UtahCribs Weblog

Real Estate, Homes, News, Statistics and more

Good News for Job Loss, Bad News for Mortgages..

Posted by UtahCribs, Real Estate, Homes on August 7, 2009

In a time where we all could use a little good news, the new Job report shows a slowing of job loss throughout the country. In all of the articles I have read, indicators seem to think we are on a slowing trend and may be near the plateau soon? Other analysts (including the White House) are warning, most likely we will hit the dreaded 10% unemployment nationally before we start seeing a rebound. FYI, we are at 9.4% unemployment as of this morning.

My interpretation: this is good news, I do think we are starting to see the bottom of all bad news. Not to say we are still in for a rocky road, maybe this is the breath of air we were looking for.

The next subject I would like to approach is the Mortgage mess. We are still neck deep in this world of hurt. I keep waiting and I know it is coming, with every article I read, every day that goes by. It is being solidified that we have to raise interest rates to combat the mess we are going to be in from inflation and all of this outragous spending. Big article this morning explaining how much trouble Fannie and Freddie are in, huge 2 quarter losses. Which is interesting as they are the only two players buying mortgage backed securities on the secondary market, and from what I am seeing they are being pretty selective as to what they are buying. Which in turn puts basically a credit freeze on the average consumer. I know all you skeptics out there are throwing a fit as you read this, however what is the solution? Fannie and Freddie are already screwed, the bad reports are still from all of the toxic assets they have had for the last several years. None of those are from recently aquired notes? If I am wrong please correct me? The problem at hand is, if we don’t solve this credit freeze and figure out a way for the good qualified consumer to purchase a home, car, groceries anything. We will not pull out of this mess. I love all of the comments people put on the blog when I post something like this, think about it. Everyone says its not the bottom, don’t buy! But what will continue to happen if this is the mentality of society as a whole? The only way to pull out is to restore confidence in the financial sector as a whole. The stock market, retirement accounts, Real Estate, you name it. When people don’t spend, money freezes up. Growth is impossible! Here is an interesting article about the whole Mortgage mess with fannie and Freddie, check it out and let me know what you think..

http://finance.yahoo.com/news/Fannie-Mae-seeks-107B-in-US-apf-3979081619.html;_ylt=AhNunw9a.HanyTEvoi2PuVy7YWsA;_ylu=X3oDMTE2YXJwODE1BHBvcwMxMARzZWMDdG9wU3RvcmllcwRzbGsDZmFubmllbWFlc2Vl?x=0&sec=topStories&pos=8&asset=&ccode=

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One Response to “Good News for Job Loss, Bad News for Mortgages..”

  1. Ok, so here is a simple little booklet that will be of great help for those amidst all this unemployment mess – visit
    http://recessionselfhelp.com and check it out.

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