How can Bush's economy be booming when the latest news is that home foreclosures have increased 43% over the

Question

last year?

Curious.

Answer 1

The economy is doing so well that not only are forclosures increasing, but the
Comptroller General Walker says if we con't do something about this massive deficit of Bush, the countries' economy will collapse within 10 years. Go Bush

Answer 2

I don't see anywhere that foreclosures have increase by that amount over the past year. Perhaps, in the anti-Bushie dedication to truthfulness [LOL!] you have merely forgotten to post a link to a legitimate news source to back up your claim.

However, the issue may be due to other factors than just because Bush is president, for despite that, correlation does not equal causation. The fact is that people have been buying too-large homes with exotic loans (interest-only, etc) based on some very low standards of credit. Couple this with the recent change in bankruptcy standards, making it harder for people to simply walk away from their debts, and voila! You have the recipe for a temporary increase in foreclosures.

Once lending agencies increase the standards of credit, and once the bankruptcy laws have shaken out and people start being responsible for their debts again, the foreclosre rate should level off.

You could also add in the fact that some markets, like the domestic auto industry locations, because of massive layoffs, the housing market is depressed and foreclosures are high.

Oops. Did I do the unthinkable and inject facts, reason and logic into an anti-Bush bumper-sticker screed?

Answer 3

Remove all politics from the question and it become an intelligent one. Politics and Economics are almost never true when you mix them in the same sentence. .

I wish the economy was as easy as a game of monopoly but its not. You cant take one statistic in either direction and assume that paints a picture for the whole economy.

People bought houses that were beyond what they could afford because they were scared about prices going up and they wanted to make a buck and they are paying for it now.

I know a guy who bought 6 rental houses... now he cant rent them or sell them for what he bought them for.. He had to sell his $700,000 house and move into one of his rentals. He may go broke on all of them and make it look as though '6 more families were evicted from their homes because of a bad economy'. Chalk one up for a bad economy...? He was dumb and deserves to loose his money. Lots of the foreclosures are similar situations.

Answer 4

It is not Bush's fault that most of these people took out low interest adjustable mortgages so that they could buy more house than they could really afford. Most such loans adjust after a two year period and leave people with a house payment hundreds of dollars more a month than they really planned on. This is not the Presidents doing but greedy home buyers and lenders are to blame!

Answer 5

In Norquist's vision, America a couple of decades from now will be a place in which elderly people make up a disproportionate share of the poor, as they did before Social Security. It will also be a country in which even middle-class elderly Americans are, in many cases, unable to afford expensive medical procedures or prescription drugs and in which poor Americans generally go without even basic health care. And it may well be a place in which only those who can afford expensive private schools can give their children a decent education

Answer 6

The foreclosure rate does not reflect on the econmy, it reflects on people buying more then they can afford. During the housing boom, the banks gave loans to people that couldn't afford to pay. Those people applied for these loans for reasons I can't fathom.

Answer 7

The people saying that Bush's economy is booming are the same people that think Trickle-down economics work.

In other words, filthy rich idiots.

Answer 8

And the same way that the stock market hit an all time high and employment is at an extremely low level.

Answer 9

because dummies bought houses they couldn't afford.
thinking they could turn them over for a profit
but the price they paid in the first place was inflated.
that is what greed, combined with no understanding of real estate will do to you

Answer 10

Ask ur stupid prisedent where is us money which is spent on free smart bombs and weapons to israel to help them kill innocent lebaneese&palastinian kids,and spent on a wide spreaded army in Iraq & Afganistan ?if all this money is pumped into us economy ppl would find extra money to pay their home loans.