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?
2 comments:
Did you see Zekass today celebrating the OFHEO #'s? WTF? He's claiming it's proof that prices aren't crashing. Apparently the fact that the numbers are in the red for the third quarter means things are headed upward.
anything to have some good news!
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