American Dream Gone Sour

[Robson]

We talk about the problems in America in abstract terms. I'd like to suggest that you read this article in its entirety about a young family in Denver that is losing their home because of the subprime loan crisis. But I suggest they are also losing their home because we have a country controlled by political parties that aren't concerned about working Americans.....but instead they are concerned about others from Mexico or big moneyed interests.

This couple who works in the landscaping business in Denver has had their income diminished by factors such as illegal immigration, that many Democrats for some reason see as a compassion issue. Except these Democrats forget about having compassion for working Americans. We have average Americans that have been manipulated into overpriced mortgages by the policies that go back to big New York money people that base their existence on making another buck off a new deal.

This is the real world, not a hypothetical world of politicians such as Ted Kennedy and Hillary and others who claim we need more cheap labor while supporting big moneyed interests. They need to get into the real world of the declining middle class and understand the real American problems, instead of just their politics. We need solutions that looks after Americans.

Frankly after reading this I'm disgusted. I dare you to take the time to read this.

http://www.msnbc.msn.com/id/17709131/

CUT.....

Hit from behind
For a few months, anyway, the Snearys kept pace with the costs. But as 2004 ended, Tim’s employer — who had already laid him off and called him back — sent him home for good.

With little saved, the family immediately fell behind.

By now, their loan had been sold. The new loan servicer, Homecomings Financial, told them they’d need to catch up and set up a payment plan. The Snearys’ monthly bill jumped to $1,920.

After three months, Tim found a new job for two-thirds of his previous pay. A tax refund helped. But the larger payments “had us strapped so tight it wasn’t even funny,” he says.

So Angela took on more hours.

In July 2005, she pointed her Saturn into Denver’s morning rush. Trying to merge into traffic on I-25, the car was slammed from behind and spun into the concrete divider.

Doctors said Angela would be OK. But disabling headaches kept her from working for weeks. The couple fell further behind.

The lender set up a new payment plan. Monthly costs jumped to $2,100.

If the Snearys could make it through 2006, maybe they could refinance and dig out.

Now, though, there was another problem.


CUT......

[Vexatious Ape]

1. I started to realize this when Clinton signed NAFTA

which was nothing but a Right Wing wet dream to begin with and he's smart enough to know that. He told the unions and the working class to go screw themselves and went on to embrace all that so called "free trade" nonsense.

[MADem]

6. Interest only loans, balloon loans, adjustable rate loans, all sorts of bullshit.

Whatever happened to the old rules--you know, spend no more than 25% of your income on housing; take into account things like the tax rate, fees and expenses like water, trash pickup and so on, how much the joint will cost to heat...

When you have less house, you can afford to save. If you have six to ten months of savings in the bank, then you're better able to bounce back from these ghastly situations.

Everyone is so enticed by the bigass McMansion, when they'd be better off in the little bungalow. Maybe the kids have to share a room, but they'll all have to share one if they can get into the shelter.

But there's not as much money to be made selling affordable little bungalows.

[Robson]

12. So why do some think a poorer America is a better America?

I agree that some young people now aren't satisfied unless they have a McMansion as their first home. Also that loan terms and mortgages were too liberal and enticing and allowed some to go into excess debt. This split level at $200K is not inexpensive but it isn't in that McMansion category. The problem with this couple is that they only earn $50K per year. When I bought my first house in the 70s in the suburbs the price of a quality built 15 year old small home with garage with half acre was about 2 times my single gross income but interest rates were higher.

The ratio is far higher now, as it is 4X the combined income of this young couple. That makes this house about 8 times a single income. The root problem is some of us have accepted the belief that "free" but unfair trade is a necessity evil and it will always end up being for the best, and that imported cheap labor is good for the USA. As Lou Dobbs says, it's the multi-national capitalists with all the money and who will stand to benefit that want Americans to believe that nothing can be done to stop globalism. They're wrong as our government has an obligation to enact policies that work to the benefit of citizens and taxpayers.

We're on a trend where that first home will go from 2x income in the 70s to being completely unaffordable for many working couples. That's where we are at now thanks to policies that have allowed our labor market to be exploited and not benefit from increases in wages because of labor shortages. Instead a continual influx of labor because of illegal immigration and temporary visas puts the perpetual lid on our workers wages, while CEOs continue to rape shareholders and employees with excessive compensation.

[ixion]

2. life in sharecropper 'Murika

if you're not a billionaire, you're screwed. :-(


Ever read "The Grapes of Wrath"? It's where we're headed, times 10.

[Robson]

13. Agreed

The trend is not good for average Americans. It's become more difficult and expensive to get a college degree. Even obtaining a college degree does not guarantee immunity from wage pressure as jobs higher up the food chain are being devoured by outsourced or imported labor.

There is only one very exclusive business segment that appears to be doing exceptionally well in America, and those are what I refer to as the New York City money people who skim off percentages as commissions or beneficiaries in the huge deals that are made on Wall Street or are the investment bankers and traders and others that are participants as intermediaries in the deal. Trillions of dollars are being taken out of the economy to the benefit of only this elitist group. This is money that often ends up off shore in foregn investments. But most of America either loses it or experiences no benefit. Today we have capitalism run amuck today.

[ComerPerro]

3. I find it pathetic that you used this family as a prop to scapegoat immigrants

[Robson]

4. Correction....losing their house not because of "immigrants", but greedy businessmen and illegals

Highlighting that young Americans are losing their homes and facing cuts in pay is not scapegoating anyone.

If anything the greedy businesses that hire ILLEGAL immigrants should hefty face fines, imprisonment or deportment to Mexico, etc. so they can hire Mexicans legally at will, and not cause those such as these young US couples who have a right to live here, to lose their house.

[ComerPerro]

5. and there you go again

[Robson]

8. LOL.....I can't help myself standing up for young couples trying to make a go of it.

There are 5,700,000,000 other people in this world and probably 75% of them would like to move to the USA and get a piece of our pie.

The US Chamber of Commerce and politicians would probably salivate over it, as it would mean mega bucks for business in cheap labor, new housing and growth, new voters; but we Americans would have our country destroyed based upon all measures of environmental , economics and quality of life. We'd be serfs living and working in a tiny cubical to the benefit of a tiny group of elite capitalists who would have luxury homes all over the globe.

No thanks. I want our country to exist with controlled growth that supports a quality of life and solid middle class economics for all those who have a right to be here.

[ComerPerro]

yeah. That's it. You just care too much. You and Lou Dobbs

[MADem]

7. I read the story twice, and I'll be damned if I could find a single word ABOUT immigrants in the

sad tale. It's about people with lousy credit buying more house than they could afford. It's about predatory lenders and unscrupulous real estate agents.

The immigrant agenda doesn't belong anywhere near this story!!!

But even if that doesn’t happen, the couple has reached an unexpected truce with failure. After two years of fighting to keep the house, there’s soothing relief in losing.

They can stop shouting now, the Snearys say. They can give time they’d spent working to their kids. They’ll find new jobs, a place to rent, and try to save.

The Snearys have a long-term plan, too. In a few years, they hope to buy again.

But the next time will be different, Tim and Angela say. They’ll stay within their means. They’ll borrow more intelligently. And they already know just where to find a deal.

They’ll make an offer to another family desperate to escape foreclosure.

[ComerPerro]

10. I know, right?

[MADem]

11. It's a sad and important story all on its own.

Unfortunate that anyone would want to derail it.

[SoCalDem]

9. Bankers/Lenders just need to go back to using strict formulas

in deciding who can afford to buy, and who cannot..

Used to be:

20-30% DOWN..and no fair borrrowing it.. and yes they DID check..

employment history that met criteria.. and loan figured on ONE income (highest)..

people did not end up with a brand new 4K sq ft McMansion on their first house-buy, but they could find a house they could afford, and maybe 2 or 3 houses down the road, they might end up with a big house.

There is no substitute for realistic planning..

and about the "immigrants".. (I smell fish!)

but if you are Lou Dobbs incognito.. I would say this..

LOCK UP THE EMPLOYERS who hire them.. CONFISCATE the businesses, and pretty soon there would be no "magnet" to attract downtrodden, desperate people..

and Lou.. cut yer own grass !

[Robson]

14. We need to ask why one working parent could do it all, now two working can't even buy a house

I agree but the issue is that many Americans are becoming poorer as the America is faced with a rush to the bottom and the "common denominator of family wealth" is being lowered. That's the point. As we import the third world and export our jobs to the third world we are becoming a third world country. It doesn't happen overnight.

Two generations ago American families with one working parent could buy a house, send kids to college, buy a new car occasionally and take a vacation. One generation ago it required two working parents. Today families with even two working parents can't afford this. You need to ask why. Lou Dobbs is 100% on the money on this.