The country's growing unemployment is overtaking subprime mortgages as the main driver of foreclosures, according to bankers and economists, threatening to send even higher the number of borrowers who will lose their homes and making the foreclosure crisis far more complicated to unwind.
Now, a few months ago I spoke with an editor at Fortune Magazine who, while declining to call this mess a depression, said that there will be more trouble ahead. She was referring to credit card troubles and she was right, but I think the big trouble is lower wages and higher mortgages. That is the foundation of much of our society and I am not talking economy here, I mean society.
There are a lot of pundits and economists who I think miss the big picture. Last year, while GW fiddled, the economy came very close to a complete meltdown. One can not keep using credit cards to finance bad lifestyle choices, and those could be unnecessary wars or big screen TV's. It all comes to an ugly end at some point, and last year it looked like the bill collector was about to knock on Americas front door.
I am still not sure President Obama and his bloated stimulus program will work, there remain a lot of that stimulus money unspent, but even if that works to shore up the economy, it will burden generations with more debt. Without massive reform and regulation, this country will continue to these cycles where everyone makes money and then no one does. No one, not even loud mouth Barney Frank is taking reform and regulation seriously. There was a lot of blathering about it months ago, but now you hear nothing.
This does not even take into account the idiot bankers who walked the economy to the edge. They are still in charge and many are still asking for millions in compensation and getting it. Let me get this right, AIG, Citigroup and Bank of America all were run my seemingly retarded monkeys, and now those same monkeys demand higher and higher salaries? This idiocy can not be regulated, but it does have to stop.
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