The real problem…

Overvalued housing around the USA.
Think about it, foreclosures, devaluing economy…

There is not any “bail out” plan that is going to solve anything. (Besides like I said in the previous post the bail out plan was a temporary fix that had absolutely nothing to do with the real issues and was NOT going to help the real sufferers, homeowners.)

What is the real issue? What will fix the problem? What is the foundational issues?

Over valued homes. Right now homes are over valued by 50% and greater in some areas.
Te problem was not that people could not afford the over priced homes, or at least not originally…you will see how overpriced housing affects everything else!

People were then getting loans to buy these really nice but over valued homes….

These loans were more debt.

So what is next?

2 things:
1. time. Just relax. It is inevitable, people are going to lose some money and it is not going to be pretty. Over time in the long haul we will be back to normal.
2. but first we must see the housing market change and adjust. Not too long ago, the housing market was the place to be! Homes that could have been built for $100K were being valued for $!M and more! The market was a boom and everyone and their brother was getting on board, greed cycled. Rich people at first were buying these nice homes. And eventually Mr. and Mrs. Jones were buying over valued homes, because even the cheaper homes that would have cost $10K to build were being marked up for $100K. Greed is a vicious cycle. Keeping up with the Joneses, anyone who was not selling homes (or winning the lottery) was taking out loans to afford thier homes.

More debt.

The real problem is not in Wall Street, but on Main Street. Banks closed (and sold to either Chase or Citi) and foreclosures were everywhere!!!!

Now Wall Street is seeing a tiny bit of what Main Street is feeling. Wall Street complains about this despite America’s strong economy and still strong when you look at us on a “bad day” compared to the entire world.

Forget about Wall Street, start dealing with the real issues of over priced homes on Main Street. Give it time and dont worry too much. But DO NOT support bail out plans that only benifit Wall Street and politicians. Tell your politicians that you want a plan that benifits homeowners, not their own pocket books.

Suburban Utopia?

Is suburbia really America’s favorite living community?

Because I hate it! I grew up in West Virginia, “mountain momma, take me home.” My neighbors were very few, and my family had a lot of land to do with as we pleased. We were responsible enough to take care of our land.

Today, now that we live in the “city,” we are surrounded by houses. None of the homes have
sufficient land. Sure we have neighbors, but that is good and bad.

There are researched problem associated with suburbia:
Everyone has a pet!
A lot of noise
A lot of traffic
A lot of kids running around busy streets
Lack of diversity
Easier access to drugs and substances
Pricey
Pollution
amount of electricity used to power homes
Nothing ECO-friendly or Green
Increase in violence
Increase in obesity

Articles:
http://www.enquirer.com/editions/2003/07/09/loc_sprawlhealth09.html

http://www.humanevents.com/article.php?id=17160 (advantages not very convincing)
http://www.plannersweb.com/sprawl/prob_tax.html
http://www.sierraclub.org/sprawl/resources/challenge/reports.asp

Funny video: