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Thread: weekend commentary ... past 'speculations' now showing in 'hard numbers'

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    Banned Melonie's Avatar
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    Default weekend commentary ... past 'speculations' now showing in 'hard numbers'

    (snip)"Fannie Mae, the country's largest source for home mortgage funding, estimates that nearly one-third of the total outstanding mortgage debt is set at an adjustable rate. " (snip)

    "While the delinquency rate for conventional prime loans remained low at 2.25 percent in the first quarter of 2006, Mortgage Bankers Association figures show it as as much higher—11.5 percent and 12.2 percent respectively—among those who took out sub-prime mortgages or mortgages insured by the Federal Housing Administration, which are aimed at lower income buyers. More than one out of every 10 homebuyers with this type of mortgage is behind in payments—some by three months or more"(snip)

    "nearly 570,000 properties were in some stage of foreclosure; at that rate, nearly 1 million properties will have entered foreclosure this year"(snip)

    "In Georgia, there was one new foreclosure for every 127 households in the first quarter—a 300-percent increase from the year before." [annualized rate one new foreclosure for every 32 households - sic]



    (snip)"For the first time ever recorded, Americans owe more money than they make. Household debt levels have now surpassed household income by more than eight percent, reaching 108.4 percent in 2005, according to a May 2006 study by the Center for American Progress. Consumer debt is now at a record $2.17 trillion, reports the Federal Reserve Board and consumers cashed out a whopping $431 billion in home equity last year.

    Christian E. Weller, the author of a recent Center for American Progress (CAP) report, 'Drowning in Debt,' says the middle class, specifically, is struggling. Wages have been stagnant and they're losing the battle to keep up with the cost of living. "The data shows that people are borrowing more money not because of over-consumption, but because they're caught in a bind," says Weller, a senior economist at the CAP. "In that bind, the only escape valve for middle class families is to borrow more money."(snip)


    ... keep in mind the time delays inherent in 'proving' that the US consumer economy is headed for DEEP trouble. The first quarter numbers now being released only reflect the situation prior to last April 1st. The first quarter foreclosure numbers actually reflect delinquencies which developed in the fall of 2005, with the foreclosure process adding several months to the time delay. However, since April 1st there have been three more Fed interest rate hikes, as well as significant increases in gas/oil and other prices. This likely means that, based on what has already happened from April to July but which has not yet been officially documented, will show significantly worse 'hard numbers' than the first quarter when they are released in November (just after the upcoming election BTW !).
    ~
    Last edited by Melonie; 08-13-2006 at 09:44 AM.

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    Default Re: weekend commentary ... past 'speculations' now showing in 'hard numbers'

    Me thinks those girls in Stripping General complaining about August better look to slow Septembers and November's too.

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    Default Re: weekend commentary ... past 'speculations' now showing in 'hard numbers'

    Did you catch this Blog:

    It was mentioned in the MSNBC articles.

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    Banned Melonie's Avatar
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    Default Re: weekend commentary ... past 'speculations' now showing in 'hard numbers'

    Me thinks those girls in Stripping General complaining about August better look to slow Septembers and November's too.
    Yup ... it seems like very few dancers realize the implications stemming from the fact that what we offer for 'sale' is a LUXURY item. Thus as wages / earnings stay more or less constant, while energy costs plus mortgage payments plus taxes plus insurance plus a host of other 'costs of living' increase significantly, club customers' weekly budgets are becoming stretched thinner and thinner. When the ends no longer meet, the first thing to be thrown overboard will be spending on LUXURY items.

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