If the Economy is going as great as Bush and the other Republicans say it is why do we have so many Home ?

Question

foreclosures - highest ever, along with the highest personal and corporate Bankruptcies and so many companies going out of business today and personal savings at a -1% which equals that of the Great Depression!

Answer 1

I used to be a financial adviser, and it's a fact that many people go out and buy the most expensive house they can possibly qualify for, leaving NO margin for error. Hell, their friends and parents are telling them that they're SUPPOSED to do that because houses are such great investments.

Add to that recent trends in mortgages -- variable rates, no down payment, interest only, home equity loans etc. Potentially good tools all, if used prudently, but of course many people misuse them and allow themselves no room for error. Then a layoff or career change or risky entrepreneurial attempt occurs or even just a hefty increase in property tax and BAM! -- can't make payments.

There's no question that the relatively high rate of foreclosure is primarily a function of the great increase in financing options -- financial opportunities that can be, and are, abused by many people.

Answer 2

Economies move in cycles- 100 Years, 50 years, or 30 years. A President who's in office for only 8 years has little impact on the Economic Cycle.

The Clinton Administration restructured "Bonds" and we're seeing the effect that this restructuring has today; the foreclosures, and soon to be high debt prices. Since this restructure had the T-Bond lower to a 10 year Max ... well, we're really going to see chaos in 3 years. Additionally, it was the Clinton Administration that did away with the "Glass Steigal Act" which was enacted after the Great Depression for the economies protection.

In short, to truly see why we are where we are, you have to search past what a short-term figure like the President (4-8 yrs) and research the long term employees (Chairmen of Fed ... Open Market Committee Members ... and Corporations histories).

Answer 3

Because many americans are fiscally irresponsible and can't control their deficit spending. You can't hold the president or Congress accountable for what individual people do financially, much less for the mismanagement of a business that leads to a bankruptcy. Stop blaming the government or the president for everything that's "going wrong" and try to understand that people have to take responsibility for their own lives and finances, and that businesses fail not because "the economy is bad" but because they are not always run well, and that is the consequence in a capitalist system. If anything, trying to cut taxes and control spending (though they have not done the best job ever) would actually HELP most people and businesses. Stop believing all the liberal crap you hear. Thank god the government does not control our lives and finances. They should stay the hell out of them.

Answer 4

Two answers for you: 1) Don't confuse the current state of the economy with arrogant consumer confidence. In other words, people receiving an increase in pay, and then running out and spending beyond their means. 2) What states due these averages represent? I will bet you a dollar to a donut the highest levels of foreclosure are in Blue states. When we received are Federal tax cuts, those of us in Blue states saw a significant increase in state taxation, in actuality loss more money in state imposed taxes than we gained in Federal tax cuts. The danger in this is that these are hidden taxes i.e. increases in sales tax, gas tax, just to name two. So, while the perception was, I was bringing home more money, it takes a while to realize even more was going out. This is nominal income versus real income.

Answer 5

Because many indicators lag the economy as a whole. The recession 2001 was over before anybody noticed it, because joblosses and wages took a while to catch up with the decline in production. The reverse is true during the recovery.

Answer 6

Down the drain....yet besides the certainty that Bush is an fool and the Iraq conflict is (partly) to blame, the financial device regarded for worry via taking off up "uncushioned" credit strains and lending funds even to unlawful immigrants....however the US will stay to tell the story no longer purely this recession yet additionally somebody as small, insignificant, idiotic yet smug as Bush! playstation : Come on YAHOO censors hit me back!!!!

Answer 7

George Bush did not out and buy houses he could not afford.

First, people are complaining that companies are making to much profit, now you complain that too many are going bankrupt. Ugh!

And the fact that you compare ANYTHING today to the Great Depression tells me a lot about your understanding of economics.
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Answer 8

The GREAT economy is only benefiting 10-25% of us. Families in the upper middle and upper economic group are seeing great growth. Others unfortunately are either staying the same or losing ground. We are told about thousands of new (low paying) jobs and we're seeing thousands of better paying jobs disappear. The Great economy is simply not evenly distributed.

Answer 9

A report on the economy does not take in the financial problems of every last citizen.
In a strong economy, some will be in poverty. In a poor economy, some will become billionaires.

Answer 10

economic success can be meaured in different ways.

some of those ways dont look at number and extent of poverty

for example gross nat product