By Michelle Koyanagi
The housing crisis is a huge issue in America right now, not just because of the foreclosures, but because it includes so much more than just “housing.” The blogs I’ve seen reflect this. We cannot talk about the housing crisis without also talking about the economy, immigration, the government, the banks…etc. There are so many angles one could take with this issue. The one that comes to my mind is immigration.
It is no surprise that the housing crisis affects many immigrants in America. One of the blogs entitled, “Housing Crisis Hurts Immigrants More” (http://cityroom.blogs.nytimes.com/2008/12/03/housing-crisis-hurts-immigrants-more/?partner=rss&emc=rss) talked about the housing situation for immigrants in New York. The blog talked about a report entitled, “Confronting the Housing Squeeze: Challenges Facing Immigrant Tenants, and What New York Can Do.” The report even accused some private equity investors of using questionable tactics to raise rents because of purchases they made in places with high immigrant populations.
I understand that business exists solely to make profits, but hearing about reports such as this one only makes me feel more shameful of American capitalism. I realize there are many more corrupt deeds that go on every day with businesses, but instead of hearing more and more about these kinds of wrongdoings, I wish there were more stories out there that talk about the good things and the good practices businesses are doing. Hearing about investors that follow the law and practice good business tactics would not generate as much “buzz” as hearing reports that have uncovered the “wrongdoings” of businesses, but it would make some Americans feel a little more hopeful about the future state of things—at least I think so.
Going back to the report, the author also talked about some tactics New York immigrants are using such as creating two family homes to deal with the housing shortage problem. Some of those tactics are illegal under the current building and zoning regulations, but the blogger did mention a proposal in the report that suggested legalizing those units that are currently illegal but safe. I completely agree with that proposal and I hope it happens. This definitely is not a solution to the housing shortage, but it just goes to show that people are doing what they can to deal with the situation and they should not be punished for that.
Thursday, March 5, 2009
Simplify, Please
By Alissa Scheller
I really just don’t understand anything financial, and my microeconomics professor will probably back me up on that.
This whole housing crisis is also confusing, but I think I get the basics: people took out loans they couldn’t afford to pay back. Americans seem to like living beyond their means and faking prosperity – which is all fun until you have to pay off your debts.
This article from the Huffington Post (http://www.huffingtonpost.com/david-paul/federal-efforts-to-suppor_b_170954.html) explained it all to me pretty well. The writer argues that proposals to “bail out” indebted homeowners (in the same vein as TARP, which bailed out financial institutions) is not a solution. He losses are real, and shifting them around won’t do any good.
Most of the articles and blog posts I found about the lending crisis were complicated. They had all this financial jargon and things that I just didn’t understand. I realize that the economy has a lot to do with economics, and therefore economic language is needed to describe it.
However, I strongly suspect that the average American would not understand most of the articles I read about the lending crisis. It was really hard to find anything that simply explained what was going on – most offered intricate plans to “save” the economy – as if we weren’t already past that.
So, this is what I would say to blog writers if I could: write simply, so that others may simply read. Stop it with the jargon. Some of us are just trying to pass econ so we can graduate.
I really just don’t understand anything financial, and my microeconomics professor will probably back me up on that.
This whole housing crisis is also confusing, but I think I get the basics: people took out loans they couldn’t afford to pay back. Americans seem to like living beyond their means and faking prosperity – which is all fun until you have to pay off your debts.
This article from the Huffington Post (http://www.huffingtonpost.com/david-paul/federal-efforts-to-suppor_b_170954.html) explained it all to me pretty well. The writer argues that proposals to “bail out” indebted homeowners (in the same vein as TARP, which bailed out financial institutions) is not a solution. He losses are real, and shifting them around won’t do any good.
Most of the articles and blog posts I found about the lending crisis were complicated. They had all this financial jargon and things that I just didn’t understand. I realize that the economy has a lot to do with economics, and therefore economic language is needed to describe it.
However, I strongly suspect that the average American would not understand most of the articles I read about the lending crisis. It was really hard to find anything that simply explained what was going on – most offered intricate plans to “save” the economy – as if we weren’t already past that.
So, this is what I would say to blog writers if I could: write simply, so that others may simply read. Stop it with the jargon. Some of us are just trying to pass econ so we can graduate.
Foreclosure Confusion
-Dara Duratinsky
I will be the first to admit that anything about finances confuses me. When it comes to the economy and housing foreclosures, I need a book from the ".....for dummies" collection. This is why I am so disappointed by the many blogs I read about the housing foreclosure crisis. I can't possibly be the only person in this country who does not fully grasp what's going on, and all that the media is telling me is that there's a HUGE problem, and I should probably be worried. More legitimate news blogs like huffingtonpost.com seem to be the biggest offenders. Either that, or I am a terrible researcher.
In an article dated Feb. 15, 2009 from huffingtonpost.com, the writer, Hurst, goes on and on about how there is a financial crisis and a housing foreclosure crisis. The most he goes into detail about this subject is that the U.S. is in deep and the economy is going to get worse before it gets better. Oh, and did you know that the Republicans and Democrats are not agreeing on the stimulus bill? Seriously Hurst? I don't know how many times i've read and heard about how much worse our economy can get or how much Democrats and Republicans can not agree. Can't you give me anything new?
Though I am not a frequent visitor of blogs, I can't recall reading anything that tells me about the housing crisis in average American speak. I want to know what exactly got us into this mess and how exactly this stimulus bill is going to effect ordinary Americans. And please, don't just tell me that the bill "aims to save or create as many as 3.5 million jobs through massive government investment while boosting consumer spending through modest tax cuts" or that the bill will help homeowner on the brink of foreclosure. WHAT DOES THAT MEAN? Give me details!
Is Mad Money the Nostradamus of Real Estate?
The housing crisis facing this country due to the sub-prime mortgage failures should be on the mind of every American. This is not a Democratic issue (the GOP didn't provide enough regulation). This is not a Republican issue (don't the Dems know that Fannie and Freddie were spawned by the government?). This issue is American, born and bred.
In the wake of such a fiasco, people do what they do best when they're pissed off and want answers- they find someone to blame. The truth is there are so many entities and individuals to hold at fault that focusing efforts on one of them is pointless and counterproductive. The problem is that all of them fed off each other, refusing to take personal responsibility and use the appropriate judgment.
The government was stupid to pile every single deed in two gigantic companies. The bank was stupid to lend money out to a (potential) homeowner that they knew couldn't afford to pay it back. That same (potential) homeowner was stupid to attempt to take out a loan they knew was outside of their means. Wall Street was stupid to give companies positive credit ratings when they were really in the toilet. The list goes on. They all thought the housing bubble would continue to expand and there was nothing to stop it. Everyone involved deserves an equal slice of the blame.
But instead of being such a pescimist (which essentially equals a realist right now), let's stop taking names and take a look at how/when this catastrophe will end.
Remember, don't tell me the problem, give me the solution.
An LA Times blog quoted Jim Cramer, host of CNBC's "Mad Money" and a former Wall Street insider, as saying that the trough ("bottom" for those who aren't familiar with economic jargon) may arrive as soon as the third quarter of this year... Yay!!! He mentioned how "an increase in sales spurred by falling prices; a slowdown in home building; federal efforts to help troubled borrowers; and population growth that will spur household creation and demand for housing."
And for those who have been hit the hardest, I'm talking to you Arizona, California and Florida, he also went on to say, "The first to fall is usually the first to return."
Booyah Jim...
By Justin Ellis
In the wake of such a fiasco, people do what they do best when they're pissed off and want answers- they find someone to blame. The truth is there are so many entities and individuals to hold at fault that focusing efforts on one of them is pointless and counterproductive. The problem is that all of them fed off each other, refusing to take personal responsibility and use the appropriate judgment.
The government was stupid to pile every single deed in two gigantic companies. The bank was stupid to lend money out to a (potential) homeowner that they knew couldn't afford to pay it back. That same (potential) homeowner was stupid to attempt to take out a loan they knew was outside of their means. Wall Street was stupid to give companies positive credit ratings when they were really in the toilet. The list goes on. They all thought the housing bubble would continue to expand and there was nothing to stop it. Everyone involved deserves an equal slice of the blame.
But instead of being such a pescimist (which essentially equals a realist right now), let's stop taking names and take a look at how/when this catastrophe will end.
Remember, don't tell me the problem, give me the solution.
An LA Times blog quoted Jim Cramer, host of CNBC's "Mad Money" and a former Wall Street insider, as saying that the trough ("bottom" for those who aren't familiar with economic jargon) may arrive as soon as the third quarter of this year... Yay!!! He mentioned how "an increase in sales spurred by falling prices; a slowdown in home building; federal efforts to help troubled borrowers; and population growth that will spur household creation and demand for housing."
And for those who have been hit the hardest, I'm talking to you Arizona, California and Florida, he also went on to say, "The first to fall is usually the first to return."
Booyah Jim...
By Justin Ellis
Wednesday, March 4, 2009
Could Immigration Be a Solution?
Reading these blogs about the housing crisis is really giving me a headache. Most of them are blaming one party or another, while others are discussing possible solutions to it. A lot of people are suggesting loosening up the immigration laws. James Stalling on his personal blog says the solution can be immigrants. He proposes to “temporary widen legal immigration quotas to three million with conditions.” He says if we ask them to come, and force them to purchase a home, and live in that home, and put at least 20 % down on that home, and reward them by accelerating a path to new citizenship, then not only is that a great lure to immigrants, but a good solution to our own housing problem. Tori Gattis says,”offer an immediate green card to any foreigner …and it is only good as long as they continue home ownership.” There are others out there that argue that immigration is definitely NOT the answer. Bruce Cain mentions that if we let more immigrants in, then there is a chance they will taking more of our jobs. The job market is already down in most of the US, and by having a policy that makes the legal immigration policy easier, then we are threatening ourselves even more. Diana Olick from CNBC makes a point when she says, “immigrants will ease some of the pain, but let’s not start making our immigration policy arguments based upon mistakes made right here at home.” In a way easing up on immigration due to the housing crisis has its ups, and it has its downs. The housing market would probably go up—if they buy, but that doesn’t mean more jobs would be created as Bruce Cain mentioned. No matter how you look at the housing crisis, coming up with the solutions are sticky situations all over.
Tuesday, March 3, 2009
A Bug's Life and a Dog eat Dog World: The Housing Crisis from the Animal Perspective
By: Kate Pinkerton
It is all over the news, the web, and word of mouth: The Housing Crisis. Many people are angry because the government is helping people who accepted loans they couldn’t afford. They are mad because their tax dollars are helping people who shouldn’t have taken those loans in the first place to have houses that were beyond their means. They are also mad at the banks who gave those loans out in the first place. It is hard to point the finger of blame to when there were multiple parties involved making bad decisions. It’s one of those times where you just feeling like throwing your hands up in the air and saying, “Whatever! I’m done!” and groan and moan.
The unfair part is that these bad decisions are affecting people who were making the right decisions and living within their means. The people who managed their money well are giving their tax dollars to support the stupid people, but they have to let that happen. This is where it got fuzzy for me. I kept thinking, “Why does it matter whether or not the government helps these people?” Besides it being a moral matter of so many people losing their homes, I couldn’t
understand why these mistakes affected everyone who owns a home. NBC News finally clarified that when people foreclose on their house, the value of that house goes down, as well as the value of the houses around it. On Meet The Press (32 Minutes Into that Video Clip) David Gregory states that the problem is that “doing nothing is not a good option.” Even if people are mad because they made their payments by adding a second job or something, they can’t complain about federal funding because it’s the only way that the housing market will stabilize and their homes will maintain their value. Someone on Meet the Press said that people feel like they are the Ants taking Care of Grasshoppers (A Bug’s Life anyone?) The only difference there is that grasshoppers, at least in the movie A Bug’s Life, pressure ants to do all the work, whereas, this was a case of misjudgement, greed, and ignorance.
Humans aren't the only ones being affected by the housing crisis: pets are too. When homes are foreclosed and people are losing jobs, petowners often have to move to renting situations, where pets aren't always allowed. For example, the Berkshire, where many AU students reside, does not allow dogs, and only allows cats for a certain amount of money. Even if a family who recently foreclosed on their home could keep their pets in their renting situation, they most likely are struggling financially and are forced to give up their pets. According to Shankblog, people are doing this left and right, and not just the typical drop them off in the shelter method- they are simply leaving pets behind in the houses they can't afford. What happens to them, then? So not only do the people who have been handling their money well pay the taxes to support others, but not they have to pay up to $150 for adoption of pets
who are now homeless.
As negative about this situation as I sound, I honestly think the giving of people who have been able to maintain their lives to those who have had some trouble and made bad decisions show how well this country can support each other. We all make mistakes, and this happened to be a widespread, financial crisis-size mistake, but it is something our country can make it through.
It is all over the news, the web, and word of mouth: The Housing Crisis. Many people are angry because the government is helping people who accepted loans they couldn’t afford. They are mad because their tax dollars are helping people who shouldn’t have taken those loans in the first place to have houses that were beyond their means. They are also mad at the banks who gave those loans out in the first place. It is hard to point the finger of blame to when there were multiple parties involved making bad decisions. It’s one of those times where you just feeling like throwing your hands up in the air and saying, “Whatever! I’m done!” and groan and moan.
The unfair part is that these bad decisions are affecting people who were making the right decisions and living within their means. The people who managed their money well are giving their tax dollars to support the stupid people, but they have to let that happen. This is where it got fuzzy for me. I kept thinking, “Why does it matter whether or not the government helps these people?” Besides it being a moral matter of so many people losing their homes, I couldn’t
understand why these mistakes affected everyone who owns a home. NBC News finally clarified that when people foreclose on their house, the value of that house goes down, as well as the value of the houses around it. On Meet The Press (32 Minutes Into that Video Clip) David Gregory states that the problem is that “doing nothing is not a good option.” Even if people are mad because they made their payments by adding a second job or something, they can’t complain about federal funding because it’s the only way that the housing market will stabilize and their homes will maintain their value. Someone on Meet the Press said that people feel like they are the Ants taking Care of Grasshoppers (A Bug’s Life anyone?) The only difference there is that grasshoppers, at least in the movie A Bug’s Life, pressure ants to do all the work, whereas, this was a case of misjudgement, greed, and ignorance.Humans aren't the only ones being affected by the housing crisis: pets are too. When homes are foreclosed and people are losing jobs, petowners often have to move to renting situations, where pets aren't always allowed. For example, the Berkshire, where many AU students reside, does not allow dogs, and only allows cats for a certain amount of money. Even if a family who recently foreclosed on their home could keep their pets in their renting situation, they most likely are struggling financially and are forced to give up their pets. According to Shankblog, people are doing this left and right, and not just the typical drop them off in the shelter method- they are simply leaving pets behind in the houses they can't afford. What happens to them, then? So not only do the people who have been handling their money well pay the taxes to support others, but not they have to pay up to $150 for adoption of pets
who are now homeless.As negative about this situation as I sound, I honestly think the giving of people who have been able to maintain their lives to those who have had some trouble and made bad decisions show how well this country can support each other. We all make mistakes, and this happened to be a widespread, financial crisis-size mistake, but it is something our country can make it through.
Does Anybody Care?
By Jordan Coughenour
Not more than four or five months ago, the housing crisis was the center of the recession-related news. Every blogger was giving their input as to how it could be resolved, drawing connections between it to anything and everything, most notably the influx of "It's a Wonderful Life" related articles around Christmas time.
In the period that has passed since then however, the financial depression (can we call it that already?!) has gotten infinitely more complicated and large in scope. Realtors at one point were the only group who had a bulls eye painted on their forehead for their careless lending and mortgages. Now we can take aim at everyone from insurance agents to Congressmen to Wall Street traders and executives. The blame game has grown so much that the origins of these financially strained times are muddled, and near lost in the trillions of dollars being thrown around by the government. Huffington Post blogger William K. Black recently took it upon himself to refresh our memories on these issues with his article, "The Two Documents Everyone Should Read to Understand the Housing Crisis." Though the piece was well written and the documents well chosen, the majority of commentors seemed to reject his claims and instead went to what they believed to be the crux of the issue- the bankers and the bailouts. I can't remember the last time that one of those looming "foreclosure" signs haunted the front page of prominent blogs such as The Huff Post or, even on the opposing end of the spectrum, the Drudge Report.
Who cares about a few billion dollars worth of houses sitting vacant, or their past owners' debt troubles when Wall Street executives are losing twelve zeros worth of bucks every day? If housing is covered, it's thrown in with another topic, such as Detroit automakers' woes. The bredth of the situation has simply grown too large, with stakes that go beyond a fancy living room and a golf course view, that housing crisis seems to be only one of many larger issues covered by bloggers in this wide-reaching time of ruin.
Not more than four or five months ago, the housing crisis was the center of the recession-related news. Every blogger was giving their input as to how it could be resolved, drawing connections between it to anything and everything, most notably the influx of "It's a Wonderful Life" related articles around Christmas time.
Maybe Pottersville wasn't such a bad idea after all...
In the period that has passed since then however, the financial depression (can we call it that already?!) has gotten infinitely more complicated and large in scope. Realtors at one point were the only group who had a bulls eye painted on their forehead for their careless lending and mortgages. Now we can take aim at everyone from insurance agents to Congressmen to Wall Street traders and executives. The blame game has grown so much that the origins of these financially strained times are muddled, and near lost in the trillions of dollars being thrown around by the government. Huffington Post blogger William K. Black recently took it upon himself to refresh our memories on these issues with his article, "The Two Documents Everyone Should Read to Understand the Housing Crisis." Though the piece was well written and the documents well chosen, the majority of commentors seemed to reject his claims and instead went to what they believed to be the crux of the issue- the bankers and the bailouts. I can't remember the last time that one of those looming "foreclosure" signs haunted the front page of prominent blogs such as The Huff Post or, even on the opposing end of the spectrum, the Drudge Report.
What about me?!
Who cares about a few billion dollars worth of houses sitting vacant, or their past owners' debt troubles when Wall Street executives are losing twelve zeros worth of bucks every day? If housing is covered, it's thrown in with another topic, such as Detroit automakers' woes. The bredth of the situation has simply grown too large, with stakes that go beyond a fancy living room and a golf course view, that housing crisis seems to be only one of many larger issues covered by bloggers in this wide-reaching time of ruin.
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