I walked into my office to find a fax on my desk from a mortgage broker, here in Chicago stating the following:
"14 out of 15 mortgages in the US as of the end of August 2008 are current with their monthly principal and interest mortgage payment. "
So when do you breath? First off, know that approximately 35% of the Americans own their homes "free and clear". That's a big one!
Secondly, the percentage of those who are in default are from is a smaller percentage but we have job layoffs, credit card crunches with interest rates hitting 30% ..... and so, it will boil down to which bill to pay and which ones not to pay and hence I see about two more tidal waves hitting the default sector.
Thirdly, know and understand that we have to get our spending under control. We have to start having budgets in place and sticking to them. We need to have 401(k)'s, savings accounts for those little emergencies instead of the good old credit card which is charging obscene amounts of interest. One of the reasons why some of you are being charged this high interest rate because you can't stop spending within your means.
The definition of spending within your means: To be able to pay the bill in full at the end of the month. If you can't, you're out of control.
The reason for the fallout on the bailout was to get DC to understand that Americans are beginning to pay attention and are understanding that we have to make those in charge of our economy to be accountable. Will Wall Street be accountable? Nope. But they now know that people are paying more attention. that's a beginnning.......