The economy stinks here...

[silkiechicken]

Probably because when nobody can afford to buy food, people still HAVE to eat to live, and if you have stuff to eat, well, you can live... however. Theft of goods was a problem apparently...

 

[DrakeMaiden]

That's a horror story, banter. For anyone else in a similar situation (cross-country move), I hear there are companies that won't charge YOU, but will rent to people cheaply to keep your house lived-in and show quality. There is an interesting business to get into in these times.

 

[DrakeMaiden]

There was a recent local account of a young woman held-up at the gas station for $10. I guess they shot the guy. All that over $10!

 

[banter]

That wasn't an option for us since it was a company move-however since we had lived there a long time and had great neighbors, they looked out for us. They had no idea these people weren't part of our relocation service or they would have let us know. It's going to take me a loooooong time to get over this!

 

[jeaucamom]

And the other side of the coin to all this is... all these people who are having their homes forclosed on (CA is 472% from last year) are flooding the rental market and driving the prices way UP!! It is so frustrating. We were so blessed that we found the home we just moved into. The guy is from out of the area, and had no idea what local prices were so we got it several hundred dollars below what he could have. And because we were psychotic about checking papers everymorning at 5 am and up dating Craigs list every hour, we found the add 7 minutes after it posted and we were the first ones to call. But it took us 5 months to find a rental home and I have a good income and great rental history. How ridiculous is that!!

 

[hencackle]

DH was telling me that the surge in foreclosures was due to the ballooning mortgage rates--start out nice and low--lulling the buyer into a false sense of "affordability"--then he's hit with a payment he definitely can't afford. It doesn't help that realtors, anxious to make a huge commission, show prospective buyers houses that are really beyond their means. Don't bank on the idea that your income will rise...buy only what you can afford now using a fixed mortgage rate.

I feel kinda sorry for those people living in McMansions in Planned Community, USA because they can't raise a garden or have chickens without violating some homeowner's code.

 

[texaschickmama]

I believe it all starts with the outrageous gas prices. I don't want any pointing fingers because the fact is the gas prices are just skyrocketing everyday with absolutely no help. HELLO, normal American middle class families are not making it because of this. I don't know where this will go. I think we will start making our own biodiesel to burn. Makes it smell like french fries when you go down the road.

 

[pips&peeps]

I agree that the gas prices are contributing to these problems. Can someone explain to me why the prices are going up and up and up.

Meanwhile, the gas companies have the largest profit margin they have ever had. One was 30 billion in profit for one quarter. This is gouging I tell you, the government should have stepped in a long time ago and stopped this.

The other problem was those interest only mortgage payments.... People were buying houses that they could not afford. In many rural areas that have seen recent booms, there is not economy (income) available to support such expendatures.

What were people thinking?

 

[DrakeMaiden]

Having purchased our property in the past year, I can tell you we had to INSIST on old school financing, no home equity loan on the place we were selling (huh??? Explain to me how that makes ANY sense), etc. There was needless pressure to go into debt. It was unreal. The bank employees I spoke with thought I was nuts for not wanting to mortgage my first born child.

And yes, texaschickmama, the gas prices are driving the cost of groceries and everything else up too.

 

[hencackle]

Pips--you are so right about the oil companies profit margin!!!!
Don't forget insurance companies....

DH & I are self-employed--own a roofing company, with all the insurances and licenses needed to run a legitimate business. A couple of years ago during an annual audit by the general liability company, they actually had the gall to say "they didn't make any money on our policy" and that's why they needed to raise our rate even more! We've NEVER had a claim--how did they lose money on us?

Right before that audit occurred, the newspaper printed an article about record profits made by both oil companies and insurance companies. I made a comment about that to our agent and all he could say is, "yeah, you're right."