Presidential Debate: Round 2

[REASON]

Here is an article from the Wall Street Journal pointing out that the foreclosure crisis is not focused around low income housing. Also on this page is a link to a series of highly detailed demographics showing the concentration of delinquent mortgages across the country per quarter since 2001, and the mean value of the loans by geographical region over the same periods, among other highly detailed demographic charts. It is clear that this crisis of foreclosures is spread among income groups suggesting that there is for more to this than just risky loans that lenders were forced to give to the low income market.

Developments : Changing Demographics of the Foreclosure Crisis

Not even affluent homeowners are safe from the foreclosure crisis. In Maryland, “counties with high incomes and pricey housing were among the hardest hit,” the Baltimore Sun found. “All but two of the 10 most affluent counties — those with median household incomes topping $70,000 — saw foreclosure cases rise by more than 50 percent,” the paper says. In these pricier neighborhoods, buyers had to stretch more to be able to afford homes, the paper explains. Plus, easy mortgage money at the beginning of the housing boom didn’t help the situation.

Are these communities destined to become “slumburbs?” As foreclosures hit even the most affluent areas, suburbs may become tomorrow’s slums, writes Carol Lloyd of the San Francisco Chronicle. “We’re not talking about mean inner-city streets getting meaner, we’re talking about the pristine, newly built developments of four-bedroom, three-bath dream homes produced in the last housing boom becoming ghettos for the poor and the disenfranchised,” she says. Overbuilding and long commutes are contributing to the decline of suburbs, experts quoted in the article say. And the signs of a decline are already evident: “Looters stealing copper pipe and siding from new homes, gunshots puncturing picture-perfect facades, squatters taking up residence in abandoned houses,” one expert describes. –Lydia Serota

And here's the link to the Demographics Charts. I highly recommend reviewing them.

The Wall Street Journal Online - Interactive Graphics

[questor]

In looking at the demographic charts did you happen to notice that a great number of the cities with the highest foreclosure rates were retirement and vacation areas? In Naples Fl. for instance, many people were buying second homes or vacation homes, and investors were buying to flip on the appreciation. Could it be that these are among the more expensive properties going to foreclosure? The charts did not indicate whether these were primary residences or second homes. These things happened after the initial problem started. Are we done on this subject?

[REASON]

Originally Posted by questor

In looking at the demographic charts did you happen to notice that a great number of the cities with the highest foreclosure rates were retirement and vacation areas? In Naples Fl. for instance, many people were buying second homes or vacation homes, and investors were buying to flip on the appreciation. Could it be that these are among the more expensive properties going to foreclosure? The charts did not indicate whether these were primary residences or second homes. These things happened after the initial problem started. Are we done on this subject?

I'm well aware of it.

Could those have also been considered "risky" loans? Who was forcing lenders to qualify those? (intended rhetorically)

The problem has been systemic. There's plenty of blame to go around.

Now let's see who has the courage to overcome it and repair the damage before we fall into another depression. It's time to focus on remedies.

Yes, I'm done.

[Essay]

Originally Posted by REASON

I'm well aware of it.
Could those have also been considered "risky" loans? Who was forcing lenders to qualify those? (intended rhetorically)

The problem has been systemic. There's plenty of blame to go around.
Now let's see who has the courage to overcome it and repair the damage before we fall into another depression. It's time to focus on remedies.

Yes, I'm done.

Good points; and to restate them, and...
...at the risk of promoting an off-topic tangent....
This should probably be on the socialism v. capitalism thread, or at least the conservatives v. liberals thread, but....
...I thought it was, when I posted #48....
===

"While it is true the problem was exacerbated by fraudulent practices by a number of people and institutions, the seeds were planted here:" -Questor (...that whole helping the poor thing, right?)
Right, but as I pointed out in post #48, these seeds are a small fraction of the problem.

"It was an attempt to change social dynamics without understanding the consequences." -Questor

The consequences being a $60 trillion tree, grown by corporate financial creativity which leveraged that seed.
That wasn't done to help the poor.
I keep trying, but I only find conservatives in these financial institutions.

"P.S. in my area $ 300,000. IS low cost housing." -Questor
Well I guess we need to stop equating "helping the poor" with "building low-cost housing," eh?

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