The RE Subprime Mortgage will collapse the economy?

Question

Much of the growth was fueled by a "robust" RE market the past 6 years. Now it is coming apart like the proverbial house of cards. Well actually mortgage defaults going up has been in the news for at least a year, things are just coming to a head now.
Coupled with reduced domestic funding available to finance this war for oil, lots of municipalities have had to cut way back. I am an LPN. I work for my state. The facility I work at has lost about 10% of the staff due to cuts. Other facilities have experienced similar situations.
I work four 10 hour shifts. It is hard work. Some of you who don't know better, will say I'm a lazy union employee making $20 an hour for sitting on my butt. Other than being a union worker, none of that is true, not of me or any of my co-workers.
This means good jobs paying $14-16 per hour have vanished from your community. The lower middle class workers that make your community function the way you'd like.

This hurts everyone. Workers once earning $16 an hour, with benefits live a very different lifestyle from those working for $8 per hour without benefits. Less income, declining tax revenues. Will this be what collapses our fragile economy?
As fuel now jumps past $2.50 per gallon, is there any doubt we'll be fleeced out of $3.50 per gallon this summer? Has gas prices, which have risen an average of 50¢ per year finally taken its toll on the middle class?
How could you possibly still support the party of greed and corruption? Haven't you been burned enough? How many moire have to die? How many more kids have to go hungry? WHITE CHRISTIAN kids. I know many of you don't care about blacks and Hispanics, but many of YOUR OWN KIND have suffered tremendously as well. YOU have suffered, yet sadly you don't believe it or still live in a fantasy world of wealth, power and respectability here on Y!, even though we know that simply isn't true and never was.

Six minutes. No answers. Too cons many have to sound out the big words?

Answer 1

http://www.helium.com/tm/226327/planning-buying-months-problems

Answer 2

The economy is pretty weak. I wouldn't say collapse, but then again I wouldn't say robust either. I know gas is going easily hit $3.50 this summer. That's why I drive a 2006 Hyundai Accent 28 / 37 and my wife drives the "big car" a 2007 Hyundai Elantra 28 / 36.
Reality is the Elantra gets about 25/32, but the Accent is right on the EPA estimate. I could afford more, and because I get such good mileage, I'm not concerned too much over prices. I'd be concerned if I drove a SUV however...

Answer 3

What does the religion or race of the kid have to do with anything?

You complain that "WHITE CHRISTIAN KIDS" are going hungry. What a racist and bigoted view. And you are an LPN. In my opinion, a person who is so racist and bigoted should never hold a position where they have to provide care to the public. That person's views will cause them to provide lesser service to those that they hate.

Lets look at what you are talking about. Yes, sub prime lenders are being pretty stupid with their lending. However, it takes two to tango. A lot of people borrowing money are being pretty stupid as well. They are jumping into loans without investigating the responsibilities and ramifications. There are people who are getting mortgages who do not have jobs. The lenders are stupid to give these people loans and the people accepting these loans are stupid as well for taking them.

One of the biggest problem with the US is that people are just too eager to take on debt. People are not saving money. They are going deeper into debt. According to a recent government survey, the past year was the first time since the great depression that more people in the US went into debt than saved. I know one person who makes about $50,000 a year and has $80,000 in credit card debt. He rents a house and has all sorts of nice things in it. Of course, those nice things won't last nearly as long at the credit card debt.

Too many people are spending tomorrow's paycheck today. When tomorrow comes and the paycheck has to pay for what they bought earlier they will suffer.

Answer 4

I am ready to snap up a few good homes when that happens.