Does anyone know why? I was interviewed by the Republican-American recently with this quandary, but it is what they left out that tells the story. You can see what they printed here.
But what was said was more expansive. The banks are running out of homes to foreclose with more than 5 million families losing their homes since 2007. Those who have not yet been foreclosed are the lucky ones who still have a job and who may not have a mortgage. Fully one-third of American homes have no mortgage. Another third of the population still have stable jobs. The rest have no money, no jobs and ability to save their home.
Consider this: Sales of homes fell nationwide so far this year by around 20%. That is compared to last year which was;t great either. If sales of homes are falling, but foreclosures are not up, then where are we? We are at the bottom. Yes, we have reached the bottom, but the question now is how long do we stay here?
The unemployment rate is falling. A good part of that drop is caused by people falling off the rolls because their benefits have run out. Others have gotten jobs, but they are neither stable nor high paying. Another segment of the population has yet to enter the job market because they haven;t been able to find a job since getting out of school. They don’t count as formerly employed since the have NEVER been employed. The job market is not recovering.
The final nail in the coffin is the student loan mess. Since kids coming out of school can’t find good paying jobs, they can’t pay their loans. But worse yet, even if they could find a good paying and stable job in their field of study, they have student loan payments that amount to a mortgage payment in size. So what’s it going to be, a mortgage payment roa student loan payment. You know the answer to that question.
So until student loan problem is resolved and the job market recovers, we are stuck at the bottom. Who knows how long it will be. And here’s to hoping that the ‘bottom’ doesn’t fall out. There’s my rant for the day.