Views, opinions and thoughts on, mostly, Plainfield Public Schools by a concerned resident and former PPSD parent. If you think that what has been written here today is important, please pass it along. If you would like to get in touch with me directly please e-mail me at: pellum9@aol.com, I'll try to respond as soon as possible.
*Formerly published as the Crescent Times
Maria -- there are several factors feeding this trend. Observations I would add to this article:
1. Banks are super picky now about lending. People who before would have qualified in the previous lax times, now don't quality.
2. People don't want to buy in the iffy market. It's better to rent and see what happens.
3. Rents are going up because taxes, services are going up. Most landlords wrap up those costs into rent.
4. There are people out there like me, who used to be homeowners, but lost our homes. It takes years to recover from that before a bank will talk to you. Given all the foreclosures, those people have become renters.
5. Individual saving is down. People are struggling with an effectively lowered wage against raising fuel, food and taxes. Put on top of that you get nothing from saving -- interest rates are low, given the Fed's low interest rate. The Fed is trying to spur housing purchases, but that translates into people getting very little interest when they are saving.
What is very troubling is:
1. The banks, along with government policy, created the environment that the housing crisis could happen. People bought homes they couldn't afford. The banks made money.
2. The banks got into trouble, the government (us) lent them money. The big banks have paid it back. The banks made money.
3. The Fed lowers interest rates to unprecedented levels, the stock market shows "gains" (options, etc.). The bank makes money.
4. Now banks (private equity), with the government's support, are going to buy these distressed homes, cheap, and make money renting.
1 comments:
Maria -- there are several factors feeding this trend. Observations I would add to this article:
1. Banks are super picky now about lending. People who before would have qualified in the previous lax times, now don't quality.
2. People don't want to buy in the iffy market. It's better to rent and see what happens.
3. Rents are going up because taxes, services are going up. Most landlords wrap up those costs into rent.
4. There are people out there like me, who used to be homeowners, but lost our homes. It takes years to recover from that before a bank will talk to you. Given all the foreclosures, those people have become renters.
5. Individual saving is down. People are struggling with an effectively lowered wage against raising fuel, food and taxes. Put on top of that you get nothing from saving -- interest rates are low, given the Fed's low interest rate. The Fed is trying to spur housing purchases, but that translates into people getting very little interest when they are saving.
What is very troubling is:
1. The banks, along with government policy, created the environment that the housing crisis could happen. People bought homes they couldn't afford. The banks made money.
2. The banks got into trouble, the government (us) lent them money. The big banks have paid it back. The banks made money.
3. The Fed lowers interest rates to unprecedented levels, the stock market shows "gains" (options, etc.). The bank makes money.
4. Now banks (private equity), with the government's support, are going to buy these distressed homes, cheap, and make money renting.
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