so many people losing their homes

In Antioch California (An area east of San Francisco), There are some 850 homes for sell. I have never seen so many houses for sale at once. Talking to realitors, people and some research, I think alot of people are forclosing on their morgages. I knew the bubble was going to pop.

I feel something bad is about to happen to our economy. I honestly blame 3 things for this. The stupid decission for the Government to raise Interest Rate primes, For the over building of Homes and last, The number of Illegals taking jobs in America for less money. You might say "Hey, No one else will work these jobs" but the only Job I know of that no one is willing to do is Pick Fruit for 20 cents a box. Janitorial, Maid or other hotel Jobs and roofing can be done by many legal Americans. Many Americans who are legal citizens are willing to do any kind of work if it puts food on the table.

Another reason why the Government should at best have a rate freeze for a few years or a permanent cap on rates, and to escort our illegal friends out of the US.

Make tougher penalty laws for companies who hire illegals.

I know this isnt very popular with some of the small business who need illegal mexicans and other nationality of illegal workers who depend on paying these guys 4-5 bucks an hour. But they're part of their own demise.

Isn't it a shame that greed is destroying our country? I worked in a place with the majority of workers illegal....the boss got them all cards and now he has his own slaves!!! I watched how the old fart got rid of his white and black workers to make room for the illegals.

I don't think there was a bubble, per se, but rather an opportunity for people to cash out their Bay Area equity to purchase multiple homes (as investments) in communities where such practice is forbidden. Sell my crack house in Burlingame, and purchase 3 homes in Serrano? Sure, why not? Good investment. And then comes an economic downturn, and the house that could've sold for $750K can't even get a looker because half the homes on the street are for sale, and no one is going to pay $750K when desperate home seller next door will sell you something better for $550K,because their home in Idaho is ready for occupancy, and they want to pay off the Mercedes and the Hummer in the driveway. They did this to themselves. The illegals did the drywall and the front landscaping, but they have nothing to do with all the homes for sale. It's called panic. And poor planning.

Please read:

US Housing Crash Continues
San Francisco Bay Area Hit Hard
Tue Jun 27 2006
http://patrick.net/housing/crash.html

This is expected outcome ....

Jen wrote:

I don't think there was a bubble, per se, but rather an opportunity for people to cash out their Bay Area equity to purchase multiple homes (as investments) in communities where such practice is forbidden. Sell my crack house in Burlingame, and purchase 3 homes in Serrano? Sure, why not? Good investment. And then comes an economic downturn, and the house that could've sold for $750K can't even get a looker because half the homes on the street are for sale, and no one is going to pay $750K when desperate home seller next door will sell you something better for $550K,because their home in Idaho is ready for occupancy, and they want to pay off the Mercedes and the Hummer in the driveway. They did this to themselves. The illegals did the drywall and the front landscaping, but they have nothing to do with all the homes for sale. It's called panic. And poor planning.

Great points, Jen

Trickle down effect at it's best.

I must agree with Jen on the relationship between the illegal immigrants and the housing bust - nearly zero. I say nearly zero because if anything the workers have been a boon that has lowered the cost of maintaining those houses and actually saved some people from foreclosure. Erase "they took our jobs," and "they depress our wages," etc. from your mind - economic nonsense.

I also like how she mentioned "poor planning" and "panic".... For the uninitiated: Welcome to the business cycle! Lower rates = boom. Raise rates = bust. So why not just leave the rates low? Ah! Because what the Fed is doing is creating money out of thin air. Inflation is a bi***, especially for those with the lowest incomes.

any time you can spend fifty thousand building a house..and some fool pays 300 thousand for it..yes it will bust...but that is common today...when banks loan money to people who could never pay it back...and often that bank loan officer is in with the real esate agent who sells the house...i have seen several houses sell to out of town folks..for 250 thousand that was selling for 50 thousand 2 years ago...and hundreds of these houses are now empty...and one day will sell for pennys on the dollar..bank loans money...you cant make payments,,bank forecloses...banker wife buys your 300 thousand dollar note ..for 5 cents on the dollar...sells house to next sucker.it starts over

Clifford,

There are fools out there to be sure, but how did the banks offer these people such a dangerous amount of money at such a low rate? The banks are being subsidized by the State.

For example, let's say I want to build a house in...I don't know... a hurricane-prone area. Sob story of mine is that nobody will give me insurance because it's too risky. Bah! I'll just go to Uncle Sam who has plenty of dough (since he "bakes" it himself). Voila! Now I have a front row seat to Hurricane Katrina. Yipee!!!!

There will always be some fools out there, but the effect is magnified at taxpayer expense.

yes the goverment is behind this...just go price things..inflation is over 30 per cent per year..some items over 50 per cent..but goverment claimes 3 per cent....goverment is printing money full speed,,to cover up inflation and job loss from free trade...they claim job creation..but these jobs dont pay nothing...this entire ecomnoy will crumble...warren buffet said buy gold not long ago...paper is not money...look how much paper him and bill gates just gave away...the working wages in america compared to prices is at pre 1900s level...and the goverment is trying to cover it up...

Clifford,

I won't argue over details, but the near economic outlook looks grim. Luckily history shows that a lots of predictions can change over a relatively short time period, so hope remains. If you are looking for a good source of economic reading, I suggest www.mises.org as a plentiful online book source. Lots of reading that you can download there as well.

this was a really good site ..i am in the process of reading all the articles..they containe some good informantion

kabarnet...read the article about the riseing price of gold..it shows what money really is...

clifford wrote:

kabarnet...read the article about the riseing price of gold..it shows what money really is...

I trying to figure out what the deal is with the recent fluctuations with gold. I think other people aren't sure where the economy is heading.

As far as the value of money, check out historical M2.

This is all logical.

I hope interest raises to 6.5% within a year.

warren buffet said on tv show...to stop puting your money into u.s. paper...buy gold..i noticed a week later gold was up...but gold does go up and down...but the dollar is based on the price of gold...as the goverment prints more money gold goes up...if you would have bought gold instead of other investment in the 70s just think how much paper you would have now...the price of gold remains the same..it just takes more paper to buy it...

I would be happy if bubble shifts from housing to gold ....

KBarnett wrote:

I must agree with Jen on the relationship between the illegal immigrants and the housing bust - nearly zero. I say nearly zero because if anything the workers have been a boon that has lowered the cost of maintaining those houses and actually saved some people from foreclosure. Erase "they took our jobs," and "they depress our wages," etc. from your mind - economic nonsense.
I also like how she mentioned "poor planning" and "panic".... For the uninitiated: Welcome to the business cycle! Lower rates = boom. Raise rates = bust. So why not just leave the rates low? Ah! Because what the Fed is doing is creating money out of thin air. Inflation is a bi***, especially for those with the lowest incomes.

Very easy for a silver spoon fed homeowner to say. But low level, entry level and formerly well paid jobs in constructiop have been ripped from Americans and given to Illegals at slave wage sclaed with no benefits. Yeah,,you are doing well and those who were lucky enough to have eductaional opportunities, but there are millions of Americans who have effectively been cut out of the job market. And your home equity is not putting food on the table for them, quite the opposite. I suggest your "economic nonsense" is fueled by your experience. Sometimes just maybe,,you should get out of your BMW or your hot tub, put the cigar down and take in what others not as fortunate as you are doing. In other words,,take your MBA and shove it.

Whatever: I couldn't have said it better myself!!!! You have pinpointed the big problem in the Bay Area. I hate the American workplace anymore....it has become a place of slavery depending on where you work, if you are unfortunate enough to work where the majority are Mexicans, then you will not have many benefits and lousy pay...not like the good old days where one could support their family.

the reason so many jobs went to mexicans...americans are so book smart with no common sense...one example,, to get into carpenter union or other trade unions ..you need high school or collage diploma..now them same jobs are done by people who cant speak english...americans think school is the answer to every thing...kids come out of school...without no common sense...and are unfit for any job..that dont spend all day siting around staying cool...90 per cent of work to be done in any country,is manual labor..