Mainecoons
12-24-2013, 05:57 PM
An op ed piece that I have a hard time arguing with:
While the media and politicians keep telling us the housing market has turned the corner and is healthy again, the delinquency rate on single-family residential mortgages at all commercial banks in the second quarter of this year stood at 9.41%—that’s 558% higher than the delinquency rate in the first quarter of 2005. (Source: Federal Reserve Bank of St. Louis web site, last accessed September 4, 2013.)
In the first quarter of 2000, the 12-month rate of change in real disposable income per capita was up 3.2%. In the first quarter of this year, the same statistic was in negative territory—and there was no change in the second quarter. (Source: Federal Reserve Bank of St. Louis web site, last accessed September 4, 2013.) The incomes of Americans are actually declining, contrary to what you’d see in periods of economic growth.
If you are following the early reports on Christmas shopping, it is looking more and more like a serious decline is showing up.
As it stands today, the U.S. government and our central bank (http://www.profitconfidential.com/central-bank/) is working to bring “calm” to the deteriorating middle class by keeping interest rates artificially low and by printing trillions of dollars in new money to save them. But unfortunately, the newly created money is finding its way to the big banks (http://www.profitconfidential.com/big-banks/) that, instead of taking the money and lending it the middle class using softer lending practices, are investing in the stock market. And interest rates, despite the Fed’s actions, are rising quickly.
http://smallbusiness.yahoo.com/advisor/obituary-american-middle-class-155040791.html
While the media and politicians keep telling us the housing market has turned the corner and is healthy again, the delinquency rate on single-family residential mortgages at all commercial banks in the second quarter of this year stood at 9.41%—that’s 558% higher than the delinquency rate in the first quarter of 2005. (Source: Federal Reserve Bank of St. Louis web site, last accessed September 4, 2013.)
In the first quarter of 2000, the 12-month rate of change in real disposable income per capita was up 3.2%. In the first quarter of this year, the same statistic was in negative territory—and there was no change in the second quarter. (Source: Federal Reserve Bank of St. Louis web site, last accessed September 4, 2013.) The incomes of Americans are actually declining, contrary to what you’d see in periods of economic growth.
If you are following the early reports on Christmas shopping, it is looking more and more like a serious decline is showing up.
As it stands today, the U.S. government and our central bank (http://www.profitconfidential.com/central-bank/) is working to bring “calm” to the deteriorating middle class by keeping interest rates artificially low and by printing trillions of dollars in new money to save them. But unfortunately, the newly created money is finding its way to the big banks (http://www.profitconfidential.com/big-banks/) that, instead of taking the money and lending it the middle class using softer lending practices, are investing in the stock market. And interest rates, despite the Fed’s actions, are rising quickly.
http://smallbusiness.yahoo.com/advisor/obituary-american-middle-class-155040791.html