Friday, January 30, 2009

US Realty Woes; Banks Hiding Real Damage?

Diana Olick writes some great articles. She's a very strong reporter for CNBC. Olick recently reported that banks are holding back on revealing the number of foreclosures they are saddled with. I have thought all along that this entire credit crisis is so huge and potentially castostrophic that no one in leadship roles has any clue where to go from here. The US version of capitalism has proven itself a dismal failure as far as I am concerned. I'm all for freedom, but anarchy is another matter entirely. The US is a rudderless ship with no captain of worth.

The moral of this story is to not buy a house anytime soon. I think the solution is going to be to try and spread out the damage to as much of the population as possible. They want people to buy homes in phases, knowing all along that there's a lot more downside to come. The sooner one buys, the more they risk. Another factor coming into play is the value of the homes on the market. It is said that foreclosed homes are often vandalized, which costs even more to repair. If someon trashes a home they no longer own, they belong in jail for 6-12 months to cool off some. If we need room for them, let the non-violent offenders off on early release. I do not consider vandalism under these circumstances to be non-violent. The situation is bad enough without spoiled adults wrecking a property in some temper tantrum, when they had no business buying beyond their ability to pay in the first place.

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