Mass., who graduated from Boston University three years ago. “I think I’m making decent money, but it’s just not enough with all the bills I pay. It’s not like I’m going out shopping and doing crazy things. I’m just trying to get by.”
Trying to get by. Those four little words echo plaintively around the country as young adults struggle to get established and stay afloat. Saddled with record-high college loans and credit card debts at a time when wages are stagnant and the job market is tight, they may be the most indebted generation of young Americans ever…… Higher tuition and housing costs
“These young adults are doing everything society tells them to do,” says Tamara Draut, coauthor of a new study, “Generation Broke: The Growth of Debt Among Young Americans,” published by Demos, a public-policy group in New York. “They’re going to college, taking on tremendous student-loan debt, and working longer hours than ever before while in college. When they get in the real world, they can’t get ahead because of the debt they went into to get the degree to get the good job.” Credit card interest out of control?……
“Generation Broke: The Growth of Debt Among Young Americans,” published by Demos, a public-policy group in New York.
November 12, 2005 | Housing market closing doors, and recession lurks, experts say Federal government may end up holding mortgages, pensions Much of the nation has had a lovely real-estate boom for the past five years, but the house party is almost over and the cleanup won’t be pretty.
That’s the word from economists and investors who have watched housing prices march ever higher. “The collapse of the housing bubble will throw the economy into a recession, and quite likely a severe recession,” warned a July report by the Center for Economic and Policy Research.
In recent weeks, many major investment companies have concurred. A Lehman Brothers report said, “(A) turn in the housing market is central to our economic forecast.” “The demographic story behind the housing-market boom, as we always thought, was a giant hoax,” wrote Merrill Lynch & Co.’s North American Economist, David Rosenberg, in a recent report….. A final nightmare scenario: A federal bailout of the mortgage market is likely if housing crashes, the center predicts. So, if corporate pension funds continue to falter and this dire prediction does come true, the Feds could conceivably be holding your mortgage and your pension….. Others point to simple supply and demand. Bubbles have their own psychology – a neighbor tells you at a party that her house has tripled in value and you feel like an idiot for renting – but supply and demand operates on logic, which has to kick in at some point……
One problem is affordability. Affordability for first-time home buyers is the worst it has been in 20 years, which brings to mind an old parable about the stock market. A woman buys up a company’s stock, driving up the price as she goes. Eventually, she tells her broker to sell.
His response: “To whom?”
“House prices are at the mountain top,” Zandi said. “All roads lead down. It’s just a question of how steeply.”
(11/09) Will a Bursting Bubble Trouble Bernanke?
AND DO NOT EVER THINK THE PREDCITIONS ARE BETTER ABROAD…
(11/10) UK: All policy payouts will fail to cover mortgage commitments
THE takeover boom may be driving up share prices, but millions of homeowners are likely to see the shortfalls on their endowment policies become an even greater problem. Research by Money Management magazine shows that payouts from policies are continuing to fall as insurance companies try to repair the damage done to their reserves during the collapse in share prices from 2000 to 2002……
(11/10) They cut $36bn in spending on the country’s working poor, they give the wealthy $70bn more in tax breaks
….. The House’s proposed budget cuts are especially callous: cutting medical benefits for 6-million poor children, removing food stamps to 225,000 working families, eliminating child-care for 330,000 poor children whose parents work. But Rep. John Boehner, R-Ohio, told his colleagues the financial picture is bleak: “The fact is, our country is going broke. We’re spending money we don’t have and passing it onto our kids, and at some point, somebody’s got to say, “Enough’s enough.’ ”
Boehner’s right. People will have to sacrifice to bring the deficit under control, but it’s hard to make a case for asking poor people to pay more when rich people are paying less…….
AND IN CASE YOU MISSED IT…
(11/11) VIDEO: Still trust Banks,Brokers and Analysts? WORSE then the Mob
PREDATORS LURKING EVERYWHERE, THIS HAPPENS EVERYWHERE NOT JUST IN NZ
(11/09) Why are staff paid incentives to get customers into more debt, and why is it if they don’t sell enough their job can be threatened?
….. Finsec, the union for finance workers, agrees with the Reserve Bank Governor who last week argued that banks are pressuring inflation through their lending practices. The major banks are driving inflation and attempting to grow their market share by imposing ever increasing sales targets on their staff……