Posts Tagged ‘financing’

Reasons the economy is not real close to recovery

Thursday, October 9th, 2008

1) We are only now begining to witness the unemployment numbers catch up to the financial crisis. This months 6% was vastly understated, and reflects among other things people giving up on searching. Those numbers will spike dramaitically over the next 2-3 quarters. In other words, people have just started losing their jobs. That will also lead to declining wages, so less people working and those working earning less.

2) Most of the adjustable rates taken out at the peak have yet to reset, meaning we will soon be inundated with tons of the types of adjustments that have already crashed the financial markets to date.

3) Many millions of people, even were they willing, are no longer capable of receiving financing. Those days of easy credit are gone, and lending standards have and will continue to tighten drastically. Meaning les competition for homes, already flooded with unpurchased homes, unbought new construction, and foreclosures.