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[DUNBAR PLUMBING]

http://finance.yahoo.com/news/New-home-sales-hit-record-low-apf-2245141272.html?x=0&.v=1

Here's my opinion on this matter:

8-10 houses are going up on foreclosure a week in my city of 23 square miles and 22,000 people.

Why do you care about new construction when there is such a huge surplus of homes on the market without owners/occupants? Why?

Does "growth" always indicate a new structure? Does it?

These loss of property owners mean one huge thing; loss of tax base. Forget about the rest of the equation, think about tax base for a minute.

Tax base is what city/county/state budgets are comprised of. When you start dismantling that network there comes the inability to always prosper forward with new monies for what everyone and their brother wants out of the government system, whether it rolls to the local side of the equation or the state/nationwide part of the equation.

This pretends to make this situation invisible to some, as they feel if their business is unaffected.

Absolutely, you're going to have those who prosper in difficult times. That shouldn't be the rule.
Lots of window watchers that can see this as "not their problem" but take a look at this:

http://finance.yahoo.com/banking-budgeting/article/108894/banks-apply-pressure-to-keep-fees-rolling-in?mod=bb-checking_savings

This action called into congress is going to have a ripple effect where you're going to see defaults in credit card obligations go up. I can't tell you how much, but he triggers embedded in these equations now are steep if you screw up, more than before. You can say "I don't use credit cards" or "I pay my credit cards off every 15 days" and ignore the above situation.

But what if a person loses their job, gets a work or pay reduction, has to pay more for health care or food, property taxes. That offer in the mail starts to be a savior of sorts when the timing presents itself, and those minor monthly payments are easy to throw, not paying attention to the "big picture" of a credit profile.

They say the average American consumer harbors a credit profile of 20-26 grand of credit card debt, continuously.

Showing up with your statements on this thread "I don't have credit card debt" won't hold a candle to statistics. There's no fuzzy math in a well known statistic.



Everybody that says credit card debt is horrible? Ask anyone that has to manipulate cash flow to stay afloat what lines of credit means to them. You'll find out that working with other people's money can provide benefit to many situations if you know what you're doing.



These banks lately are starting to call out loans right now at their discretion, that's intimidation of the little guy against the big guy with no rhyme or reason other than protect thy own. Survival of the fittest. Last man standing, wins.



Do you think the current economics of the world seeing how certain sectors are taking windfall drops in revenue, do you think this curves the population increases over time?



Are people dying as many are being born?



Life spans are up. Some cancers are showing better numbers in longevity from diagnosis to death. Our generations of youth are doing more with their mind instead of with their hands. <<< I can't tell you if this is good or not, especially when simple tasks are beneath those who just don't know how to protect their wallets.



Am I rambling? Of course. I love to write and when I get into focus on these discussions I can tell you it's almost like someone else is injecting these words and I'm just the typist.



I'm curious to know what is going to happen, when the government has to finally pull these unemployed off the system, no money left to take from.



Alan Greenspan (I don't know what to think of this guy at this point, good or bad) mentions unemployment will stay considerably high for some time to come.



If retail spending keeps dropping, If new construction keeps dropping, it all swirls the bowl before it drops and goes out of the drain.



What we need right now is a huge clog to stop the process of the windfall, then recover from this point and decide what needs to be removed from the equation, and what stays. Otherwise we will be seeing more of the same on many levels where sacrifice and struggle is the common denominator of all that is happening, good or bad.

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Tags: Housing Crisis  recession  depression  economy  economy trending  economics 2010 economy