The crisis of middle class America

Discussion in 'Politics, Religion, Social Issues' started by Eraserhead, Jul 31, 2010.

  1. Eraserhead macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #1
    An interesting read from the Financial Times today. Seems pretty serious stuff and sad too.
     
  2. supercaliber macrumors regular

    Joined:
    Aug 9, 2007
    #2
    Sorry, I read the story, don't agree with its position at all.

    This family makes 70k a year, they bought a home for 50k 21! years ago.

    Now they are arrears in their payments? Why? It isn't because of a sleep apnea machine, that is ridiculous, they cost at most a couple hundred a month.

    Their own persona decisions is where the real story is, not that they are failing to live the dream. The only way they can make as much as they do and be late on their payments is that they have made bad decisions. Simple as that. There is nothing in the story that points to any other conclusion.

    BTW, they make plenty to pay for a 100k mortgage, so this story simply doesn't add up.

    I have a great friend that makes 160k a year, he hasn't paid his mortgage for 18 months hoping for a mortgage adjustment. He will lose his house, you gamble with real estate and it doesn't always work out, simple as that.

    What is funny is that my friend and this couple in the report are staunch Democrats. Both of these couples don't blame themselves for refinancing their houses to spend money they didn't yet earn. Now when their financial gamble didn't work they are blaming the system.

    This guy wants to blame the problem on a broken system, notice how he said people were hounding him all day and night to refinance. He doesn't blame himself for the inferred refinancing, though the article doesn't explicitly say he did refinance, i wonder why the author would omit that likely fact.
     
  3. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #3
    Yep- it's all because they're Democrats. That's the reason. :rolleyes:

    How about this? How about banks stop offering refinancing to people they know can't afford it? I'm sorry, but it's a two-way street.
     
  4. kavika411 macrumors 6502a

    kavika411

    Joined:
    Jan 8, 2006
    Location:
    Alabama
    #4
    Could not agree more. A mortgage/homeownership is not a right.
     
  5. Eraserhead thread starter macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #5
    The Financial Times isn't exactly known for its left wing socialistic viewpoint...
     
  6. Queso macrumors G4

    Joined:
    Mar 4, 2006
    #6
    Here we go again. Conservatives blame Liberals, Liberals blame Conservatives, and America falls to pieces.

    When is the message going to finally sink in that you have to work together or you'll all fail?
     
  7. MonksMac macrumors 6502a

    MonksMac

    Joined:
    Dec 5, 2005
    Location:
    DFW
    #7
    I was at the bank earlier today, and it was the busiest that I have ever seen it. I wondered what was going on and one of the bankers told us (I was there with my mother) that they were doing a special mortgage adjustment thing today, presumably refinancing.

    Back on topic though-
    The Middle Class is clearly struggling. Sure most aren't in the street (often not far from it, however), but lack the stable financial outlook of those who fall above them in the income bracket.
    They often worry about, "what if I lose my job?","what about emergency medical expenses?" etc.
    I know that is certainly the case with my own parents. My mother has had health problems lately and it very obviously affected us through a significant reduction in her income. We get by, but any type of "emergency" is painful to bear. We were recently in a car accident, and the car was deemed totaled. We were mulling over the purchase of a good used car, but financial circumstances deemed it impractical, so we have to drive our old car after we bought it back from the insurance.

    @supercaliber They're Democrats. So what? Honestly it's the lesser of two evils. Why on earth would they vote for a party that the majority of is made up of big business, and supporters of big business? Unless you've got the dough, don't expect any help from them. Granted all (to use a broad term here) Republicans aren't like this, but they are in the minority for sure.
     
  8. ntrigue macrumors 68040

    ntrigue

    Joined:
    Jul 30, 2007
    #8
    How about the Congressman that was quoted:

     
  9. Eraserhead thread starter macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #9
    5% deposits probably should be required. They can be much higher than that in other countries. Its a good figure.
     
  10. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #10
    It won't. We're going to fail. Isn't it obvious at this point?
     
  11. MonksMac macrumors 6502a

    MonksMac

    Joined:
    Dec 5, 2005
    Location:
    DFW
    #11
    Very rarely that I agree with something said by Republicans, but I agree 100%. Easy credit and zero downpayment plans is one piece of the recessionary puzzle we're dealing with.
    If you can't afford to put down a certain percentage payment, then you shouldn't be buying a house.

    @Lee- Yeah, it's obvious we can't work together and it'll be our downfall. We've still got to find the good in life though, or it won't be worth living. *doesn't mean to sound preachy* :p
     
  12. hulugu macrumors 68000

    hulugu

    Joined:
    Aug 13, 2003
    Location:
    the faraway towns
    #12
    Even the Mortgage Insurance Premium of 1.75% for FHA loans without a 20 percent LTV would be helpful. The real problem, I suspect was the balloon-payment loans and the so-called blind loans (no money down, no credit or income review).

    The important aspect isn't that people can afford the home today, more than they can tomorrow.
     
  13. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #13
    Do you disagree with these very easily provable facts? As has been mentioned, the Financial Times is extremely conservative so for them to take up issues of social inequality is a pretty big deal.

    The American Century is over because Reagan killed the middle class.
     
  14. mactastic macrumors 68040

    mactastic

    Joined:
    Apr 24, 2003
    Location:
    Colly-fornia
    #14
    There's political gain in national failure. And it's being exploited.
     
  15. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #15
    There's money to be made as well.
     
  16. Eraserhead thread starter macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #16
    Well that's the only reason Glenn Beck does what he does.
     
  17. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #17
    Of course. It's gotten tot the point where people like that don't give one rat's ass about the truth, or what's right. They just say what people want to hear and fan the flames of hatred and fear- all for a buck.
     
  18. AP_piano295 macrumors 65816

    Joined:
    Mar 9, 2005
    #18
    I'm just wondering who ever decided that owning was the American dream? I'm not totally sure I ever want to own a home.

    I love the freedom of being able to move if I want without having to sell a home at a competitive price.

    I love not having to worry about the failures, leaks, changing mortgage rates whatever.

    Renting is like owning a computer with a warranty, you enjoy it more because your not concerned that you'll suddenly be forced to spend 300 bucks on a new mobo :D.
     
  19. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #19
    I'm right there with you. I can't imagine what a nightmare it must be to own a stand-alone house. I could do a condo though.
     
  20. hulugu macrumors 68000

    hulugu

    Joined:
    Aug 13, 2003
    Location:
    the faraway towns
    #20
    On the other hand, I can tear the kitchen apart, re-tile the floor, put in new fixtures and fill the backyard will trees and a garden. There's a rainwater harvesting setup and a water-heating array to boot, plus I can rig ethernet all over the place.

    A condo or apartment complex probably wouldn't let me get away with that.

    Additionally, if you buy a cheap house in a good neighborhood, you can remain above water even in bad times. My house is still worth much more than what I bought it for, even discounting improvements that can't easily be appraised.

    For many, owning a house can be advantageous, but not every needs to or should own a home.
     
  21. .Andy macrumors 68030

    .Andy

    Joined:
    Jul 18, 2004
    Location:
    The Mergui Archipelago
    #21
    Thirded. I still cringe at the idea of being tied to property. I can barely keep my bag tidy let alone have the enthusiasm to care for and maintain a whole home. It takes all my effort to stay at home and do the washing :p. Perhaps one day my perception will change, but right now I'm with you. The freedom to move around see the country/world (which I do for work) without being tied to suburbia is the most attractive. I've never had a problem with renting - my landlords have always been lovely :).

    The garden part sounds great but in the end I can do this at my family's places - and they can maintain it :D! I find I just use my home as a place to sleep, eat, and keep my stuff. The rest of the time I try and stay out as much as possible. I find a park, coffee shop, or library far more relaxing. I think it's because I enjoy being around other people and quickly feel isolated at home.
     
  22. tunerX Suspended

    tunerX

    Joined:
    Nov 5, 2009
    #22
    It is all opinion. I cringe when I think about being stuck in a rental and not being able to have a large pet or a giant fish tank. I also do not want to raise a family on postage stamp sized lot or no lot at all. I also enjoy the fact I can hand the house down as a legacy or sell it and get my money back.

    Until then I love being the master of the manor and sitting on my deck or dock and looking out over Lake Ontario and also maintain my privacy.
     
  23. .Andy macrumors 68030

    .Andy

    Joined:
    Jul 18, 2004
    Location:
    The Mergui Archipelago
    #23
    Most definitely :). Not everyone wants to live the same way and people's ideas and wants are likely very dynamic across their lives as their needs and wants change. I'll probably look back at my posts in five years and cringe :p.

    This sounds awesome. I'm picturing you in a red-quilted robe with satin lapels sipping on a brandy in a snifter the size of your head with one white and one black dog at you feet. You're gazing longingly at the sunset over the Lake while a single eagle lazily rides thermals.
     
  24. flopticalcube macrumors G4

    flopticalcube

    Joined:
    Sep 7, 2006
    Location:
    In the velcro closure of America's Hat
    #24
    Depends. I rented a farm a while back. Rent was cheaper than mortgage on a similar house on a suburban lot. When you rent, you are not "stuck" if you have the means to find a new place. Its not much fun to watch your "investment" lose value month after month either.
     
  25. tunerX Suspended

    tunerX

    Joined:
    Nov 5, 2009
    #25
    It is more of me sitting in my underwear reading the iPad and drinking coffee.
     

Share This Page