Sunday, August 22, 2010

Permanent Housing Collapse In US?

In our mad rush to copy all that is American do we really want to end up like this?

Here is a disturbing report from

"The recent chaos that erupted when 30,000 people waited hours in the Atlanta, Georgia heat to receive applications for subsidized housing is a mere symptom of a worsening national problem.

The housing market appears to be on a never-ending downward spiral, with the much-discussed "recovery" always around the next corner.

The reasons that such a recovery is impossible at the moment should be obvious: millions of people do not have jobs; millions of others work only part time; millions more work fulltime but make very little money; and additional millions fear losing their jobs.

Under these circumstances, there can be no recovery in the housing market, which will continue to contribute to the broader depression-like economy in the U.S.

Interestingly, an op-ed article in The New York Times, entitled The 30 year Prison, actually took these realities into account when analyzing the housing crisis. The 30 year mortgage is the cornerstone of the residential housing market, which allowed millions of Americans to become homeowners.

But the economic conditions that allowed such a mortgage are disappearing. According to the op-ed author, Katherine Stone, one crucial problem of the housing crisis is that "’s mortgages are designed for yesterday’s borrowers."

If you really want to observe what is happening in the US housing sector see the full article at:

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