Posted: 11/26/07 20:24
by Paul Bartlett
The subprime mortgage meltdown has unleashed a cascade of residential foreclosures. 2008 will be worse. It appears that by the end of next year, nationally twenty million or more housing units will have been repossessed.
And through the presidential debates, barely a word. The Republicans care only about their misguided terrorism policy, cutting even more taxes for the wealthiest, and further dividing this nation through draconian social policy. The Democrats prefer to bash Hillary.
We are teetering at the abyss. When homeowners stop paying their
mortgage, they stop escrowing their real estate taxes. Those taxes are apart of local government (municipal, county and school district) budgets. Local tax collections will suffer; the tax base will shrink; tax liens will skyrocket; and, solvent homeowners will pay, and pay, and pay.
Greed has resulted in the worse housing crisis since the Great
Depression. Complicit mortgage brokers, shady realtors and corrupt
appraisers lead the list. Major lenders share the blame, driven by a
hunger for more and more profit. Republicans have gutted our regulatory systems, making it all possible. The perfect storm.
The next president's biggest crisis will not be terrorism, taxes or
what the two gay guys at the end of the street are doing. It will be
this perfect storm.