I just finished watching president Obama at a press conference. He talked about Libya, the budget, politics, and the Japanese earthquake. The part that got my fullest attention was when he commented on housing. He stated something that was true, but not thorough
HOUSING PRODUCT VALUE
We have 5 trillion dollars worth of product that comprises the housing market. Anything that affects that moves slow. The problems of homes not being worth what is owed on them is recognized and rampant across the nation. He claims it was spurred on from new construction all over the United States meeting up with the recession implying that the glut is a problem.
NOT EASY TO FIX
He also said quite clearly that this problem is going to take some time to correct. He met with Warren Buffet a financial mover and shaker who promotes the economy as going to be robust and is making its way there. Buffet shares that the housing industry isn't responding very well. Obama tries to explain why
OTHER CAUSES OF THE PROBLEM
Didn't the banks and Wall Street artificially drive up the pricing by prompting irresponsible loans to anybody that was standing and breathing? Didn't they induce and market programs for the public to borrow against their homes commonly called HELOC's or Home Equity Line Of Credit? Why is that so not talked about anymore?
WE ALL PLAYED A PART...SOME MORE THAN OTHERS
Yes, Americans were tempted by these attractive pitches of having wealth quicker, faster, cheaper and better and took the bait. Yes, greed kicked in for millions of people who accepted the campaign as presented. When someone is selling drugs for instance, it is customary to go after the drug suppliers and dealers first which cuts the supply to the user. Then the user has to look elsewhere for whatever it is they are looking for. Promising get rich schemes promoted by financial institutions to people who work 9-5 all week long was an abuse or position.
OUR PROTECTORS WERE ASLEEP
The governmental guidelines and restrictions were ignored. We even had watch dogs agencies in place to prevent banks from becoming too zealous. What happened to them to them doing their jobs? You only hear about their non-response after the fact. Bear in mind it is not just one agency, but all of them
SAME PROBLEM...DIFFERENT STORY?
This came up before in the form of 911. Different agencies were gathering data and ignoring it. If that wasn't bad enough, they wouldn't share it either. Consequently, a small handful of terrorists were able to execute a plan that cost us trillions of dollars in damages. Some of the effects are felt to this day.
America is as great as its people. Its people are only as great as their leaders. the leader's have to come through or we all lose...