Increasingly, the world's leaders are resembling the Ancient Roman Circus: causing problem-after-problem, finding a scapegoat and then offering a solution that only makes matters worse.
Reading the Hanley Wood Market Intelligence website's housing sector statement is like reading the report card of a failing student. Hanley Wood has reported that from February 2006 to May 2008, homes in Orange County lost 33% of their value.
The Orange County foreclosure rate crossed 1,000 per month in May 2008.
Wise men know that the housing market collapse was caused by politicians; who told conservative bankers to lend to people with "borderline" credit or the politicians would sue the lenders for "redlining."
Now, the same guilty politicians are doing all they can trying to hide their mistake. The United States Congress is "throwing good money after bad" with its planned bill to give failed mortgage lenders and borrowers more money.
The Moody's Rating Firm has shown the foolishness of such a policy; when it reported that 42% of struggling borrowers, who had been given assistance in late 2007, were 90 days late in their mortgage payments as of March 31, 2008.
Only the government rewards bad decisions with financial rewards.
No amount of rhetoric can change the fact that many struggling homeowners received mortgages that they probably couldn't afford.
Only honesty will lift the United States out of its housing woes. So far, honesty is a very rare commodity in Washington D.C.
Orange County Real Estate
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