Is It Really Ludicrous?

When the Right brothers invented their flying machine, everyone called them crazy.

When Kennedy said that we, as a nation, would be sending men into space, many Republicans ridiculed him.

When NASA said they were sending astronauts to the moon, a lot of people were gearing for the worst.

When we, as a nation, sent the Pathfinder to Mars, there were those who tried to stop it.

Now Gore has taken the stand and is trying to convince Americans and our government to switch over our energy to cleaner energy so we will never be dependent on OIL again within the next 10 years. The Republicans and the Oil corporations and oil interests groups are calling the idea 'LUDICROUS!'

We are a nation, a country of impossible dreams coming true. This is one dream that is very possible.

Changing City Codes Creates a False Picture

In a news report, by Patrick Rucker on ABC news on line, the government is ecstatic because housing building, in New York, is on the increase.

But was it the economy that caused a stream of new home frames popping up in New York?

'NO!'

Than what could it be? Why would new homes suddenly begin to spring up when the housing industry has been hit so hard with dropping home values, foreclosures, and a very high number of over-stock of unsold homes in the real estate market?

The answer is very simple. New York City changed their Building Codes to allow new housing development in a failing economy even though there is a large number of vacant-unsold-homes, both new and old. The U.S. government are excited that 'Building Permits' climbed to 1.091 million and that construction is already begun. The Bush Administration will be gearing up to paint that 'Rosy-Picture' again.

But what will such a move do to a troubled, failed economy? Would viewing this move as an economic progress, improve our economy? Would the speculator, traders, and buyers in the Stock Market see this as a good thing? And even if they did, would this be real proof that the economy is getting better? Or is this just another illusion, trick-of-hand maneuver by a state trying to grasp at straws?

Are we going to see other states in the Union coming up with similar changes in their Building Codes, only to burden an already failing housing industry due to the economy?

Well does the term Don't-count-your-eggs-until-they've-hatched ring a bell?

World Economy Prove Bush Wrong

Today, Tuesday, July 15, 2008, President Bush gave his spin on how great the economy is. Today, Bernanke gave his testimony in front of the Senate Banking, Housing and Urban Affairs Committee on how good the economy is 'NOT!'

But there was a more pressing matter that occur today, which might have a lasting effect on the economy. One that can make the growing recession to last longer than expected. An irreversible downward spiral in the Stock Market effecting the world economy. The Dow Jones Industrial Average closed down more than 90 points, falling below 11,000 for the first time since July 21, 2006. By itself, it may not leave a lasting impression, but with the "economy continuing to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food and some other commodities," the effects could last longer. Leaving this generation to deal with something far worse than a recession. Add to that the 'ever-ending-U.S.A.-shrinking-dollar' that sank to a new low against the Euro.

Although Bush and his administration keep painting a rosy economic picture, they just cannot hide the 'Ferocious-Fanged-Recession-Monster' from showing it's ugly head.

Even with the Feds financing Fannie and Freddie with a Billion, confidence in the U.S.A. economy declining causing the stock markets in Asia and Europe to drop. The repercussions were felt in Britain, Germany, France, Hong Kong, Taiwan, Japan, South Korea, India, and Australia. It is also believed that China felt it's effects in some of their stocks. It has been rumored that China holds stocks of Fannie and Freddie.

Economics Good Cop, Bad Cop

While Bush was putting his usual spin on the condition of the economy, convincing those who would believe anything that the economy is on the up swing, Bernanke was in-front of the Senate Committee in a position where he had to tell the truth.

Having to tell the truth and nothing but the truth, Bernanke stated to the Senate Committee that the Economy is still sliding downward and that the Inflation continues to soar.

If the president were under Oath to tell the truth and nothing but the truth, his speech would have painted a different picture of despair and the trouble yet to come. But Bush is in a position where he can say anything to the same people who are being forced out of their homes, to the people who are cutting back on essentials to pay for gas to get to work, to the people who will have had to rotate their bills to pay for heating oil before the cold weather comes, to the people whose home values have dropped (in some cases as much as $250,000.00+ drop in value for the average middle class home), to the people who 'Quick Sold' their homes for hundred thousand less than what was owed on their home mortgages causing their neighbors home values to plummeted. Yes, Bush is a politician. Not the smartest one in the bunch, but he is a spinner.

Looking back on my days in school, I remember it was the truth of events and dates that are studied in history. Bernanke and the economy will be in history, like the events that led to the depression. History is 'Never' based on a spin.

Declining Stocks, Smoke Screen Fixes

The AP Business Writer, Tom Paradis, on the ABC news web page had his take on the decline of the stock market today. Even the Billion that the Feds put into Fannie and Freddie, could not stop the traders and buyers from loosing faith.

The Financial Institutions will have their quarterly reports in soon. All those homes that went into quick sale with debt that was forgiven in $100,000.00 to $200,000.00 range for each home, and causing their neighbors homes values to decline will be showing it's ugly head in those reports as money lost. Also all those foreclosures where the money is lost and the banks have to sell them for a lot less than what is owed will also show itself in those reports.

Earlier today, Chairman Bernanke was seen as the hero for the failing economy and the home mortgage foreclosures. However, even the Fed's new rules for the lending companies can not turn around this economy, because the new rules only apply to 'New Future Home Loans'. There is nothing to stop the next wave of the adjustable that are coming in current existing mortgages whose times are closing in for the rate change. Also the home mortgages whose time is still one to five years away for the adjustable rate change are not going to get any help either, since their loans existed before the new rules were put into law. Nope, the only ones getting the help are those who either do not need the help or the future new home owners.

The Financial institutions are refusing to even consider helping the borrowers get into a 30 year fixed that they can afford. Yet, the monthly on the 30 year fixed would be more affordable, which means fewer foreclosures and better economic times. But those mortgages whose adjustable will be changing in the next 6 to 12 months, will not be affordable once they adjust. Therefore there will still be plenty of foreclosures on the horizon. In the mean time those same homes have fallen in value since homes in near by communities have 'Quick Sold' their homes for a lot less than what was still owed on the homes and $200,000.00 to $300,000.00 less then what the homes were valued at 1 to 3 years ago.

My home has dropped in value $250,000.00, making it valued at $100,000.00 less than what is still owed in the mortgage. A friends home had dropped in value $300,000.00, making her home valued at $200,000.00 less than what is still owed on her mortgage. We are all stuck between a hard place and a rock of not being able to sell because that would mean giving our home away and still owing monthly payments for years to come at the adjustable rate. Unless the company is willing to forgive what was lost with the 'Quick Sale'. But then the following year the amount 'Forgiven' would have to be counted as income. Imagine having to count the amount forgiven of $100,000.00 to $200,000.00 for income in your taxes. Yep, just call me a Hertz. I'll climb into the cemetery grave hole, by myself.

I bought my home, when both my husband and I had a stable job, stable retirement, stable everything. And only went for what we could afford. Only after my husband's job was outsource did we fall into trouble. And with the loss of medical insurance the medical bills piled up, while my husband worked temporary high tech jobs in his field. Grasping for straws, we refinanced. We stated that we wanted the 30 year fixed. We were told we had the 30 year fixed. When we were signing the papers, we were reassured that it was the 30 year fixed, and that the lending institution just had it worded differently, but that it was still the 30 year fixed. Well, We found out a month later, 'IT WAS NOT' a 30 year fixed! And we are now stuck. It was our word against theirs. And no one wanted to help us. Not even the new company whom bought our account 6 months after that from the cheating company.

We got ripped off, and cannot get out of it. The Financial institution who bought our account in November 2007 when the mortgage fiasco finally came out and foreclosures were abundant, is refusing to give us a 30 year fixed, which the other company, they bought us from, ripped us off when they lied to us in the first place.

Those new laws, Will--Not--Undue any of the current bad lending practices that effect the current mortgages whose APR's are coming up. And there is no way to stop them.