Chicago to Lose $3.9 Billion

CNBC Video


Many major markets will take hits in the tax income. Chicago being one of the biggest hit.

I wonder how Daley and Toddler feel about all of this? They cannot really admit to a housing problem, Especially one that hits their town, since we all know that Chicago is invulnerable to the housing bust. Yet, this might be where all of the taxing problems are coming from. CTA on the ropes. Will CPS be next??

USA Today...Doom & Gloom Today??

Housing woes have domino effect


Ofcourse Chicago is different and will be just fine! Just go to yochicago.com for all the proof you need. But the rest of the country is SCREWED!

If you haven't yet felt the impact of the nation's credit crisis, just wait. Chances are, you won't have to wait long.

So far, the turmoil may feel a bit remote for average people: Failed mortgage lenders. Gargantuan write-downs by banks. Foreclosures for people who couldn't really afford the mortgages they got.

What about the rest of us? Are we in danger? No one knows for sure, but quite likely, yes.

As the credit crisis seeps into farther-flung corners of the economy, more of us will find it harder — and costlier — to borrow money. The value of the funds in our retirement accounts could shrink. People with subpar credit will likely find it more difficult to qualify for auto and home-equity loans. Even consumers who make the cut may need higher credit scores and more documentation.

With loans harder to get, people will hesitate to buy cars, boats and other big-ticket items. The gravest fear? That weak consumer spending — along with surging energy prices, a long housing slump and sluggish job growth — will plunge the economy into a recession.

Jeez, could all of this happen because some jerk actually lent $400,000+ to buy a 900 sq ft shoebox ranch on the NW Side?? Nah, remember, "Chicago Is Different!"

Repeat after me:

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

Feel better yet?

AARRGGHH!!!!

Fed chief calls for help on housing

Bernanke urges Congress to act, sees growth slowing

By William Neikirk | Tribune senior correspondent

November 9, 2007

WASHINGTON - Federal Reserve Chairman Ben Bernanke offered no immediate relief Thursday to Americans buffeted by a housing-induced credit crunch, record oil prices, a falling dollar and financial market turmoil.

In testimony before the Joint Economic Committee of Congress, Bernanke warned of slowing economic growth and gave no reason for hope that the central bank would cut interest rates again when it meets in December, instead cautioning lawmakers about the potential inflationary consequences of oil prices nearing $100 a barrel.

Good lord, doesn't he know that his rate cuts are causing those "potential inflationary consequences??!!

But Bernanke said there has been discussion about raising limits on the size of the loans that Fannie Mae and Freddie Mac can buy from lenders from the current $417,000, which would allow primary lenders to make larger loans that Fannie Mae and Freddie Mac could lump together and sell as mortgage-backed securities.

The federal government could guarantee the increased loan limit, he said, adding that any such move should be temporary. Jumbo mortgages, those above $417,000, have become harder to get since the troubles over subprime loans.

People cannot afford such outrageous prices! That is why the bubble popped. Increasing the conforming standard will help nothing.

Stagflation fears

One congressman suggested the country could be returning to a 1970s-style "stagflation," when slow growth and high inflation hammered the U.S. economy. But Bernanke said any such outbreak of stagflation now would be mild compared with the 1970s and not to worry.

YA! Someone finally said it! Rising prices + flat wages = STAGFLATION.

"I don't see any significant change in the broad holdings of dollars around the world," he said.

The dollar's value is rooted in the strength of the U.S. economy, America's trade situation and open markets, Bernanke said.

Please don't remind us, Ben.............