Last July, I wrote a blog entry titled: The Worst Is Yet To Come for Foreclosures.
I wrote this on the basis that there was going to be an increasing number of mortgages that are due to reset and adjust with higher and higher monthly payment rates in the months going forward. Additionally, with the unemployment rate increasing, the number of defaulted mortgages can only increase in concert with that fact. Lastly, the foreclosure assistance program that Obama put in place in February is failing miserably in its attempts to stem the actual tide of foreclosures.
Just as predicted, the numbers are in for the third quarter and the rate of foreclosures was the worst in the history of the country (Click to See Full Story: "Foreclosures: 'Worst three months of all time'"). I would expect this trend to continue to increase for the remainder of this year and all through next year unless something is done by this Administration to actually improve the economy. People are losing jobs and they are losing their homes because the focus of the Stimulus Package is narrowly aimed at preserving jobs for teachers, cops, and union workers. At best, that's about 10 percent of the total workforce.
This concept of Obama's economic team, that a helicopter full of money can just fly over America and dump dollars on the country isn't working. It's not focused on the problem of an absent consumer in the marketplace. Work programs didn't work under FDR during the great depression and they aren't going to work now. We are stupidly ignoring the lessons that history has taught us (Click to See My Blog Entry of October of Last Year and Before The Stimulus Package Was Passed: "The Lessons of the WPA and the Great Depression"). Now, the only thing we've got to show for that ignorance is a literal mountain of debt!