[quote=Nor-LA-SD-GUY2][quote=ucodegen][quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.
I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.[/quote]
Nope it’s the same problem we had in 2008 and 2009.
HOUSING !!
In CA approx. 30 % of home owners with a mortgage owe about 100K more than they can sell for, sorry you just cannot have an economic recovery in conditions like that.
Personally I don’t know any tech people out of work.[/quote]
It doesn’t matter how “underwater” a home “owner” is. What matters is whether or not they can afford their mortgages.
Using your house as collateral for consumption debt was ALWAYS a bad idea. Very, very bad.
If these underwater “owners” need to sell, they can easily do a short sale.
HIGH housing prices (and the debt that went with them) was the PROBLEM. Falling prices are the solution. It is being worked out, but the more the Fed/govt try to intervene in the correction, the longer it will take to play out. They cannot stop prices from falling, they are only delaying the inevitable.
Our problem is a **LACK OF JOBS.** Fix that, and everything else — housing, govt debts and deficits, etc. — will fall into place.
